The UK’s largest independent games producer Eidos has lowered its revenue forecast for 2009 and may have to renegotiate its debt arrangements after disappointing Christmas sales of its latest Tomb Raider game franchise in the US. The game sold approximately 1.5 million units between its launch on November 18 and December 31, a figure that failed to match the company’s internal forecasts.
Eidos says in a trading update today that this, coupled with the troubled economy, has led it to revise its full-year sales forecast from between £180 million and £200 million to between £160 million and £180 million. Eidos says it passed its “peak net debt position”, and though it has enough breathing space in its current debt arrangements it “may need to enter discussions with our lending back regarding our June 2009 covenants”. Release.
Then called SCI, Eidos had to raise another £60 million from existing shareholder TIme Warner and a property tycoon last year after posting a £30 million loss for the year to June 2007. Despite being courted for a buyout last year after its stock market price collapsed, acquisition talk has gone off the boil despite Time Warner (NYSE: TWX) upping its stake further still late last year. The disappointing Tomb Raider sales are surprising – the game got good reviews and plenty of marketing exposure.