Eidos for sale?

[AndaPanda]

Someone on the IGN Boards posted this. Hopefully we can get some answers here? Thanks.

Eidos Puts Itself Up for Sale After Profits Alert
Damian Reece, 06.18.04, 10:48 AM ET

THE EXPLOITS of Lara Croft in her Tomb Raider adventures have not been enough to save the computer games publisher Eidos, which has put itself up for sale. After its shares slipped further yesterday, the company has a market value of pounds 156m.

It has struggled in the computer games market, which is increasingly competitive. Rivals likely to show an interest in Eidos include Sony, Microsoft, Activision and Electronic Arts.

Eidos said it had begun a review of its "strategic alternatives" and would be delaying the publication of ShellShock: Nam 67, its latest video game, until September. "The expected contribution from this rescheduled title will fall into the financial year ending on 30 June 2005 and consequently the company now expects to report a break-even-to-small loss for the financial year to 30 June 2004," it said.

This is the second time that Eidos has warned on its profits in a matter of weeks. The company said last month that the sales performance of Hitman: Contracts had proved disappointing and would have a negative impact on profits. That announcement sent the shares crashing 35 per cent and the Eidos stock price continued its downtrend yesterday, finishing 3.4 per cent lower at 109.5p.

The company said the problems besetting the Hitman title had not reversed and that it was caught in a computer games market where scale, diversity and financial strength were becoming ever more important.

"In addition, there is the continuing need to invest more heavily in research and development ahead of the next hardware cycle", the company said.

"These market trends and the changing competitive landscape mean that Eidos is becoming increasingly reliant on the performance of key titles."

The company's board recognised the benefits of scale in reducing the exposure caused by these factors, it said, and had decided to pursue a strategic review to exploit fully the company's intellectual property and development capabilities.


You can find the whole news here, but you need to pay to be able to read it.

[KainOFthehylden]

This is bad news...but hopefully this is untrue...yet the stastics and the precise numbers in this makes me think its true.....
If this is true it would really be a loss for all video gamers and especially us LOK fans.....

Ps if this is true we can bid LOK goodbye I guess...

Edit: I always considered Eidos to be the biggest industry in publishing video games..it would be a shame to lose this thought

[Omega]

Well, if this is true... please dear God let Sony pick it up... I really don't want Microsoft to get it...

[Cloud_Hiro]

Well, if this is true, activision would also be good because they had something to do with Blood Omen 1 If I remember correctly..

[Reaver of Souls]

Ok, anyone that can, please correct me if I am wrong in saying this, but if Eidos is sold, won't the new owner of Eidos still have the same compaines making games for it? Like, won't Crystal Dynamics still make games to be published by the new company? If this is true, then they will continue to use profitable titles and series, and I don't see any reason for worry. Sure, it would be sad if Eidos would go, but as long as our games are still made by the same company, thought published by a different one, it's not a total loss.

[Jeffers]

It hasn't definatley been put up for sale, it is just Eidos isn't doing quite as well as it had hoped profits wise due to the drop in demand for games.

But it has issued a second profits warning, which I read, is effectively opening the market for companies to consider a takeover, but again, doesn't mean it is definately going to happen.

Jeffers

[Nerevar]

Well, a couple of days ago (June 17. 2004) Eidos Interactive did file a Form 6-K (a form for non U.S. securities issuers to make periodic reports) with the Securities and Exchange Commission (SEC) pursuant to the Securities Exchange Act (Rules 13a-16 and 15d-16). I've extracted a copy from EDGAR and highlighted the relevant section so you may judge for yourselves:

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<SEC-DOCUMENT>0001157523-04-005739.txt : 20040617
<SEC-HEADER>0001157523-04-005739.hdr.sgml : 20040617
<ACCEPTANCE-DATETIME>20040617060116
ACCESSION NUMBER: 0001157523-04-005739
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20040616
FILED AS OF DATE: 20040617

FILER:

COMPANY DATA:
COMPANY CONFORMED NAME: EIDOS PLC
CENTRAL INDEX KEY: 0001002717
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372]
IRS NUMBER: 000000000
FISCAL YEAR END: 0331

FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-28994
FILM NUMBER: 04867407

BUSINESS ADDRESS:
STREET 1: WIMBLEDON BRIDGE HOUSE 1 HARTFIELD RD
STREET 2: WIMBLEDON, LONDON SW19 3RV
CITY: WIMBELEDON LONDON UK
STATE: X0
BUSINESS PHONE: 011441816363000

MAIL ADDRESS:
STREET 1: WIMBLEDON BRIDGE HOUSE, 1HARTFIELD RD
STREET 2: WIMBLEDON, LONDON SW19 3RV
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a4663563.txt
<DESCRIPTION>EIDOS
<TEXT>
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of June, 2004

Commission File Number: 000-28994

Eidos plc

Wimbledon Bridge House,
1 Hartfield Road, Wimbledon,
London, United Kingdom
44 208 636 3000
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.

