Eidos racks up £99.1m in losses

London-based publisher puts troubled year of "transformation" behind it, recommits to releasing Tomb Raider Underworld in November.

It's fair to say that Eidos' parent company SCi has seen better times. Today the company posted its financials for the year ended June 30, 2008, and revealed a preliminary adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of £99.1 million. That's significantly worse than the previous year's loss of £13.3 million, and was described as the "result of necessary transformation of the business" and "reflecting major transition and change during the year."

It's been a tumultuous year for the publisher, based in the south London suburb of Wimbledon. Jane Cavanagh quit as CEO in January amid pressure from shareholders. After announcing plans in February to slash 200 jobs and 14 games currently in development, SCi raised £60 million in capital by issuing 171.6 million new shares in April to help fund business activities in the short term.

CEO Phil Rogers described 2008 as "a year in which we took decisive action to transform our business," and confirmed that Tomb Raider Underworld would be swinging onto consoles this November. Rogers also confirmed that Just Cause 2, Battlestations: Pacific, Championship Manager 2009, and Batman: Arkham Asylum would be arriving in 2009, as expected.

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Former staff writer for GameSpot.co.uk, now marketing guy for a certain major online retailer....

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Discussion

75 comments
nathace
nathace

need to buck ya ideas up to stay alive. ya need fresh new stuff like sum RPGS or sum FPS

Licker5121
Licker5121

When in 2009 for Arkham?WHEN!I want it now!Sorry,it just looks awesome.

Strigidae
Strigidae

Crap... I hope they can recover... where else will we get our serving of gorgeous intellect brunettes and bald cold contract killers.

casper008
casper008

I have all Tomb Raider games and whether underworld is good or not i'm buying it. (Don't care for reviews, i'll do my own review after i play the game). If they come out with another tomb raider in 2009 i will buy that one and the one after that and so on :) I hope the company does well and may Lara Croft live on forever.

Old_Gooseberry
Old_Gooseberry

if eidos falls, what we got, EA left? lol, good times will be had by all!

DamageIncM
DamageIncM

This Tomb Raider is going to be a great game too though. And we can expect it to be great for a couple more releases until maybe after a couple there will be a bad one again. Perhaps they'll keep raising the bar for themselves each time though, to prevent the same "mistake" as with the "previous generation" of Tomb Raider games.

king_bobo
king_bobo

This is a shame. Eidos always makes really original games and deserves to stay afloat.

Krusnikzero2
Krusnikzero2

I hope this doesn't affect the xbox release of AoC

boyjackal
boyjackal

Why Tomb Raider? well don't get me wrong Lara is Hot and I know they will make her even more Hotter but... Hitman5 will be the one to save you.....¬!

kavadias1981
kavadias1981

Development costs really seem to be killing the companies that we know and love. IMO this is going to be the final generation of games consoles. If they get even more powerful then we wont have any developers left!

Pete5506
Pete5506

I hope they can work something out

FlashCharge
FlashCharge

Hope Tomb Raider is a success! These are troubled times and gamers are becoming more selective in what they buy. Today, game makers have to listen, produce games with as few flaws as possible, and give an awesome playing experience to succeed.

clicketyclick
clicketyclick

Tomb Raider will undoubtedly be a blockbuster hit. As well, in an interview with Eric Lindstrom of Crystal Dynamics, he mentioned that another Legacy of Kain game may be made in the future, though by a different in-house developer (since Crystal Dynamics have their hands full with Tomb Raider.) I'm not sure that SCi's explanation of their financial losses as restructuring costs isn't just spin, so I wouldn't necessarily take it as a sign of commitment to anything other than survival in order to make money another day. I also wouldn't assume that Eidos interprets their losses as a sign that they must deliver quality. They could very well take it as a sign that they need to readjust their focus onto the casual/mainstream gaming market. That seems to be the direction that [URL=http://www.destructoid.com/more-detail-from-square-president-no-more-non-mainstream-games-allowed-87774.phtml]Square Enix is taking[/URL] in response to a disappointing fiscal year with income down 20.9%. It's worth it to follow the suits because without the numbers, the games we enjoy can't get made. As the article here shows, when a publisher loses money, entire game projects get the kibosh. What kind of games do you think those 14 were? The ones that SCi isn't sure will make a profit, i.e. indie-like, experimental new IP (not part of existing franchises.) As Square Enix has done, SCi is likely to stick mainly to sequels and remakes in order to make up for losses.

