After nearly 25 years in operation since its founding in October of 1988, British developer Eurocom has announced that “business has ceased to trade.”
Eurocom’s most recently released titles, 007 Legends and Harry Potter for Kinect, will be the studio’s last due to an increasing difficulty in signing game development contracts with major publishers, as well as a result of what Eurocom says has been “a steep decline in the sales of console and PC games.”
Eurogamer received an in-depth statement from Eurocom detailing the matter of its closure, which follows below in full:
“Today Dean Nelson, from Midlands business advisory firm Smith Cooper, was appointed Administrator of Eurocom Developments Limited, who have been experiencing financial difficulties due to expected contracts being delayed, which has resulted in a severe cash flow shortage.
“Since 2008, there has been a steep decline in the sales of console and PC games, which has led to a severe contraction in the number of new games being commissioned from global publishers of entertainment software. The company has also faced intense competition from developers in countries with lower costs or those subsidised with generous games tax credits.
“As a result of pressure from HMRC, the directors of Eurocom filed a Notice of Intention to Appoint an Administrator at Court in order to allow time for attempts to save the Eurocom business. The Administrator and the company’s directors have been negotiating with customers surrounding new contracts to develop console games, however these contracts could not be secured in time and due to insufficient funds to pay outstanding wages, Eurocom today entered Administration.
“As a result, the remaining 42 employees have been made redundant today and the business has ceased to trade after some 25 years, having grown organically to become one of the largest and most prolific independent console games developers worldwide.
“The Directors of Eurocom would like to offer their heartfelt thanks to all their staff that have been made redundant at this difficult time, and show their appreciation of all of their hard work in consistently delivering exceptional games.”
Dean Nelson, one of the administrators added, “Whilst this is unfortunately the end of the established Eurocom business, efforts are continuing behind the scenes to attract interested parties to Derby in order to help fill the void left by Eurocom. We are still hopeful that there will in the future be a specialist software business operating in Derby in place of Eurocom, but the focus will be completely different and therefore this is sadly the end of the console games development business.”
Eurocom was founded in 1988 and went on to work on over 60 games including original titles, licensed properties and ports. You can get details on every last game, with descriptions and videos, at the studio’s website.
It’s very tough to accept the closure of a game development outfit as historied as Eurocom, but the studio’s dependence on contract work with publishers such as Activision, Warner Bros. Interactive, Disney Interactive and EA, as well as various movie houses, was always going to become more and more dicey for the exact reasons outlined in the studio’s statement above.
We wish all the very best to everyone from Eurocom who now find themselves unemployed heading into the holidays.