Sci Entertainment Share Discussion Threads

[darrens] 21/9/2008 08:53

dealy, following the results they are doing management presentations to institutions at the moment.

Citicorp put out a note to accompany the results, which I can send to you if you e-mail me, but I haven't got hold of the one that Peel Hunt (presumably) put out.

[dealy] 21/9/2008 08:26

Are management planning to do anything to raise investor awareness? What about research reports etc? Ok, it's clear that last week nobody was following small caps with all the chaos. But at some time there must be some plan to move the share price up.

[darrens] 20/9/2008 13:58

Rob, totally agree that there is better value in the VG industry and totally agree that SCi need a big capital injection from TRU or they're dead in the water.

But personally I think their only shot is to try and take their ip (TR, Hitman, Deus Ex, Thief, Just Cause) and along with some Warner licensed stuff like Batman try their damnedest to create triple-A games which fire the public's imagination.

That's the only business that's ever worked in VG publishing and I don't see it changing any time soon. Sure you can make money in other areas but if you don't have the foundation of the "killer" titles then you're history. Every successful company has that foundation and I see SCi's only real option is to pursue that.

I think the current management recognise that, which is why I think they're worth a punt, but I don't think they feel it as acutely as they should. Hence my struggle to understand the business sense of spending money on a Chinese office and a re-branding when the money surely should be spent on the make or break TRU.

If TRU doesn't perform really well then they don't have to worry about Chinese offices and re-branding!

Just to answer some of your questions. Highlander isn't mentioned any more which could mean that they've shelved it or it could mean they're just going to chuck it out and forget it. Either way, it's not a title that has any chance and I applaud their decision not to throw any good money at it. Ditto Shellshock which is still coming out but without any hope.

On the re-branding they decided to totally ditch the SCi name and just use Eidos. They will (in due course) be re-listed as Eidos. You can debate whether it's a good idea but I think there's no debate about the timing - it's just plain the wrong time to do it.

So, I maintain my position which is that I think they're worth a punt but until the prospects for TRU become clearer then it's a punt and no more.

[togglebrush] 20/9/2008 11:45

FWIW Prince of Persia latest edition from UBIsoft will be released

USA 18 Nov on DS $29.99 on XBox 360, PS3
USA 02 Dec on PC (source Gamestop

UK 21 Nov on DS £24.99
UK 28 Nov on PC
UK 05 Dec on PS3 and Xbox 360 £39.99 source Game

[darrens] 20/9/2008 10:20

Uncle-Bob - 20 Sep'08 - 03:24 - 110 of 110

Let's just hope they don't take milk in their coffee, or they'll all be dead by the end of the month.

But seriously, does Eidos have too much money or something? burning a hole in its pocket?

As for the earlier debate re their portfolio, well aside from TRU it's all a bit second-tier really. Considering this Q4 will be the biggest ever for the industry, there is an absurd level of competition. Smaller fish will get fried.

Good luck all, and have a good w/e!

Well, I kind of agree - it may not intrinsically be a bad idea (debatable) but as for the timing then it just seems a bit weird. As I've said before about the re-branding, I can't help but feel that any penny spent on the Chinese office would be far, far better spent on TRU marketing. It does seem incredibly "Emperor Nero" to be spending money on a re-branding and a Chinese office when they've got a make or break game coming up.

As for the release schedule, then it is all second-tier...but that's as good as they can do. Apart from Hitman (which isn't coming out until 10/11) then they don't really have another other premier ip. But at least they're actually trying to work their existing ip rather than blowing money on hit-and-miss new stuff.

I agree it's not awe-inspiring but I think they're doing the best with what's available (excepting Hitman) and that, in itself, is a departure from the previous few years.

[uncle-bob] 20/9/2008 02:24

Let's just hope they don't take milk in their coffee, or they'll all be dead by the end of the month.

But seriously, does Eidos have too much money or something? burning a hole in its pocket?