Amir29
Amir29

Thanks for all of that info ClicketyClick. I don't mean any of this to sound sarcastic but though I truly appreciate you sharing all of that knowledge, I would never care to follow the suits. Their lives are in numbers and game development is in the love of creation and art. When a gamer gets to play someone's "love" we come out loving the experience we were given. My simple mind sees this: It's make or break time for Eidos. It doesn't look like they can afford to bank on just a game title anymore. They'll HAVE to make sure they deliver quality. The're commitment to spending so much to "trnasform" themselves is a good sign (and a VERY risky move). I for one am excited to see just how much focus they put into the quality of Tomb Raider and Batman. If those to games come out blockbuster hits, just that should be enough to put them back at even strength.

clicketyclick
clicketyclick

What a small world it is. CEO Jane Cavanagh and commercial Director Bill Ennis of SCi were [URL=http://www.gamespot.com/ps3/action/tombraider8/news.html?page=1&sid=6184858]forced to resign[/URL] by shareholders after takeover talks fell through. Recently, Rockstar's parent company, Take-Two Interactive, also faced [URL=http://www.gamespot.com/news/6168306.html]ire from shareholders[/URL] after [URL=http://www.gamespot.com/news/6184646.html]takeover plans fell through[/URL], forcing their CEO and directors out of their jobs. The man who replaced the chairman of the directors was former Crystal Dynamics CEO, [URL=http://www.gamespot.com/news/6168306.html]Strauss Zelnick[/URL]. In case you didn't know, Crystal Dynamics was hired by SCi/Eidos to develop Tomb Raider. Maybe they should have held onto him, considering how he's now credited with [URL=http://kotaku.com/gaming/take_two/his-name-is-strauss-zelnick-it-is-wonderful-326700.php]turning Take-Two around[/URL] after its multiple scandals, financial and legal problems. It's a shame about Jane Cavanagh. From what I have read, she was an excellent businesswoman. @ Lord_Bafford: It's true that Hitman is developed by IO Interactive and only published by Eidos as you said. But the reason why people are "looking for Hitman" despite that is because both Eidos and IO Interactive are [URL=http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article2388613.ece]owned by SCi[/URL]. ;)

Cabal23
Cabal23

The majority of people could care less about Tomb Raider. Can you say over-cooked one too many times?

Cabal23
Cabal23

Maybe if they made an original game instead of milking (is that even an appropriate term since the franchise is as old as my 486dx?) the Tomb Raider franchise. They have had a few originals, but obviously not enough to stay afloat. It only means more indie developers will fill the void and for that I am thankful.

bcrenton
bcrenton

Just Cause 2 = potential...

necronaux
necronaux

Losses 99 mil, 200 jobs, 14 titles dropped... and the titles their keeping? Batman? Just Cause? I don't think their future looks any brighter if their banking everything on Tomb Raider.

Supaza
Supaza

Just Cause left a lot to be desired but i enjoyed it nonetheless. Bring on another one, bigger, better, and with less repetition and i'll be happy to pass a few £s their way.

Gifford222
Gifford222

I hope the "Tomb Raider Underworld" is still comming! I can't wait...

