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Eidos lowers forecasts following slow Tomb Raider sales

By Matt Martin

Fri 09 Jan 2009 8:27am GMT / 3:27am EST / 12:27am PST

Publisher blames heavy discounting and cautious demand from US retail; lowers full year revenue expectations

Eidos has said that Tomb Raider: Underworld, the latest in the long-running adventure franchise, has failed to meet internal forecasts since launch in mid November.

The game has sold an estimated 1.5 million units worldwide, and although Eidos said it held its own against competitor products, its performance has been disappointing.

"On a global basis our sell through to 31 December, which we estimate at approximately 1.5 million units, is below our internal forecasts, primarily due to a lower start in North America," said the company.

"In a difficult North American economy we have seen retailers restricting inventory levels and triple-A products being price discounted above our expectation."

Remaining cautious of further price discounting, Eidos has now lowered its full year revenue estimates to between GBP 160 million – GBP 180 million, compared to previous estimates of GBP 180 million – GBP 200 million.

The company added: "We have passed our peak net debt position and we retain sufficient headroom within our committed banking facility but given revised profit expectations we may need to enter into discussions with our lending bank regarding our June 2009 covenants."

Looking forward to 2009, Eidos said it was encouraged by the positive press of forthcoming title Batman: Arkham Asylum, and will be working closely with DC Comics and Warner Bros. on cross-promotional opportunities.

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