However, says Infogrames: "The SCi Board has declined, at this stage, to entertain Infogrames' offer."

Infogrames is still raring to go on the bid, though, saying that it has "sufficient resources" to satisfy the offer, and adding it has also "secured commitments" that will help fund SCi's potential working capital requirements. "Importantly," the statement adds, "Infogrames is in a position to move expeditiously with its proposal."

The regulatory announcement suggests the door's still open on the proposal, though there are no guarantees:

"Whilst Infogrames has been considering a range of options, including but not limited to a potential merger with SCi, there can be no certainty that any offer will be made for SCi," said the statement in part, concluding with, "A further announcement may be made, if and when appropriate."

SCi recently got a shot in the arm in the form of a $120 million bailout from investor Warner Bros.,who increased its stake in the company to 20 percent. In the process, SCi gained access to couple WB licenses (Looney Toons, The OC, the Batman comics) — and, apparently, lost 25 percent of its staff as well as some current projects (flagship titles like Tomb Raider, Hitman, Deus Ex and Championship Manager are safe).

When approached for questions, a rep for SCi said he was unable to comment on the company's current business.

Eidos' parent company announced earlier this year that it would be laying off 25% of its staff and killing fourteen projects, focusing on "cornerstone" titles like Tomb Raider, Hitman, Championship Manager and Deus Ex.

Layoffs at Eidos in Light of Warner Bros. Deal? [1UP]
Lara Croft creator SCi gets cash boost [Reuters]

"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," Phil Rogers, Chief Executive of SCi Entertainment Group said, in a prepared statement. "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."

A chief part of that plan is a fundamental change to the way the company does business with SCi shifting from the current centrally-controlled development and publishing model to a studio-led one, similar to the labels model that EA moved to last year.

Under the new structure, SCI would have studios based around "cornerstone products" like Tomb Raider, Hitman, Championship Manager and Deus Ex. The company is also creating an Eidos PLAY studio which will "fuse together casual and new media resources." Finally, production services will form part of the studio group and be relocated to Montreal from London.

I blame the Wii... well that and a company that has essentially been living off of three franchises for nearly two decades.

SCi Corporate

Business review and half-yearly financial report for the six months ended 31
December 2007

COMPANY TO BE RE-STRUCTURED

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.'

...more in-depth information about the game, exclusive interviews and exciting behind-the scenes footage.

Mass Effect on SCI FI [scifi]

Ubisoft confirmed today that they were at one time interesting in picking up Lara Croft publisher SCi, but are now totally over her the company and want nothing to do with purchasing it.

"Ubisoft has no intention to make an offer and will not make an offer on SCi." Ubisoft reps told Thompson Financial News. Ouch, sounds like someone got hurt.

Ubisoft Ends Interest in Acquiring SCi [Gamasutra]

SCi Entertainment, now officially going down in flames as they confirm a net loss of GBP 29.1 million in the past fiscal year, say that Ubisoft isn't the only company interesting in snatching up the company and their rights to the Tomb Raider series.

Electronic Arts, an unnamed Chinese company and Time Warner are all rumored to also be preparing bids for the company.

Analysts blame, in part, the slow build up for the PS3 install base as part of the reason SCi is hemorrhaging so much cash.

"The larger-than-expected provision against capitalised development costs reflects the fact that the installed base for Sony's PS3 has taken longer to build than expected," said Panmure Gordon analyst Richard Newboult, maintaining a buy rating. "If a significant price reduction for the console boosts sales, then there is a good chance that at least some of this provision will prove to be unnecessary."

Yes, thats entirely why SCi is going down in flames... the PS3.

3rd UPDATE: SCi Receives More Bid Attention, Reports Fiscal Year Loss [CNN Money]

Our future next generation console titles include new versions of Tomb Raider, Hitman and Championship Manager plus exciting new IPs including Kane & Lynch and Crossfire. In the light of the launch of the Sony Playstation 3 in North America in November 2006 and its planned European launch in Spring 2007 we are assessing the timing of when to launch these titles on the appropriate next generation platforms.

Since we already know that Tomb Raider: Anniversary and a next-gen Tomb Raider are in the works, this shouldn't be a surprise. I'm in for Anniversary and hope that the next Lara outing will keep the quality up. Michael McWhertor

Warner Bros. Entertainment has announced that it will be investing in Eidos' parent company SCi Entertainment Group. The investment will represent 10.3 percent of the company's enlarged share capital. As part of the investment Warner Bros. has granted licenses to some pretty major properties to SCi, including Looney Tunes, The OC, and the comic book version of Batman, which means we can look forward to an all new bad Batman game soon! YAY!

"Investing in SCi further solidifies our commitment to the rapidly growing interactive and gaming space," said Kevin Tsujihara, President, Warner Bros. Home Entertainment Group. "This deal is consistent with our core strategy of delivering high quality entertainment based on some of the world's best-loved brands for all formats and channels. We look forward to working with SCi to build games the fans of these brands will truly enjoy."

Full press release after the jump

WARNER BROS. ENTERTAINMENT TO INVEST IN SCi ENTERTAINMENT GROUP, LEADING VIDEO GAMES PUBLISHER

WARNER BROS. HOME ENTERTAINMENT TO LICENSE KEY PROPERTIES FOR GAME DEVELOPMENT AND PRIMARY DISTRIBUTION AGREEMENT IN THE UNITED STATES

Burbank, Calif., December 15, 2006 - Warner Bros. Entertainment Inc. will make an investment in SCi Entertainment Group plc, ('SCi' Epic code: SEG) the parent company of publishing label Eidos Interactive Ltd, representing 10.3 percent of the company's enlarged share capital. Additionally, Warner Bros. Home Entertainment Group and SCi have entered into an agreement for licensing and distribution of games based on select Warner Bros. Entertainment properties. The investment, licensing and distribution agreements are all pending SCi shareholder approval.

