Eidos: lossy business year 1999
In the business report for the year 1999, the video game manufacturer Eidos Interactive on 13. June 2000 a loss of 26.8 million. Pounds recorded. This is a previous year’s level of 39 million. Pounds against. As the reason for the ruckle, the management gives market upgrades.
The message follows a series of warnings about profit breakdown in the last 6 months. The company was hit particularly hard by the random to sold Tomb Raider4 games. The expected Christmas numbers were not so arrived as expected. On the 24th.3.00 was the price of the company broken by 30%. The largest share of profit made the sale of Shares at the company OptiCom ASA in high £ 80.2 million. the end. In the spring year, the missing turnover had to be reduced to lower demand for development problems with the new game systems PlayStation2 (Sony) and Dreamcast (Sega). In contrast, the Financial Times gave Germany "narrow product range" the company, with Lara Croft as a single pillar, blame.
The current situation of the company is not only symptomatic in Eidos, according to the company name industry, but for the whole industry. Both SEGA and NINTENDO had to accept profit ranges in their annual reports. Now the entertainment software industry also seems to get the problems of console manufacturers for traces. As CEO Mike McGarvey emphasized today, the whole market is in motion, "Not just a company".
Challenges of three new consoles for this and next year: Sony’s PlayStation2, Nintendos new game system with the code name Dolphin and Microsoft’s X-Box console held the industry in Limbo. Consumers want to wait with additional acquisitions until the new systems are on the market. An additional generation of revenue expectations are the consequences of the superhoused costs for research and development for the new play platforms, especially in the case of the Sony Playstation2. Eidos did not want to leave a comment on the proportion of research spending on the negative result. Instead, refer to a DataMonitor study, according to which the value of the market will increase with the introduction of online game consoles to $ 30 billion until 2005.
With a strategy-oriented on online platform and other cooperations in offline entertainment, Z.B. Moving the video game Tomb Raider with Oscar Price Brace Angelina Jolie in the main role, as well as other cross-media agreements with Hollywood and television productions, analysts expect the situation to be compensated again. However, the company still needed until the end of the year to write black numbers again. At the moment PlayStation games with 60 to 70% were still the Lowen share of sales.