10tacle Reports Sales Jump, New MTV Virtual World

Officials from 10tacle Studios (GT Legends, Neocron) have announced details of the company’s financial results for 2006, reporting a 64 percent growth in sales over the previous year, as well as announced a partnership with Viacom Germany to launch a MTV branded online virtual world in 2008. While the German developer and producer previously reported its preliminary (un-audited provisional figures) results for 2006 as reflecting a rise in sales by 62.25 percent, the actual annual results of €29.285 million ($39.2 million) represent a 64 percent rise over the previous year's €17.896 million ($23.9 million). At the same time EBIT (earnings before interest and taxes) increased by 180 percent to percent to €4.708 million ($6.3 million), up from €1.684 million ($2.2m) the previous year. While perhaps most wildly recognized for PC titles such as GTR and Warfront: Turning Point, 10tacle Studios recently announced that the company acquired the Ready 2 Rumble Boxing franchise from Midway, with Japanese firm AKI Corporation – best known for the first two Def Jam games and a number of wrestling games on Nintendo formats – signed as its developer. In a separate but related statement, 10tacle Studios and Viacom Germany, owner of MTV Germany, today announced plans to jointly release a new online 3D virtual world “using various brands and industrial property rights belonging to the music television station.” The new internet portal, which will include access to MTV related content as well as online games, is expected to debut in 2008. 10tacle Studios expects to realize total revenue of approximately €20 million ($26.7 million) from its contract production of the project as a whole. In addition, the company plans to set up additional in-house resources dedicated to the marketing of this project, which is expected to generate “significant revenue” for the company in 2008 and beyond. 10tacle Studios will be in charge of the technical implementation and operation of the upcoming virtual world, while MTV will handle target group communication and editorial content. The licensing agreement between the companies will initially exist for a five year term, and include an option for extension. Initially, the license will cover Germany, Austria and Switzerland, while additional countries in Europe and Asia are expected to follow shortly afterwards.