UK-based games developer Eidos Plc announced that it was considering a number of possible acquisitions back in May (CI No 3,439) and since then the gaming community has been speculating about which companies were possible targets. The latest rumors come from FGN online, which claims that Eidos is preparing to merge with Sony Corp subsidiary, UK-based Psygnosis Ltd – which would leave Sony with a substantial shareholding in the publicly quoted company. A spokesperson for Eidos refused to comment on the possibility of a merger, while a spokesperson for Psygnosis could not confirm any of the rumors but said that any decision to sell would be entirely down to the parent company. Sony had not returned our calls by press time. Sony has been toying with selling off its games development subsidiary since 1996 (CI No 2,911) and if Eidos is not the eventual buyer, other acquisitive gamers such as Acclaim Entertainment Inc and Electronic Arts Inc may well fit the bill. However, a Sony/Eidos tie-up could be beneficial to both parties – Sony needs to develop high profile software to encourage the take-up of its next generation platform (CI No 3,452), and on the back of the success of Tomb Raider and Tomb Raider II, Eidos could hardly be more high profile. Meanwhile, a merger with Psygnosis, backed up with a Sony holding would make Eidos a very large fish in the games development pond.
