Speculation has been growing this year that Eidos' days on its own could be numbered. This was primarily the result of Eidos' financial troubles, as the company announced in January that its earnings would be disappointing for the last quarter of 1999 and into this this year as it would struggle with the transition to the next generation of consoles. Eidos currently has 10 games in development for the PS2, is supporting the Dreamcast, has been in discussions with Microsoft about X-Box development and Nintendo about the Dolphin, as well as continuing with PC development. Some has suggested that Eidos has simply spread itself too thin.

Rumoured potential buyers have included French game maker Infogrames, Microsoft, who clearly wants to build its in house development in preparation for the launch of the X-box, and even Electronic Arts, who would probably welcome Eidos' well known brands into its stable of franchises.

Celine Berthier, Infogrames's head of investor relations, said in a Bloomberg news report that, ``We have been talking with many companies, including Eidos,'' and it's ``only a rumor'' that Infogrames is buying the company.

Microsoft U.K. Games Marketing Manager Richard Teversham told Dow Jones Newswires that the industry is undergoing consolidation and the company is talking to a lot of people.

"But this does not mean Microsoft is buying Eidos," Teversham said.