Eidos to be Sold?

It's no secret that Eidos wrote red numbers on the accounting ledger recently, having announced a loss of US$40.7 million for the fiscal year ending March 31, as compared to a 59.5 million pound profit within the same period during the previous year. Reasons for the decline are numerous: The failure of many potential hit games during the last holiday season, the costly Ion Storm experience, and the step into next-generation development can all be held responsible for the struggles of the South Western London-based publisher.

As Computer Trade Weekly reports, the company is "in the early stages of discussions which may or may not lead to an offer for the whole of the issued share capital of Eidos." The BBC has noted that Eidos released 24 products in the last 12 months, including the distribution of Resident Evil 3: Nemesis, Resident Evil Survivor, and Final Fantasy VIII in Europe.

The company shares hit a high of 1273 pence in December of last year but have been declining rapidly to a poor 260 pence last month - a situation that would make most shareholders scream for change. The news of the possible sale of Eidos caused a storm on the stock market though, with Eidos' shares rocketing to a final mark of 510 pence at 3pm GMT.

Considering Eidos' sale position, press sources are guessing that Infogrames or Microsoft are the most likely candidates to buy up the company, which holds the rights to Tomb Raider and many other brands and developers like Ion Storm, Innerloop, Core Design, Mucky Foot, and Crystal Dynamics. Eidos, however, has not revealed what company it is talking to. Stay tuned to GameSpot News for more information.