Eidos programs a new warning

INVESTORS in computer games maker Eidos were left reeling again today after the company warned that a new product could miss the key Christmas shopping season.

The company, which is in bid talks with potential buyers after a slump in games sales, said it is delaying the release of a computer version of Championship Manager 5 because of last-minute technical problems.

The company said the product 'should' be launched shortly before Christmas but may ght not be in the shops until the New Year.

Missing out on the lucrative Christmas market is likely to dent sales in the short term.

The announcement is the latest in a series of disappointments for Eidos shareholders. The company added, however, that it remains in talks that could lead to it being taken over.

The company plunged into the red earlier this year and admitted that it was not big enough to compete effectively on the international computer games stage.

The group said in September sales in the US had collapsed and that it had failed to hit sales targets with its Hitman Contracts game.

Eidos slumped to a £2m pre-tax loss in the year to the end of June against a £17m profit last time while turnover dived 12% to £133m.

The company has effectively been up for sale since June with Sony, Microsoft, Electronic Arts, Activision, THQ and Take Two all said to be interested. One possible bidder, French-based Ubi Soft is believed to have pulled out of talks since making a £215m bid for the business.

Back copies of the Lara Croft/Tomb Raider series are still selling well and Eidos has high hopes for the autumn release of Championship Manager 5 with an online version launching in 2005.