Update

A financial report from Eidos Interactive UK has stated that as well as a 30% increase in operating profit (well done Eidos), they claim; "Acquisition of IO Interactive A/S for �23 million initial consideration"

The 18-page report states;
Eidos plc, one of the world's leading publishers and developers of entertainment software, today announces its interim results for the six months to 31 December 2003 and the intended acquisition of IO Interactive.

Eidos is extremely pleased to announce that it has entered into a conditional agreement to acquire IO Interactive, the Danish based studio, responsible for the development of the hugely successful Hitman franchise.

• Initial consideration of �23 million, in cash and stock, plus up to �5m contingent payment linked to four year performance based earn-out
• Small contribution to operating profit expected in this financial year and earnings enhancing at each level of the earn-out
• In line with Eidos strategy of increasing owned IP
• Significantly strengthens Group's European creative base and resource for development of next generation technology
• Secures future rights to highly successful and critically acclaimed Hitman franchise � Hitman 2: Silent Assassin has sold over 3 million units
• Conditional exchange of contracts signed - completion expected by 31 March 2004 and consolidation from that date

Commenting on the acquisition of IO Interactive, Mike McGarvey, CEO of Eidos, said:
"We welcome the IO team of outstanding, technically creative developers, who we know share our vision and values. The relationship and experience we have already shared with IO over the past five years gives us great confidence in their ability not only to maintain the outstanding success of Hitman, but also to develop new titles of unique IP. In addition, their market leading technology will be a key element in the Group's transition to next generation platforms."

Janos Fl�sser, Managing Director of IO Interactive, said:
"Eidos is an ideal partner for IO with an inspired and successful management team who share a similar production and development ethos to our own. We are delighted to take our existing relationship to the next stage. We will look to continue producing successful franchises, such as Hitman, and help to define a winning technology platform which has the potential to be more widely used across the Eidos studios."

The statement also goes on to say:
IO also has a second creative team which has been responsible for the development of Freedom Fighters, a squad based fighter game, which was released in October 2003 by Electronic Arts and which has sold circa 1 million units to date. A decision relating to any Freedom Fighters sequel will be considered in parallel with other original IP projects currently being developed by Eidos and IO in order to maximise the potential of this second team.

Unfortunately the rest of the release is full of balance sheets which I am positively certain that you won't want to read. (I hope they bought that - I really don't want to type all of those up!!

So what does this mean? Well it puts serious doubts over a European release; Eidos had the rights to publish it in Europe, Atari have the rights in Australia. GC gamers were hoping that with Eidos dropping their GC support Atari would publish Hitman 3 in Europe. Sadly this will not be the case anymore, so an EU release is almost guarenteed not to happen! Come, come cry with me :'(