Feeds

Eidos reverses profit warning

Despite rumblings from the Core

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Games publisher Eidos has said that the problems it had getting Tomb Raider: Angel of Darkness out before the end of its previous financial year won't affect the company's performance after all.

This after making such a song and dance over the fact that it would. But then the news does appear to be being used to mask tough action being taken at the company's Tomb Raider subsidiary, Core Design.

On 27 June, the company issued a profit warning. "While some units may ship within the current financial year [ending 30 June], up to one million units will ship in July, the first month of the next financial year," it said, and added: "This has led the Board to significantly reduce its expectations for profit before tax for the financial year."

Not any longer. Today, Eidos said: "It will now meet the original market expectation for operating profit pre-goodwill for the financial year to 30 June 2003 that prevailed prior to its announcement of 27 June."

So that's all right then? Well, not necessarily. The key phrase to note is 'pre-goodwill', so accounting for that may take the company's final profit below where it might have been had the Tomb Raider release gone to plan.

In the end, says Eidos, only 500,000 Tomb Raider units failed to ship ahead of the 30 June deadline, reducing the hit the company was going to have to take on FY2003 profits. It also says that "strong sell through of products shipped in the last quarter and increased license activity" played a part in covering for the lost Tomb Raider sales.

Eidos will report its FY2003 results on 4 September. The final figures will also be boosted by a £11.4 million ($18.52 million) tax repayment courtesy of the Inland Revenue. That will lead to a "significant increase in net profit", Eidos said.

While that's good news for Eidos shareholders, its staff at Core Design are unlikely to be too happy. Following the Tomb Raider release debacle, Eidos Development Director Jeremy Heath-Smith resigned from the company, and relinquished his role as Core Design Managing Director.

Core Design, a wholly owned Eidos subsidiary, developed the Tomb Raider series in the first place. Now it has had responsibility for the games taken away from it - Eidos will "transfer development of the franchise to its Crystal Dynamics studio in the US".

After five games - the most recent widely criticised as poor successors to the first ones in the series - Core is probably sick of the whole franchise and glad to see the back of it. But the Eidos' boards ire doesn't end there.

Following a "review of the Tomb Raider franchise and the studio operations of Core Design", Eidos will "now be evaluating the Core Design studio's on-going direction and contribution as part of the Group's overall development capabilities". The sounds suspiciously like a 'heads will roll' statement, though whether to appease shareholders or to address real problems at Core, we can't say. ®

Related Stories

Tomb Raider developer chief quits Eidos board
Eidos issues profit warning

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.