As for the earlier debate re their portfolio, well aside from TRU it's all a bit second-tier really. Considering this Q4 will be the biggest ever for the industry, there is an absurd level of competition. Smaller fish will get fried.

Good luck all, and have a good w/e!

[opmoc] 19/9/2008 23:40

Darren,

Good to hear from you. I have absolutely no interest in SEG - except from a historical basis.

Please don't make any decisions about which thread you post on as a result of any nonsense I may post.

Oh and Darren - its not about being "made offers"

You just decide to do it yourself - and when appropriate you "make offers"

No one got anywhere in this life waiting for someone else to make them an offer.

Tony

[darrens] 19/9/2008 17:23

What the heck?!

"Eidos opens Shanghai base

New office established to build partnerships in Asia and forge outsourcing opportunities

SCi-owned Eidos is the latest to expand its operations into Asia with the opening a new office in Shanghai, China.

The firm responsible for the likes of Tomb Raider, Hitman and Championship Manager has established the new operation, wholly-owned by Eidos, to aid its studio's outsourcing opportunities.

Eidos Shanghai has opened with a small team of experts in game design, production, art direction and programming headed by Christine Thaarup, worldwide studio outsourcing manager at the firm and former producer at its Denmark-based IO Interactive studio.

As general manager of Eidos Shanghai, she will be looking to work with "the very best partners" as the publisher/developer, fresh from its studio-focused restructuring, looks to keep costs down via outsourcing."

She added: "There is incredible talent here in China; we are lucky to already be working with some of them and are looking forward to growing these and new relationships."

"We are looking to accelerate our outsourced development with an 'organic-growth' approach," added Phil Rogers, Chief Executive Officer, Eidos.

"We already have years of experience in outsourcing of character and environment artwork and we are looking to build on this towards further outsourcing opportunities such as full level production, co-development and potentially full game production."

Nine months ago, the firm told Develop that it would be sharing its internal technologies with partners in China to make sure the switch to outsourcing proved efficient.

"This is a fantastic opportunity for Eidos," said Julien Merceron, chief technology officer at Eidos. "The opening event success is a way for the community here to let us know we are warmly welcomed and that they understand our presence will lead to more opportunities for many talented people."

[the crypt] 19/9/2008 13:10

LOL- WHATS HAPPENDED TODAYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

[dealy] 19/9/2008 12:32

This stock isn't on anybody's radar screen. Unbelievable.

[darrens] 19/9/2008 10:10

PoP release confirmed as 2nd December in Europe (two weeks after TRU) - not sure about US.

[the crypt] 19/9/2008 08:48

lost me guts

[darrens] 18/9/2008 10:27

pt, Rob, thanks for your comments - do you think I've left out anything of significance (positive or negative)?

Toggle, interesting you should post that because they have actually moved much closer to my 10 point plan in terms of their actions and how they now talk about the company. It's for that reason I think they are worth a punt today.

They have pruned their release schedule massively and have cut out almost all the chaff. I may argue over whether its worth keeping champ manager but it's a debate rather than a clear mistake. If you look through the rest then the only thing which is a bit disappointing is that there's not going to be a Deus Ex until 09/10 and the next Hitman isn't untio 10/11.

They've got rid of the whole mobile operation - licensing it all to EA.

They've sold off their US publishing business to Warner.

They've got rid of Pivotal (sorry, guys).

The only real mistakes I think they're making now are keeping Montreal and releasing TRU at the wrong time - particularly in N. America where it isn't even strong ip any more. Montreal isn't fatal and if they can navigate successfully through the TRU release then I think they're in with a chance.

That's why (apart from a punt) I think it's "wait and see" for them. Wait and see how TRU performs and then you'll know if it's worth a proper investment.

[togglebrush] 18/9/2008 07:40

Below is DarrenS 10 point plan which he updated in March 2008. My comments are in colour. From earlier comments it is obvious we don't agree . Make your own mind up.

I was just comparing yesterday's statement to my 10-point plan. Comments added:

1. Cancel all casual game projects - nope, they've gone and set up a special division. IF casual games cancelled the income to date, except MMO and back catalogue, would be zero. Casual games appear to be the big growth area for SEG and other publishers (UBI etc).

