DOES ZOO LOOK LIKE A TEN BAGGER-CAN ANY OF YOU EXPERTS LET ME KNOW HERE PLEASE?

Chef...there is a crucial difference.
ZOO very cleverly spotted a way to make a dvd act in a way that "simulates" interactivity. They patented this "wrinkle" and have had some success in obtaining a premium royalty from 3rd parties for the privilege of using it (we can dispute the value in monetary terms from 3rd parties at a later point)

The new formats do not need ZOO's "wrinkle", they are designed to be interactive, so even if ZOO come up with an authoring package it will be competing against standard pricing for authoring packages, and that means no royalties...and Sonic is cheap and already in place with all the reasonable+ size authoring houses.

Even worse is that ZOO have no in house experience with java so they will be starting from scratch and a lot of new players will be coming into the sector due to the maturity of the languages being employed, so even Sonic's prices may come under threat.
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Doesnt take a genius to work out that isnt good news for ZOO.

So whats left:
1. try and get some money out of des before it becomes redundant, but the shift starts in the Spring.
2.Develop interactive games but forget about selling des....havent been succesful winning contracts so far.
3.Try and compete in high volume low margin authoring software on the new formats but from scratch and against absolutely dominant players.
4.Try and make Hothouse work as a "standard" developer contracting for other companies....we both know how tough that is.
5.Try and become a profitable publisher of low cost games just as the console cycle is changing and margins will be under extreme pressure.

Choose any combination from above but keep in mind their very substantial headcount, slightly odd management and habit of losing money.....not forgetting they are currently valued at 30 million not 5 million.

As to "zoo must be doing something because they are not saying anything".....if I had a fiver everytime that was posted on a sinking stock, I would be an even happier man.....just look back to previous RNS when they launched updates, seen anything recently?

Chef....SEG had turned and was on the bounce back....ZOO is still falling and the forward news is bad not good, a slight difference eh.

But at the end of the day, your choice :)