At first, we’d like to point out that part of the following information is only based on rumors and unofficial sources. We apologize for possible mistakes or incorrect information, thank you for understanding!
What is going on with 10tacle?
They are going through a serious crisis. According to what we know from official sources, back in 2007 everything was okay, but since January 2008 there has been a heavy plunge in 10tacle stocks. From its former high of 14€ the value of the share has dropped down to 2 € and even reached a historical low of less than 1€.
How come? What happened?
Everything started off well with a revolutionary financing plan: They managed to gather more than 14 million through Game Fonds No. 1 and 2. Thus they financed previously released games such as GT-Legends, GTR 2 and Black Buccaneer. By doing so, two main problems evolved:
- on the one hand the released games only sold middle-rate (GTR 2 approx. 30,000; Jack Keane approx. 30,000) or sold badly (games such as Warfront: Truning Point or Panzer Tactics didn‘t even reach the top 100 in Germany)
- on the other hand very expensive games have never been published (e.g. Elveon - it is said to have sucked up more than 10 million € within 4 years and still isn’t anywhere near completion.)
So the overall problem was the company’s great ambition and their pursuit of very specific goals, which they couldn’t achieve. 10tacle spent the last years buying up various studios, however, up until now, most of these studios have failed to successfully release a single game.
The real crisis started in March 2008. Due to the significant drop in stock prices and unpaid accounts of financiers 10tacle couldn’t publish any sales figures for 2007. Hence, the long-time CEO Michele Pes was replaced by the new CEO Joachim Magin, formerly working for Pro7. As a result of the new policy of economic and restructuring measures, 25 % of the employees were made redundant. 10tacle announced that they would henceforth concentrate on the development of the games and pass on marketing and publishing to other companies. The planned acquisition of „The Games Company“ was cancelled.
What does this mean for 10tacle’s current studios and games?
10tacle Slovakia: The “Elveon” studio has been irrevocably closed and all its staff members have been made redundant. According to Pes the developer wasn’t able to offer the demanded quality. Elveon should have been released by mid-2007. Another Studio "Climax" is rumored to take over the developement of "Elveon"
Reakktor Media: The Neocron makers are currently working on the MMO „Black Prophecy“. There haven‘t been any news for months (planned release by the end of 2008).
10tacle Belgium: Rumors say the development of „Totems“ will be 12 months delayed from the intended release date. At the moment there is no information on the situation in Belgium.
Blimey! Games: The GTR makers are working on a „Ferrari“ project. No further news for the time being.
10tacle Asia: They have been working on (an) MMO project(s) for years. So far no release and no news.
10tacle Mobile: Two published mobile games. At least one more under way.
Stormregion: „ Codename Panzers: Cold War “ should have been released by March 2008. Total silence ever since. According to Wikipedia and a message written on Stormregion‘s forum the studio hasn‘t received any money from 10tacle since April. Rumor say that the studio was closed in June. The game „Panzers“ is said to be completed since May, yet it is unsure whether it will ever be released.
So, according to these rumors, two big studios have already been closed and the situation of the others is unsure. The future of big games such as „Totems“ and „Elveon“ is completely unknown.
There is no way to tell whether 10tacle will overcome this financial crisis, the worst is to be expected. At the beginning of July 10tacle started to take new measures. Refunding has been initiated through „convertible bond and recapitalization“. They hope to acquire approx. 6 million € with new shares to ease their precarious financial situation. It is not sure whether this action will turn out to be successful.
10tacle crisis forum discussion
Further links regarding the topic (German only):
10tacle investor relations
Gamestar article
Heise.de article
Krawall.de article
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