2. Cancel everything that hasn't a chance of 1m+ sales - nope - not totally clear but the fact that Battlestations, Champ Manager remain means they haven't done this. Project list is in the header and having axed 14 projects they believe the rest are viable. We will see.

3. Cancel all mobile projects - nope, they've gone and set up a special division. Deal with Electronic Arts who seem to have faith in it. Final Results "We have also entered into a strategic mobile relationship with Electronic Arts for the exclusive multi-regional distribution and licensing rights to certain Eidos titles across mobile devices."

4. Cancel all MMO projects - Not clear, but possible. AOC has sold 1 million units to 30 June and continues with even a cut from the time cards.

5. Sell off all assets related to the above - Not really applicable given the above. Sale of Spanish distributor for 2.9 million recently agreed.


6. Sell off US publishing business, sell games to US publishers on a guarantee+royalty basis - No mention, so I assume not. US operation is now with Warner Bros. Final Results " We have identified the areas we need to focus on in order to achieve both our short and long-term goals. Our North American partnership with Warner Bros. is key to maximising our presence in this crucial market. This agreement became effective on 23 May 2008 and we are working with Warner Bros. in a number of ways, including the delivery of high-impact channel marketing and PR campaigns to benefit our forthcoming product releases in North America including Tomb Raider: Underworld, and Warner Bros.' own intellectual property, Batman, in our recently unveiled game Batman: Arkham Asylum."

7. Sell/Close all studios except Crystal Dynamics, IO (sorry Pivotal, Beautiful, Montreal). Eidos Hungary gets a reprieve if B:M2 looks like it could be a 1m+ seller. Eidos Sweden - no idea what you guys are doing but I can't think of a good reason to keep you. Not clear - but certainly they haven't closed Beautiful or Montreal. In fact they've moved staff out there. Pivotal down sized. Tax reasons are why Montreal is favoured. Crystal Dynamics and IO are said to be recruiting for new projects.


8. Raise enough money through a placing or rights issue to get them through this Christmas. No - not achieved. Open Offer and Placing was well managed and successful.

9. Release TRU well before the Christmas "window of death" No, they actually mention a Christmas release. Arguments for this have been made by the company.

10. Cut all associated fixed costs (i.e. staff) to be in line with the new "fighting fit" release schedule Yes - sort of. I saw a more than 25% reduction but that's because I would have taken a much bigger axe to the schedule. First AAA release would possibly be November, and with only the back catalogue to pay staff, I would suggest a more lean staff would all be sacked before summer.

Now, not to say that I'm right and they are wrong but they were certainly a long way away from what I thought they should do. Consequently, and even ignoring the funding issues, I won't be investing in SCi on the basis of the plan.

I guess that was obvious given my post 10850 yesterday but even on further reflection it remains true.

I think it's really important at times like this to make sure that you aren't passing up a massive opportunity so that's why I've thought about it further following my reaction yesterday. However, I still can't see any reasons to buy it apart from the possibility of a bid, but it could just as likely be broken up by receivers and sold off cheap leaving shareholders with nothing.

Company and DarrenS seem to differ in so many ways

[uncle-bob] 17/9/2008 21:55

Agreed. Darren makes an intelligent reasonable post - not even a bearish one - and the schoolkids throw a hissy fit. "Attention seeker"? Isn't that someone who posts ten times per hour and has nothing intelligent to contribute at all?

Anyway, I too am "waiting and seeing", so there!

[pt725] 17/9/2008 21:40

Hi Guys,

Darren is dead right, very fair and balanced in his analysis.
Critics of his analysis have their head in the sand. If TRU bombs , then goodbye Eidos.

[the crypt] 17/9/2008 09:06

LAFFING BOY WILL LAFF-
THIS WILL END UP TRUE BLUE

[the crypt] 17/9/2008 08:52

they keep on and on diluting the share capital. this is shocking - remember rage?