Feeds

Eidos reverses profit warning

Despite rumblings from the Core

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.