Eidos has told the money-men (and ladies) that Tomb Raider: Underworld (review here) has under-performed.
The blame is "primarily due to a lower start in North America. In a difficult North American economy we have seen retailers restricting inventory levels and triple-A products being price discounted above our expectation".
That said, the title has sold "approximately 1.5 million units". This however is, according to the company,"below our internal forecasts".
Eidos has also cut its 2009 revenue projection to "£160m-£180m compared to our previous guidance of £180m-£200m". This in turn has lead it to review any price discounting on games for 2009.
In turn this means that the company, "may need to enter into discussions with our lending bank regarding our June 2009 covenants". These covenants refer to the conditions under which a loan is granted by a bank - they don't refer to the sums of money involved. In fact, Eidos currently has "sufficient headroom within our committed banking facility" to service its debts.
On the upside, "we are encouraged by the positive reaction to our forthcoming Batman: Arkham Asylum videogame. We are working closely with DC Comics and Warner Bros. and through our strategic partnership we are benefitting from cross-promotional opportunities including the first video trailer for Batman: Arkham Asylum featured on all DVDs of the movie The Dark Knight this Christmas".
The blame is "primarily due to a lower start in North America. In a difficult North American economy we have seen retailers restricting inventory levels and triple-A products being price discounted above our expectation".
That said, the title has sold "approximately 1.5 million units". This however is, according to the company,"below our internal forecasts".
Eidos has also cut its 2009 revenue projection to "£160m-£180m compared to our previous guidance of £180m-£200m". This in turn has lead it to review any price discounting on games for 2009.
In turn this means that the company, "may need to enter into discussions with our lending bank regarding our June 2009 covenants". These covenants refer to the conditions under which a loan is granted by a bank - they don't refer to the sums of money involved. In fact, Eidos currently has "sufficient headroom within our committed banking facility" to service its debts.
On the upside, "we are encouraged by the positive reaction to our forthcoming Batman: Arkham Asylum videogame. We are working closely with DC Comics and Warner Bros. and through our strategic partnership we are benefitting from cross-promotional opportunities including the first video trailer for Batman: Arkham Asylum featured on all DVDs of the movie The Dark Knight this Christmas".
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