3DO Hoping to Rebuild
3DO announced recently that it has borrowed $10 million from IIG Capital, a transaction that is bringing optimism to the somewhat staggering company. 3DO has already used $4 million of that $10 million to pay for the production of upcoming games. These include Street Racing Syndicate, Four Horsemen of the Apocalypse and Army Men: Sarge's War among others.
"We are emerging again as an operating company and have passed through some critical stages," said CEO Trip Hawkins. "We have proven that we can make and deliver quality, best-selling games on schedule, with more to come ...We believe that we have now attracted enough outside financial support that we can pursue our goals of becoming cash-flow positive and increasing profit margins as we progress through the year."
With the announcement, 3DO has also cited the success of High Heat 2004. Apparently, the game was the 5th best selling PS2 game and 2nd best selling Xbox game during the week of its release. However, these figures have come from an unknown major retailer, so it's difficult to know how official the rankings are. At any rate, 3DO is very pleased with its release and its numerous upcoming projects.
"We are impressed with 3DO's progress, plans, and management," said Martin Silver, Managing Partner of IIG Capital. "With the successful launch of High Heat Major League Baseball, 3DO is off to a good start this year and we are excited about being partners in the growth of the business."