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[ February 29th 2008 ]

Eidos has announced a ruthless cost-cutting campaign aimed at reducing some 25 per cent of Company workforce and the axing of 14 ongoing projects as part of a restructuring plan Eidos CEO Phil Rogers hopes will tip the publisher back on an even keel.

"SCi is in need of immediate change," said SCi CEO Phil Rogers. "Following our business review over the last six weeks, we are initiating a clear action plan based on three fundamental strands of activity: a radical change in our structure to a studio-led business, a top to bottom program of product improvement and efficiency and a considerable cost reduction plan.

"The cost of delivering world-class games has increased significantly and we must provide appropriate levels of resource to maximise these opportunities. At the same time our industry is well positioned for business and margin expansion through a broadening demographic appeal of games and initiatives centred around online initiatives.

"Our cornerstone franchises, such as Tomb Raider that has already sold 35 million units, have the potential to deliver significant profits and substantial returns on investment, which should not be diluted by more run-of-the-mill games. We must optimise our return on these titles, leverage and position the Group for online and make better use of our innovative strength."

Eidos also confirmed Tomb Raider Underworld, currently being developed by U.S. studio Crystal Dyanmics, will be released Christmas 2008. "Following a review of our 2008 platform and product line up, the Group has decided to move the release date of four titles into the fourth calendar quarter.

"The most significant of these titles is the next Tomb Raider game, Tomb Raider: Underworld, which is now scheduled to launch during the 2008 Christmas season. "

Revenue for the six months to 31 December 2007 was 73.0m against 74.5m in the comparable period for 2006. The Group released three games, versus four in the comparable period of the prior year. The Group made a loss from operations of 81.4m in the six months to 31 December 2007 compared to a loss of 17.9m in the same period in 2006.

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