A part of the Warner Bros. Home Entertainment Group, Warner Bros. Interactive Entertainment (WBIE) has granted the licenses to SCi for the comic book version of Batman, the Looney Tunes, select titles from the Hanna-Barbera catalog and television properties The OC, Loonatics Unleashed and Legion of Super Heroes.

In addition, Eidos and Warner Bros. Home Entertainment Group have entered into a primary distribution agreement under which Warner Bros. Home Entertainment Group will provide warehousing, logistics, merchandising and media buying services in the United States to Eidos. Eidos will continue to run, through its US publishing office, all other aspects of its US operations including manufacturing, sales, marketing and PR.

"Investing in SCi further solidifies our commitment to the rapidly growing interactive and gaming space," said Kevin Tsujihara, President, Warner Bros. Home Entertainment Group. "This deal is consistent with our core strategy of delivering high quality entertainment based on some of the world's best-loved brands for all formats and channels. We look forward to working with SCi to build games the fans of these brands will truly enjoy."

Jane Cavanagh, Chief Executive of SCi, said, "These agreements represent a further step in SCi's development as one of the world's leading publishers of interactive entertainment. The licensed properties extend and strengthen our product portfolio through globally recognized titles such as Batman, Looney Tunes including brands such as Bugs Bunny and the classic Hanna-Barbera catalogue including brands such as Tom and Jerry.

"The properties also include content with a broad demographic appeal. Significantly, the partnership with Warner Bros. Home Entertainment Group in the United States links us to the distribution network and buying power of one the world's largest media companies. The additional investment provides us with the firepower to accelerate growth initiatives such as increasing our development capacity and our new media and online strategies."

Warner Bros Interactive Entertainment has licensed the rights for selected intellectual properties to SCi. SCi's publishing label Eidos will develop videogames based on the properties. The licenses are:

Batman. The license enables Eidos to create games based the on comic book version of the DC Comics' renowned super hero.

Looney Tunes. Eidos will create games using the library of Looney Tunes characters, including Bugs Bunny, Daffy Duck, Road Runner and Speedy Gonzales and more, for handheld platforms.

Hanna-Barbera catalog. Eidos will develop up to twelve games based on a number of individual characters in the classic Hanna-Barbera catalogue including Tom and Jerry, The Flintstones, Wacky Races, Yogi Bear and Huckleberry Hound.

The OC. The license is for the interactive rights to the long running global TV series The OC, based around the lives of teenagers in Orange County, California.

Other animated properties. Eidos has also signed license agreements relating to the children's animated TV programs, Loonatics Unleashed and Legion of Super Heroes.

# # #

The paper quotes Dr Versitz Piroska, the lawyer acting for MGE and Mithis, as saying: "A number of complaints have been filed with the Budapest police with regard to the illegal removal of software and hardware connected to the Battlestations: Midway, Joint Task Force and other games... [with complaints of] unlawful penetration into Mithis' computers, copying, sabotage and deletion of games' data and infringement of IP rights."

According to The Sunday Times, Budapest police have confirmed the basic details of the story, indicating that two investigations are proceeding on two separate subjects: "on suspicion of breaching of authorship rights law."

Today, SCi seemingly issued a statement saying that the newspaper may be confused, but doesn't appear to actually deny what the newspaper reported.

In a statement given to Gamasutra by SCi head of communications, Chris Glover, the company suggests that The Sunday Times has confused the games Battlestations: Midway and Joint Task Force as a single title and that the majority of complaints referred to in the article do not therefore relate to Battlestations: Midway. Indeed SCi suggest that there ware no specific allegations against the company.

SCi has admitted that in November 2005 the company exercised its contractual right to take over development of the game, following dissatisfaction with MGE. According to SCi, MGE then demanded compensation and when none was forthcoming made an official complaint to the authorities in Budapest, relating to the ownership of intellectual property rights.

Jane Cavanagh, CEO of SCi Entertainment said; "We would never normally comment upon such relatively minor matters and have only done so to clarify the position. We wish to correct what we believe are a number of misleading statements and material inaccuracies, particularly in this instance as allegations raised in the article appear to relate to a totally different and unrelated company or companies."

In my experience, when a company is under investigation for illegal hacking, theft and sabotage and they didn't do it, they usually just say so.

Very odd stuff going on over there. Brian Crecente

Breaking: SCi Denies Theft Reports on Battlestations: Midway [Gamasutra]

British published SCi has announced that it will extend licenses for Hitman and Tomb Raider to a whole slew of gambling franchises, both online and in delicious meatspace:

Lara Croft and Agent 47 will be adorning gambling products, including video slot games both online and offline, created by gambling software provider Microgaming, in a deal which extends Microgaming's previous licensing of the Tomb Raider brand.

As if Lara wasn't enough of a slot already. Although this raises a question I've had for a while now: is there a sizable crossover between we video gamers and who I like to think of as "mundane" gamers, those who play Solitaire and Bejewelled and online slot machines? I dabble in dinky games, especially when there's nothing else around, but always figured folks who played Tomb Raider and comparable titles were unimpressed with dorky online casinos. I know I am.

(as an aside, the results I got when Googling "Lara Croft slot" were far less interesting than I expected.) Eliza gauger

More [GamesIndustry.biz]