Form 20-F
[X]

Form 40-F
[ ]


Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____

NOTE: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes
[ ]
No
[X]

<PAGE>


If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- __N/A______



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Eidos plc
By: /S/ Stuart Cruickshank
-----------------------
Stuart Cruickshank
Chief Financial Officer
By: /S/ Michael McGarvey
-----------------------
Michael McGarvey
Chief Executive Officer


Date: 17 June 2004

Eidos Plc

Form 6-K

Table of Contents

The following documents were filed as part of this Form 6-K:

EXHIBIT REFERENCE

Press Release dated 17 June 2004 - Eidos Announces Review of Strategic
Alternatives and Provides a Business
- --------------------------------------------------------------------------------
Update
- ------



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a4663563ex991.txt
<DESCRIPTION>NEWSRELEASE
<TEXT>
Exhibit 99.1

Eidos Announces Review of Strategic Alternatives
and Provides a Business Update

LONDON--(BUSINESS WIRE)--June 17, 2004--Eidos plc ("Eidos"),
(LSE:EID.L), (NASDAQ:EIDSY), one of the world's leading publishers and
developers of entertainment software, today announces that it has
commenced a review of the strategic alternatives available to the
Company and provides a business update in respect of the current
financial year to June 30, 2004.

Review of Strategic Alternatives

The entertainment software market continues to evolve and mature
with franchise scale and diversity, aligned to financial strength,
becoming ever more important. In addition, there is the continuing
need to invest more heavily in R&D ahead of the next hardware cycle.
These market trends and the changing competitive landscape mean that
Eidos is becoming increasingly reliant on the performance of key
titles. The Board is mindful of the potential benefits of scale in
reducing the exposure caused by these factors. Accordingly, it has
initiated a review of the strategic alternatives available to Eidos in
order to exploit fully the potential of the Company's excellent owned
IP and development capabilities. This review is expected to take place
in the period prior to the release of the Company's results for the
current financial year.

Business Update

During the current financial year, the Company has successfully
released on time 13 new titles (41 sku's), which evidences the further
significant improvements made by the Company in managing its
development resources over the past 12 months. The Company's most
recent release, Thief: Deadly Shadows, was launched on May 25 in the
US and has performed in line with management's expectations in its
first two full weeks of launch. The title also released in Europe on
June 11 and while it is too early to comment on its European
performance, initial reviews are very encouraging. The Company's final
planned release during the current financial year, ShellShock: Nam
'67, has been approved on PS2, is completed on PC and Xbox approval is
expected imminently.
On May 20, 2004, the Company reported that the recent and
unexpected softness in the games market, particularly in the US, was
negatively impacting unit sales of Hitman: Contracts even though it
was charting well in Europe and the US (and continues to do so). Since
that time, this market trend has not reversed and the industry is
about to enter the traditionally quieter summer period for game sales.
Given these circumstances, and notwithstanding that the game is now
ready to release, the Board has decided to hold the release of
ShellShock: Nam '67 until September so as to provide this important
new franchise with a better opportunity to deliver its true potential.
The expected contribution from this rescheduled title will fall
into the financial year June 30, 2005 and consequently the Company now
expects to report a breakeven to small loss for the financial year to
June 30, 2004.
Eidos is the largest video games publisher and developer of
entertainment software in the UK. It has publishing operations across
Europe (France, Germany, Spain and the UK) and in the US, Japan and
Australia. It also has significant development studio expertise, both
internal and external, in Europe and the US.
Eidos plc is a public limited company registered in England
(number 2501949). Its Ordinary shares are listed on the London Stock
Exchange (ticker: EID.L) and, in the form of American Depositary
Shares, on the NASDAQ National Market (symbol: EIDSY). Further
information on the Company can be found at www.eidos.com.
Eidos and the Eidos logo are registered trademarks of Eidos plc.
All other trademarks are the property of their respective owners. All
rights reserved.
This statement contains information about our past performance or
practices. No such information should be used as an indicator of
future performance or practices. It may also contain forward-looking
statements that are based on current expectations or beliefs, as well
as assumptions about future events. You can identify these statements
by their use of words such as "will", "anticipate", "estimate",
"expect", "project", "intend", "plan", "should", "may", "assume" and
other similar words. You should not place undue reliance on our
forward-looking statements, which are not a guarantee of future
performance and are subject to factors that could cause our actual
results to differ materially from those expressed or implied by these
statements. Such factors include: general economic conditions in the
Group's markets, particularly levels of consumer spending; exchange
rates, particularly between the pound sterling and the U.S. dollar, in
which the Group makes significant sales; the Group's ability to
continue to win acceptance of its products, which are offered in
highly competitive markets characterized by continual new product
introductions, rapid developments in technology and subjective and
changing consumer preferences (particularly in the entertainment
business); the Group's ability to attract and retain qualified
personnel; risks of doing business internationally; and other risks
described from time to time in Eidos plc's Securities and Exchange
Commission periodic reports and filings. We undertake no obligation to
update our forward-looking statements, whether as a result of new
information, future events or otherwise. No information contained in
this statement constitutes or shall be deemed to constitute an
invitation or otherwise deal in shares or ADR's of Eidos plc. The
price of shares and income derived from them can go down as well as
up.

