Eidos Admits Disappointing Tomb Raider Sales As Share Price Falls
Lower-than-expected sales of Tomb Raider: Underworld prompted Eidos to lower its fiscal forecast for the year.
Although it received generally positive critical acclaim, the latest Tomb Raider title may have suffered among one of the most crowded Christmas schedules in recent years.
Nevertheless, Eidos says it's "pleased" with the game's performance in key European territories, where it charted in the top 10 for a total of six weeks.
However, the game did not perform as well in North America, and global sell-through is currently estimated at only 1.5 million units -- below Eidos’ internal estimates. The company blamed the economic downturn in North America for the underperformance, conditions that prompted retailers to restrain inventory levels and offer unexpectedly high discounts.
As a result, Eidos company lowered its full fiscal year revenue predictions from £180 -£200 million ($273-$303 million) down to £160 to £180 million($243-$273 million).
The company says it's passed its "peak net debt position", but may need to negotiate for further lending facilities later in the year. Much now depends on the success of the forthcoming Batman: Arkham Asylum.
The news had a predictable effect on the company’s share price, which fell by as much as 25 percent in early morning trading. The price on the London Stock Exchange has recovered slightly, but is still down from £17.25 ($26) a share on Thursday to a current value of £12.75 ($19).