Retail - Eidos misadventures too much for even Lara to handle

Games producer and ISP Eidos, creator of the Tomb Raider games, that feature Lara Croft, was at the centre of takeover speculation last week after issuing a profit warning.

Games producer and ISP Eidos, creator of the Tomb Raider games, that feature Lara Croft, was at the centre of takeover speculation last week after issuing a profit warning.

Shares in the UK company plunged by £12.60 to £28.68, a long way off the company's all-time high of £66, reached at the end of last year, after the games specialist admitted it was having trading difficulties.

In a statement, the company said: "The combination of product delays and, in some instances, disappointing performance has led the board to revise downwards its expectations for the quarter and full year."

Eidos has increasingly been viewed as a one-product company, with Tomb Raider accounting for 40 per cent of turnover. Other games have not captured the public's imagination in the same way.

Despite the warning, Eidos was bolstered by Sega's decision to distribute Tomb Raider on its Dreamcast platform, now Sony's exclusive right to offer the game on PlayStation and PCs has expired. A Lara Croft movie, due at the end of this year, could also boost Eidos's fortunes.

No clear contender has emerged to buy Eidos, but analysts claim a suitor would have to act quickly, before the launch of PlayStation II kick-starts Eidos's sales again.

Eidos added: "The board expects that second-half operating profit will be comparable with that achieved in the second half of 1999."