--30--SS/ny*

CONTACT: Eidos plc
John van Kuffeler, Chairman, 020 7245 0270
Mike McGarvey, CEO, 020 8636 3445
Stuart Cruickshank, CFO, 020 8636 3445
or
Brunswick UK
Jonathan Glass or Conor McClafferty, 020 7404 5959
or
Brunswick NY
Nina Devlin, 001 212 333 3810



</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----

[blincoln]

There was a discussion of this over at GameFAQs last week.

My (reluctant) feeling is that if Eidos is sold, it would pretty much be the end of the series as we know it. Publishers like EA are not interested in unique franchises, they are interested in selling whatever is most profitable at any given time. This is pretty sad, since EA in the 80s was the source of a bunch of great unique games like Wasteland.

Potential buyers would probably be interested in the most high-market-value properties that Eidos owns, like Tomb Raider. I can't see any of them (with the possible exception of MS and Sony) taking a chance on another Kain game. If they did, I think it would be more along the lines of the rumoured Raziel in the modern era thing, where it's got familiar characters but doesn't fit with the story of the earlier games.

[KainOFthehylden]

Oh GOD....this cannot be true

But u know what, if this is still not surely going to happen then tomorrow,since I have some money, I'll buy Hitman: contracts and I'll see if I can find TR: AoD....I think if all the LOK fans bought some of the Eidos games even if they are not interested in..we can save Eidos...heck I think I'm gonna buy a spare copy of Defiance also.....

Edit: yeah one more thing..if Eidos is sold does that mean that all those who work for Eidos will be changed or they will be working for the new company?

[sick]

I went like "..." when reading this. I seriously don't want this to happen.

Originally posted by Omega
Well, if this is true... please dear God let Sony pick it up... I really don't want Microsoft to get it...

Neither I want EA to have it. I want the publisher caring most for the community than the money they earn. I hate such companies and I always will.

Best luck Eidos!!

[hippiechk]

Originally posted by Omega
Well, if this is true... please dear God let Sony pick it up... I really don't want Microsoft to get it...

I agree! ANY ONE but Microsoft! PLEASE!
But even Sony is not a fantastic choice. If Microsoft gains it, and decides to continue the LOK series (highly unlikely), it will no longer be available for PS2. You know they will keep it strictly for the XBox. (Possibly PC's too, but I doubt it.) And I'll be damned if I ever buy an XBox! Not even an LOK game can make me do it! The only thing that makes Sony a better choice is that if they continued the series, it would definitely be for PS2. BUT, that doesn't mean they'll make it a good game.

Originally posted by blincoln
My (reluctant) feeling is that if Eidos is sold, it would pretty much be the end of the series as we know it.

Potential buyers would probably be interested in the most high-market-value properties that Eidos owns, like Tomb Raider. I can't see any of them (with the possible exception of MS and Sony) taking a chance on another Kain game. If they did, I think it would be more along the lines of the rumoured Raziel in the modern era thing, where it's got familiar characters but doesn't fit with the story of the earlier games.

