VCI has become the latest multimedia publisher to restructure its operations as it struggles for profitability in a crowded and fragmented market. It is re-integrating its Watford-based software unit with its video business in London.
The length of time it has taken VCI Software to convert its product portfolio from floppy disks to CD has also adversely affected profitability, said MD Paul Watts, with the price of full-price floppy titles falling by 70% over the year.
Software marketing director Julian Moore has become a casualty of the move, leaving the company after 11 months.
"The move gives us access to the resources of the video business without increasing overheads," said Watts.
"It's been a difficult year trying to make the business grow to the level we want." The restructure is not a retraction of VCI's software business.
It intends to have a CD catalogue of 90 products, including a 34-title jewel case range, by the end of the year.
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