Why re-branding was the best possible move for a cornered SCi

Big tectonic shifts in the world of game branding yesterday as SCi announced that it had officially adopted the name of its subsidiary Eidos. The move marks the latest point along the firm’s recently turbulent timeline as it has struggled against considerable losses, mass-layoffs, project-axing and rumours of acquisition.

The change is a macabre signifier of the company’s general finances and business prospects. However, it is only reflective of an industry which is, like the rest of the world, sailing the stormy seas of the current economic downturn. However, while other struggling firms are experiencing mergers and the wider consolidation of the industry it is interesting to see SCi react through the compounding its group brand.

As a publisher, SCi is (or was) defiantly on the back foot in terms of brand awareness, especially when compared to EA, Activision-Blizzard, THQ – and not to mention the big three console manufacturers! The utter lack of brand salience along with its weak commercial performance had left the brand without a leg to stand on.

Eidos, however, has a much stronger brand. In terms of the culture of videogames, Eidos is (along with Codemasters, Lionhead and a number of others) one of those historically quintessential British gaming firms. What is more, it has incredibly strong associations with a number of highly iconic and beloved franchises, not least of all the recently reinvigorated ‘Tomb Raider’. It stands to reason then, if the company wanted to create a greater sense of brand unity that Eidos would be the name to go with. It simply carries more weight than SCi probably ever could (at least, not without great expense).

Strategically, this is probably the best move the company could make at this point and in reaction to the economic challenges facing the industry as a whole. It is important to remember that brands exist entirely within the minds of consumers, they are perceived and can live with all vigour regardless of what is happening on the balance sheet. In fact, should any rumours of acquisitions materialise then it will be the strength of the Eidos brand and its IP that props up the company’s overall value.

It is not unknown for failing companies to be bought up for considerable sums based entirely on the brands they possess. At the most fundamental level, however, it is not the brand as such that is being bought, or that generates such brand equity. But the relationship and that little piece of mental real-estate the brand owns in the consciousness of consumers.