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Last Updated: Friday, 29 February 2008, 09:40 GMT
Revamp hits Tomb Raider firm jobs
Lara Croft
SCI bought Lara Croft-owner Eidos in 2005
SCI Entertainment, the owner of the Tomb Raider games, has announced steep losses and a major business revamp.

The computer games maker said losses in the six months to the end of December were 81.4m ($161.6m) compared with a 17.9m loss a year ago.

New chief executive Phil Rogers cancelled 14 projects and announced 260 job losses - 25% of the firm's staff.

He also said the revamp could cost up to 55m and added that it might have to sell shares to cover the cost.

'Ineffective structure'

Shares in the firm plunged 22% after the announcement.

"Our quality has slipped below acceptable standards," the company said in a statement.

"Through disappointing game development and working within an ineffective operating structure, we are failing to realise the commercial return our creative ability."

Mr Rogers took over from the company's founder, Jane Cavanagh, who resigned in January.

Lara Croft

The company has been battered by poor results, failing to deliver new games on time and the collapse of takeover talks.

SCI hit trouble last July when it warned that profits would not meet expectations.

It began talks with potential buyers in September, but in January announced those discussions had collapsed.

It also delayed the release of four new games until the final three months of 2008, including the postponement of the latest in the Tomb Raider series.

SCI bought Eidos, the owner of Tomb Raider and its heroine, Lara Croft in 2005.

SEE ALSO
Chief of Tomb Raider firm quits
18 Jan 08 |  Business
Competition hits Lara Croft firm
24 Jul 07 |  Business
Lara Croft firm swaps bid support
07 Apr 05 |  Business
US video games sales hit record
18 Jan 08 |  Business

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