
Acquisition talks ongoing for UK publisher; unit sales up 14 per cent
SCi’s latest interim management statement states that the company remains in talks over a possible buy-out, while outlining its latest quarterly sales results.
For Q1 FY ’08 (July 1st to September 30th), SCi unit sales were up 14 per cent compared to the previous quarter, with notable success Pony Friends a highlight.
The statement also revealed first week sales of Kane and Lynch: Dead Men to be positive, which expectations high that the US launch of the title over the Thanksgiving period would yield good results.
“Over the first quarter we sold games on a variety of platforms including Microsoft's Xbox 360, Nintendo's DS and Wii, and Sony's Playstation2 and PlayStation3,” says the statement. “Whilst our units sold increased year-on-year this was offset by lower pricing due to the last-generation to next-generation console transition and product mix.”
“The contribution from publishing products was lower than the first quarter of FY07 which included the launch of the Just Cause franchise. The contribution from distribution was higher than the first quarter of FY07 with the current year benefiting from a better overall product mix.”
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Comments
Publisher consolidation is inevitable.
The fixed costs of making a game are so high and the unit variable costs so low that there are huge economies of scale in game publishing. It is inevitable, therefore, that the industry will distill into a handfull of global publishers. It is almost inevitable that these will be the existing big global media companies like News Corporation, Warners and Vivendi.
(Caveat-the exception here is niche publishing and the whole thing could be changed by online distribution)
So there is no future for small publishers.
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