Again, I agree. Although any buyer could possibly keep CD under wing, it's unlikely. And even if they did, CD would probably lose the creative control they've enjoyed for so long, possibly being forced to regurgitate some LOK stuff for us, thinking it would satisfy us die hards while earning themselves a few bucks. It never works out well. Sony in particular has a way of making games go thier way, killing story plots and even cool charcters in the process.

A good example is the Spyro series. Several years ago, Insomniac Games sold its successful cash baby to Sony. And Sony killed it. All Spyro games since then suck. Sony licensed it to Nintendo for GBA (why, I have no idea). Now look what they've done! The latest installment has Spyro and Crash Bandicoot in reversed roles. Talk about the stale death of once fine series!

So what will this mean for Crystal D? We'll have to wait and see.
But also, what will this mean for our forums?

[Solin]

Once again the minority suffer for the commercial foder that is the mass market, if anyone has a general idea of games that are being released they will almost all fall into a select group of games.
We have the constantly reoccuring games such as FIFA and F1 almost every year, the third person free roaming adventure where you place some badass with airstrikes oohh.
And an influx of war games eg WW2.

I mean the big companys seem to just squeze out the competition such as EA although it makes one or two good games it seems to have bought most regions of the gaming market and can pour the resourses into it to make it brilliant.
This could also be said about the music industry the taste of something new and exotic is embraced slightly before being rejected for more easily listenable to music.

[TheWatcher]

Wow. Eidos on the block, huh? Well, if there's any comfort it's in the fact that the gaming industry is not exactly a hotbed of merger and aquisition (M&A) activity. Any company interested in Eidos would most likely be so only because of Tomb Raider, and that franchise has been squeezed pretty hard already. What we as fans can do is get behind Eidos and support them financially as best we can (I'm sure we all do anyway). The two profit warnings are for the same quarter, and while I haven't been keeping up with their earnings, one quarter of break-even to loss shouldn't slam any company as established as Eidos into the deep red (look at Gateway, for goodness' sake!).

BTW, Nerevar have you looked into getting a job with the NASD? Or maybe the SEC? Hassling companies on accounting practices could be right up your alley!

Originally posted by Omega
let Sony pick it up... I really don't want Microsoft to get it...

i agree with u Omega on this

[DJpick]

I think if all the LOK fans bought some of the Eidos games even if they are not interested in..we can save Eidos
So what are we going to do, spend hundreds of dollars everytime Eidos is in trouble? I don't have that kind of money to blow on Games that I won't play.

If anything, the game designers will find a new publisher. Since Eidos didn't create LoK, they just publish it. As long as CD doesn't go down, your games are safe, and as long as a publisher picks it up, which I doubt would be a problem since CD has always been gold when it comes to games.

Lastly, MS better not pick up the publishing rights. EA or Sony would be a MUCH better choice. And since Lara Croft was a BIG deal for Sony, chances are Sony would have a BIG interest in getting the rights, since Lara was to Sony what Sonic was to Sega and Mario was to NES, and whatever Atari had.

[lucinvampire]

Hi,

I pray that this is not true, but if it is, I beg that the new owners will at least give us one more LoK game in the series, just to finish things up...but obviously I would like more, like all here!

But I knew something was funny when I read this on Ananova back in January of this year...


"Eidos shares slump following update – January 2004.

Computer games maker Eidos says it is set to record lower-than-expected interim revenues because of the weak US dollar and poor sales of certain games.

Shares in the London-based company slumped 8% after it said Commandos 3 and Legacy of Kain did not perform as well as expected during the six months to December 31.

It said this, combined with US hardware sales falling short of market forecasts and the weak currency, meant revenues for the period would be modestly below market expectations.

Despite the decline, Eidos said a strong release schedule for the second half would help it meet profit forecasts for the full year to June 30. The software group behind the Tomb Raider computer games series announced a return to profit last March after three years in the red.

It had been dogged in previous years by game delays and weak titles, which caused it to start slashing costs in 2000. Eidos released 10 games during the first half of this financial year, including Backyard Wrestling: Don't Try This at Home, Deus Ex: Invisible War and Championship Manager: Season 03/04.

