Eidos Interactive: business analysis.

Essay by jumathieUniversity, Bachelor'sC+, October 2005

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Eidos Interactive is an English company which makes video games. It is one of the best makers and developers and provides leisure and entertainment especially for young people. We know that nowadays the video games market is growing. "The industry has grown to rival every other entertainment manufacturer grossing more than 100 billion dollars annually worldwide" (Sam Hart, A call for quality, http://www.geekcomix.com/vgh/calqual.shtml, 05/12/02). This market now is more profitable than movie market.

Eidos Interactive was born in 1990 but moved into the video games market in 1995 with the acquisition of Domark. Eidos is a public limited company registered in England. It has a quotation in bourse in the United Kingdom and in the United States. There are nearly 500 people who work for the company in the world. 40% of the staff works in the development of new video games within 13 teams. But Eidos Interactive can also count on partnership companies such as "Io-Interactive" or "Elixir studios" which help with the creation of new products.

So, in fact, Eidos Interactive has more than 600 people (Source: www.eidos.com 25/11/2002). The chief executive officer is Michael P. McGarvey. You can see in figure1 different managers of the society.

Figure 1: different managers (Source: www.eidos.com 25/11/2002)

Left to right:

Jeremy Heath-Smith (Worldwide Head of Development),

Mike McGarvey (Chief Executive Officer),

Ian Livingstone (Creative Director),

Jonathan Kemp (European Managing Director)

The mission statement of the company for Michael P. McGarvey is: "The timely creation of a compelling portfolio of games to drive profitable growth". Now, they focus on video games and software. Turnover was down to £128.9 million for the fifteen months to 30 June 2002 from £164.2 million in the prior twelve month period. However, gross margins increased from 50.2% (pre exceptional charges) to 58.3% and there were further reductions...