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Technology Stocks : eidos--maker of Tomb Raider

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To: Jeff Lins who wrote (1236)8/16/1998 10:06:00 PM
From: Bleeker  Read Replies (2) of 1773
 
FFVII is ranked #1 at COMPUSA stores nationwide in August up from #3
in July. GT Interactive's Unreal is ranked #4 and Microprosee's Mech
Commander is #2. The FFVII rebates are no longer being offered.

EIDOS saw its US market share increase to #11 in June from #17 in May.
This was the biggest jump among its competitors, according to PC DATA.
The release of FFVII in the last week of June was the reason why. PC
DATA has two series on market share. One is dollar-based sales the
other is # of units sold. The top three companies with the biggest
market share in order are Cendant, GT Interactive and Electronic Arts.

Interestingly, when comparing the two series ($-based sales vs. units
sold) for EIDOS and GT during FYQ1, it becomes evident that EIDOS is
more successful at selling higher priced games while GT is better at
selling more units at a lower price. In the case of EIDOS, its $-based
market share was consistently higher each month in FYQ1 than its unit
based market share:

EIDOS $-based market share in US vs. game units sold:
April: 2.2% vs. 1.8%
May: 2% vs. 1.6%
June: 4.1% vs. 2.6% (does not take into account mail-in rebates.)

GT Interactive:
April: 8.7% vs. 13.2%
May: ? vs. ?
June: 10.9% vs. 13%

The PC DATA numbers also don't take into account FFVII returns because
of the technical snafu. Jeff reported that there is now a patch for
it and there is, but the French are still angry. A post on Usernet
from Friday suggests that there are Belgians working at EIDOS tech.
support (no offense to Thierry on the SI board. In fact, Belgo's in
London was one of my favorite restaurants for mussels and chips). But
this Frenchman is still weathering snafus: another reason why EIDOS
has looked like the Titanic even if the COMPUSA ranking suggests that
FFVII is doing o.k. Here is the link to the mad (irked) Frenchman:

ww2.altavista.digital.com@32067@fr%2erec%2ejeux%2evideo%26eidos

SIDE DISH: I know some are not totally fond of Electronic Arts. But
both ERTS and THQI have the highest valuations in the sector. Is it
coincidence that they both have zero debt? I think their valuations
can in part be explained by their strong balance sheet, ability to
control cost and strong earnings growth. I still think Commandos can
be big.

Bleeker
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