Sales of these products were broadly in line with management expectations, with the exception of Commandos 3 and Legacy of Kain. Eidos said in a trading statement that operating profits for the period would be ahead of last year, although below some market expectations.

A further six products are set to be released over the second half of the group's financial year, including Thief: Deadly Shadows, ShellShock: Nam '67 and the next sequel in the successful Hitman franchise, Hitman: Contracts. These releases are expected to lift sales for the company.

The first sequel, Hitman: Silent Assassin, has now shipped in more than three million copies of the game.

Analysts forecast pre-tax profits of £19 million for the year to June 30, compared to £17.3 million for the previous year."


All the best,
Lucie

[Trelela]

Jesus! No!
It can't be like that.
I agree! It can't be Microsoft!

[blincoln]

If anything, the game designers will find a new publisher. Since Eidos didn't create LoK, they just publish it. As long as CD doesn't go down, your games are safe, and as long as a publisher picks it up, which I doubt would be a problem since CD has always been gold when it comes to games.

Crystal Dynamics is owned by Eidos. Therefore whoever buys Eidos buys CD too. That would actually be one of the major selling points, I'm sure, given that Crystal is working on the new Tomb Raider game.

[card]

one more sign of the apocalypse. i swear if lok will be canceled i'll devote my life to bringing every game/book/movie series i hate into the ground.

[Melchiah]

I think if all the LOK fans bought some of the Eidos games even if they are not interested in..we can save Eidos...heck I think I'm gonna buy a spare copy of Defiance also.....


Sorry, the only games I feel eidos does well is Legacy of Kain, sorry thats just my opinion and I wouldn't buy any other eidos game even if I was paid to. In fact I do believe Legacy of Kain would have alot better had it not been for eidos. As good as the story is, all the games were cut short and unfinished due to rushes by eidos, rushing CD to get finished, resulting in incomplete games like Soul Reaver and more aptly Soul Reaver 2 or glitchyness that was Blood Omen 2.

I think there is a good market for LoK games and I'm sure there is a company that would love to take it up. We might not see a game for a bit longer unless they kept the CD branch together...to whatever company bought them out.

But hey look at it this way, the next game was iffy anyways since Amy left..if another LoK game isn't made it could have been for the best. The only bad thing would be there not being any explaining of the Vorador Plot hole, which means Blood Omen 2 will need to be shunned as not a real LoK game.

[TheWatcher]

Originally posted by Melchiah
As good as the story is, all the games were cut short and unfinished due to rushes by eidos, rushing CD to get finished, resulting in incomplete games like Soul Reaver and more aptly Soul Reaver 2

To be fair, most all publishers rush their developers at one time or another. Think of it this way. If Eidos hadn't rushed CD on SR1 and the game was finished as originally intended (Raziel kills Turel and Kain), that would have been the end of the series. In truth, BO1 was never intended to have a sequel. They took lemons and managed to make lemonade. Their 'mistakes' gave us the wonderful world of LOK.

I haven't really been interested in other Eidos titles, but this would be a perfect time to check them out.

[TempySmurf]

Originally posted by TheWatcher
To be fair, most all publishers rush their developers at one time or another. Think of it this way. If Eidos hadn't rushed CD on SR1 and the game was finished as originally intended (Raziel kills Turel and Kain), that would have been the end of the series. In truth, BO1 was never intended to have a sequel. They took lemons and managed to make lemonade. Their 'mistakes' gave us the wonderful world of LOK.

I haven't really been interested in other Eidos titles, but this would be a perfect time to check them out.

From what I've read it seems like there was always a sequel planned for BO.

crap...

[DJpick]

Actually Temp, BO1 was a self temrinating story. Kain makes his choice and saves thew world, or rules over it. Closure.

But later on, someone asked Amy to write a sequel. It was never planned from the start, but they felt the story could be done. And then Amy wrote one.

ALso, it was less of rushing that changed SR1's storyline, and more of technical difficulties if I remember correctly. CD and Amy had bigger ideas than were capable at the time.

EDIT: Correction, if I remember correctly, they asked her if she thought she COULD write a sequel. She did.

[HyldenGuard]

Originally posted by blincoln
Crystal Dynamics is owned by Eidos. Therefore whoever buys Eidos buys CD too. That would actually be one of the major selling points, I'm sure, given that Crystal is working on the new Tomb Raider game.

God no! Not ANOTHER Tomb Raider game. I loved them at first, but 6 is taking the p a bit do u not think?