Stec13
Stec13

How on earth are all these game companies losing money when all we hear about is the record shattering numbers of the entire game industry and how healthy the game industry is and how they are beating Hollywood and the Music industry for our entertainment dollar but yet all the game publishers are supposedly broke WTF!?!?

dth_dlr
dth_dlr

bad news for eidos, at least they haven't delayed tomb raider

Nostradennis
Nostradennis

More Kain less Tomb. That decision should have been made years ago.

kavadias1981
kavadias1981

The only company that doesn't seem to be making losses right now is Nintendo. I say they buy out all these ailing ones.

raymondcs123
raymondcs123

Well Tomb Raider and Hitman really is Eidos' last hope. If they don't figure a new game (Tomb Raider is getting old) soon problems will emerge.

unacomn
unacomn

Making better games takes time, so if you want to see a sequel to Hitman, Deus Ex and Legacy of Kain, just have patiance and hope the company dosen't go under.

Doolum
Doolum

Hope the upcoming Tomb raider doesnt disappoint.i played on the 3rd one and thats abt it.

BboyStatix
BboyStatix

tomb raider underworld is gonna make them rich as hell!!! the moment it comes out its gon be sold out. im soooooo buyin it and for the 1st time im buying it bcus of the gameplay and not only because i wana look at laras hot body

ffejufo
ffejufo

forget tomb raider and make fear effect 3 that was my favorite game as well as soul reaver

forhekset
forhekset

[This message was deleted at the request of a moderator or administrator]

dkell2
dkell2

Finish the Legacy of Kain series! Enough Tomb Raider already.

godzillavskong
godzillavskong

Release a new next-gen Legacy of Kain, using the same graphics engine thats involved in this yet to be released Tomb Raider, then we'll see stocks rise!

feararagon
feararagon

I like all the hitman games they have!NOOOOOOOOOOOOooo

spartan----117
spartan----117

[This message was deleted at the request of a moderator or administrator]

metalkid9
metalkid9

I'm still waiting for just cause 2 and hoping they bring back hitman

lostboy85
lostboy85

I kinda regret owning 300 shares in Eidos... the stock price has never gone up past what i bought it at. Though i cant wait for underworld.

-DrRobotnik-
-DrRobotnik-

Come on! I want a new Hitman and Thief game!!! Then you'll start seeing the $$$

Haeravon
Haeravon

Maybe if they'd stop making sucky Tomb Raider games, they wouldn't lose so much money. Go make another Legacy of Kain game!

Lord_Bafford
Lord_Bafford

Why is everyone looking for Hitman? Hitman is developed by IO Interactive and only published by Eidos. For all they care, they could find another publisher...if they ended their contract or Eidos goes down the drain.

moej88
moej88

Ps. Where is Hit man ?

moej88
moej88

If Tomb Raider Underworld has a short story mode then not alot of people would buy it for the high price. Instead they will either rent or wait for a price drop.... leading to more loses. I hope they pull through fine

ZippyDSMLee
ZippyDSMLee

Oh boy Dues ex 3 is going to be a real budget game....even more so than DX2 was >

humbikmeamyou
humbikmeamyou

Just for Hitamn they got keep this company going.

lamprey263
lamprey263

Dang, Eidos doesn't seem to be doing too well. I liked many of their games throughout the years, and I'm really looking forward to the next Tomb Raider since Legend ended without completing its story. I'd even like to see another Kane & Lynch game if possible, as the last one would have been great had it not been for a few small issues that could have bettered the game dramatically had they been worked on before release, so I think they can do much better with another game. And I definitely want to see another Hitman. I hope Eidos gets their act together. Tomb Raider Underworld should be able to make Eidos a nice amount of money since they're porting it every which way. A critical failure like the latest Alone In The Dark was even able to make Atari money because they ported it all over, and Underworld actually looks to be good so it'll be interesting to see how much it helps.

waza000
waza000

Eidos ... i never did understand why their series were considered so good Hitman, commandos, lara croft, thief and deusX were so good (but for deusX, i got to admit i barely played it 15 minutes, as of what i remember of it)