Eidos cuts 14 titles. Is the ship sinking?

CEO says change is needed!

SCi Entertainment Group plc ('SCi' 'the Company' or the 'Group'), today
announces a group re-structuring plan following its business review and its
interim results for the six months to 31 December 2007.

The business review led by new Chief Executive, Phil Rogers, has decided on the
following actions:


Fundamental change in business structure:

  * SCi's business structure will be significantly changed from a centrally
    controlled development and publishing model to a studio-led business focused
    around cornerstone products, such as Tomb Raider, Hitman, Championship
    Manager and Deus Ex.
  * Creation of Eidos PLAY to fuse together casual and new media resources to
    attack growing markets.
  * Flexible and efficient approach to distribution.

Product improvement initiatives started:

  * Cancellation of 14 projects which the Board considers are unlikely to
    generate an acceptable return on investment or are not of appropriate
    quality.
  * Studios focusing on product innovation and delivery of high quality games.
  * Production services to form part of the studio group, relocating to
    Montreal from London.

Cost reduction plan:

  * New business structure targeted to operate with a maximum of 800 people, a
    reduction of 25% from current headcount.
  * Annual operating costs to be cut by £14 million by the end of June 2008 at
    a one-off cost of £7 million


Phil Rogers, Chief Executive of SCi Entertainment Group said,

'SCi is in need of immediate change.

'Following our business review over the last six weeks, we are initiating a
clear action plan based on three fundamental strands of activity: a radical
change in our structure to a studio-led business, a top to bottom programme of
product improvement and efficiency and a considerable cost reduction plan.

'To get SCi on track we have to act rapidly and effect change quickly. We must
allow the world-class people that we have within the Group to focus on strong,
profitable titles which will create the value our shareholders deserve.

'I am confident our staff share this vision and excitement for the future, and
determination to build a working environment where our innovation and creativity
can be commercially realised.'


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Source / Author / Credit: Eidos