Although its financial year doesn't end until June 30, Eidos is already indicating that its annual earnings will be lower than expected. Today Eidos' board released a statement that warned that "market trends and the changing competitive landscape mean that Eidos is becoming increasingly reliant on the performance of key titles," obliquely referring to reportedly lackluster sales of Hitman: Contracts.

　　Eidos' statement acknowledged the risk of depending on a few franchises. "The Board is mindful of the potential benefits of scale in reducing the exposure caused by these factors," read the statement. However, the company didn't exactly outline an escape plan from its predicament, saying only that it "has initiated a review of the strategic alternatives available to Eidos in order to exploit fully the potential of the Company’s excellent owned IP and development capabilities."

　　So what exactly are these "strategic alternatives"? At least one stateside financial analyst is predicting that the once-mighty game publisher may soon be up for purchase. Wedbush Morgan analyst Michael Pachter said this morning in a memo, "We believe that the strategic review includes the possible sale of the company."

　　Pachter went on to finger Electronic Arts, Activision, THQ, Take-Two, and Midway as potential suitors. However, he quickly singled out the two most likely buyers: Midway, thanks to the deep pockets of its majority shareholder, Sumner Redstone, and THQ, due to its need to secure more creative IP as well as its need to bolster European distribution.

　　The Wall Street Journal, on the other hand, includes "continental rivals" Ubisoft and Atari parent Infogrames as buyers who would most benefit from Eidos' library of intellectual property. The paper speculates further that Sony or Microsoft could also easily continue their "predatory" tactics of buying development studios to provide exclusive IP for their respective consoles.

　　Eidos did allow itself a small bit of praise, claiming significant improvements in development by releasing 13 new titles on time during the past 12 months. The company has, however, decided to delay the launch of ShellShock: Nam '67 until September so as to avoid releasing it during "the traditionally quiet summer sales period."

　　As a result of delaying ShellShock: Nam '67 until its next financial year, Eidos now expects to break even or report a small loss for the year ending June 30, 2004.