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Company Background
SCi was founded in
1988 as a developer and publisher of computer and video games. The Company has published over 110 titles to date although many of these were limited budget products. This ensured that SCi had modest and
unspectacular growth during most of the 1990s.
The Company achieved considerable success with the (wholly-owned) Carmageddon series. Carmageddon achieved sales of over 1m units, spread across several versions. SCi now has products in development across all major platforms (PC, PS2, Xbox and GameCube) and video games now comprise the vast majority of the Company's release schedule and sales. The Company has enjoyed particular success with its Conflict series (over 6m unit sales to date). Pivotal Studios, the development team behind the Conflict series, was bought by SCi in September 03 for £2.4m cash (financed by debt). Following the acquisition and integration of Eidos in mid 2005, the Company now employs around 800 staff (of which around 500 are in development). The acquisition of Eidos delivered to SCi a string of valuable games IP including the 27m unit-selling Tomb Raider franchise, Hitman, Commandos and Championship Manager.
The Company raised £1m of new money via a placing in April 1998, £0.9m via a placing in October 1999, £20m via a rights issue in November 1999 and £3.1m via a placing and open offer in June 02.
In March
2005, SCi made a succesful £76m share offer to acquire troubled larger rival Eidos, supported by a £60m fully-underwritten fund-raising. This was followed by a £17.4m placing in April 2006.
Activities
Pivotal Games: Wholly-owned UK-based
development team behind 6m unit selling Conflict series. Pivotal was bought following the liquidation of its 90% shareholders, Kaboom Studios in mid 2003.
Crystal Dynamics:
US development company behind platform-game hits Pandemonium and Gex, and adventure hits Soul Reaver and Blood Omen. Crystal Dynamics were acquired by Eidos in September 1998 for £28.4m
and is currently developing the next Tomb Raider product, due during SCi's H206.
IO Interactive: Danish creators of the 4m unit selling Hitman series for Eidos as well as the 900k unit-selling Freedom Fighter game for EA. Acquired in March 04 by Eidos for £23m.
Beautiful Game Studios: Wholly owned studio set up specifically to undertake the continued development of the Championship Manager series.
Pyro Studios:
Developers, 25% owned by SCi, of the 2.2m unit selling Commandos series. Currently developing Commandos Strike Force, Pyro has 75 employees.
OTHER
Proein: A leading Spanish
distributor, 75% owned by SCi, 25% owned by the same family that owns 75% of developers Pyro.
Tomb Raider Films: Eidos originally licensed the film rights for Tomb Raider to Paramount Studios
in 1999. The first film, which began production in May 2000 and was released in summer 2001 is understood to have grossed in excess of $300m at the box office and
in DVD/VHS and merchandise sales to date. Indeed its success has not only flown in the face of the historical precendent for films based on games IP to fail, but has spawned a (less succesful) sequel, launched in Summer 2003. For both films, Eidos received a very small share of gross cinema/video sales as well as a sign-on fee for each film (of around £1m) and a share of all other merchandising sales. Although the second Tomb Raider film failed to make as significant impression at the box-office as the the first film (grossing around half the amount), DVD/VHS sales have been brisk. Following the success of Tomb Raider: Legend, the Company has begun talks with Paramount about a third film and even a TV series.
Other Films: Currently under option with Columbia pictures, a film based around Eidos' hit game Deus Ex, was expected to be greenlit for production by the end of calendar 2002. However, over four
years later, the film has not yet received the green light although neither has it been cancelled. Both Hitman and moribund Eidos brand Fear Effect have also been optioned.
Key Titles in development
The Conflict series (Conflict: Desert Storm, Conflict Desert Storm 2, Conflict: Vietnam and Conflict: Global Terror) have now exceeded 6m units.
Hitman: Contracts, Battlestations: Midway, the next Tomb Raider.
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