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FORM 20-F

UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549

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|(Mark One) |                                                                                                      | 
|---------- | ---------------------------------------------------------------------------------------------------- | 
|           | REGISTRATION STATEMENT PURSUANT TO
      SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | 
|           |                                                                                                      | 
|OR         |                                                                                                      | 
|           |                                                                                                      | 
|           | ANNUAL REPORT PURSUANT TO SECTION
      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934           | 
|           |                                                                                                      | 
|OR         |                                                                                                      | 
|           |                                                                                                      | 
|           | TRANSITION REPORT PURSUANT TO SECTION
      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934       | 
|           | For the transition period from April
      1, 2002 to June 30, 2002.                                 | 



Commission file number 000-28994



(incorporated with limited liability in England and Wales with registered number 2501949)  (Exact name of Registrant as specified in its charter)

England and Wales  (Jurisdiction of incorporation or organization)

Wimbledon Bridge House, 1, Hartfield Road, Wimbledon, London SW19 3RU, 44 208 636 3000  (Address and telephone number of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

|Title
      of each class                                                                                                               |  | Name of
      each exchange on which registered
|--------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------
|American
      Depositary Shares, each representing 
      one Ordinary Share of the Company, and the 
      underlying Ordinary Shares |  | Nasdaq National
      Market                   

Securities registered or to be registered pursuant to Section 12(g) of the Act.n/a
    (Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.n/a
    (Title of Class)

As of June 30, 2002, there were outstanding
  4,583,118 American Depositary Shares and 139,753,355 Ordinary Shares of the
  Company (including the Ordinary Shares underlying the outstanding American Depositary
  Receipts).

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Indicate by check mark whether the registrant
  (1) has filed all reports required to be filed by Section 13 or 15(d) of the
  Securities Exchange Act of 1934 during the preceding 12 months (or for such
  shorter period that the registrant was required to file such reports), and (2)
  has been subject to such filing requirements for the past 90 days.

Yes               No

Indicate by check mark which financial statement
  item the registrant has elected to follow.

Item 17            Item
  18

In this document, Eidos plc is referred to as the "Company" and the Company and its consolidated subsidiaries are together referred to as the "Group."

Cautionary Statement With Respect to Forward-Looking
  StatementsStatements made in this transition
  report with respect to the Group's plans, strategies and beliefs and other statements
  that are not historical facts are forward-looking statements that involve risks
  and uncertainties because they relate to events and depend on circumstances
  that will occur in the future. There are a number of factors that could cause
  actual results and developments to differ materially from those expressed or
  implied by these forward-looking statements, including without limitation, general
  economic conditions in the Group's markets, particularly levels of consumer
  spending; exchange rates, particularly between the pound sterling and the US
  dollar, in which the Group makes significant sales; and the Group's ability
  to continue to win acceptance of its products, which are offered in highly competitive
  markets characterized by continual new product introductions, rapid developments
  in technology and subjective and changing consumer preferences (particularly
  in the entertainment business); and those factors identified under "Item
  3  Key Information  Risk Factors" in the Form 20-F for the
  12 months ended March 31, 2002.

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TABLE
  OF CONTENTS

|         |         |                                                    | Page
|-------- | ------- | -------------------------------------------------- | ----
|Part I   | Item 5  | Operating and Financial
      Review and Prospects | 3   
|         |         |                                                    |     
|Part III | Item 18 | Financial Statements                               | 13  
|         |         |                                                    |     
|         | Item 19 | Exhibits                                           | 51  

|                               | 
|------------------------------ | 
|Note:                         
|Omitted items are inapplicable

Eidos plc changed its year-end to June 30 during this year. In the United Kingdom, statutory accounts for the 15 months  ended June 30, 2002 have been published.

In the United States, results for the 12 months ended March 31, 2002 have been published on a Form 20-F. This  transitional Form 20-F contains results for the 3 months ended June 30, 2002.

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PART I

ITEM 5  OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion of the financial condition and results of operations of the Group should be read in conjunction  with the Group's Consolidated Financial Statements and Notes included elsewhere in this report. The following  discussion contains forward-looking statements that involve risks and uncertainties. See "Cautionary Statement with  Respect to Forward-Looking Statements" at the beginning of this report.

Overview

The Group's future success is dependent upon
  it developing and publishing additional entertainment software titles and such
  titles achieving significant market acceptance. The Group maintains its accounting
  records and reports its results in pounds sterling in accordance with UK GAAP.
  There are material differences between UK GAAP and US GAAP and these are discussed
  in Note 31 of the Consolidated Financial Statements.

The quarter ended June 30 is traditionally a quiet period for Eidos. In the past the Group has released relatively few new  products in this period and has focused instead on preparations for the busier shipping periods of Thanksgiving and  Christmas. Results for this quarter are therefore typically characterized by net losses as a result of the Group having  reduced turnover, a fixed cost base, and levels of research and development and advertising expenditure that relates to  titles for future release.

The Group has experienced, and expects to
  continue to experience, significant fluctuations in operating results due to
  a variety of factors including, among others: (i) the timing and success of
  product introductions; (ii) market acceptance of the Group' products; (iii)
  delays in product completion; (iv) higher than expected product returns; (v)
  projected and actual changes in platforms; (vi) changes in pricing policies
  by the Group and its competitors; (vii) costs associated with the write-off
  of discontinued development projects; (viii) development and promotional expenses
  relating to the introduction of new products or new versions of existing products;
  and (ix) the size and rate of growth of the consumer software market. In response
  to competitive pressures, the Group may take certain pricing or marketing actions
  that could materially adversely affect the Group's business, results of operations
  and financial condition. Products are generally shipped as orders are received;
  accordingly, the Group operates with little backlog. The Group's expense levels
  are based, in part, on its expectations regarding future sales, and, as a result,
  operating results would be disproportionately and adversely affected by a decrease
  in sales or a failure to meet the Group's sales expectations. Furthermore, the
  entertainment software business is highly seasonal. Net revenues are typically
  significantly higher during the fourth calendar quarter, due primarily to the
  increased demand for entertainment software products during the year-end holiday
  buying season. Net revenues in other quarters are generally lower and vary significantly
  as a result of new product introductions and other factors. As a result of the
  foregoing, results of operations can be expected to fluctuate significantly
  from period to period.

The Group reports its results in sterling;
  as a result, changes in the value of the pound sterling in relation to other
  currencies will affect the Group's turnover and operating margins. The impact
  of future exchange rate fluctuations between the pound sterling and other currencies
  on the Group's turnover and operating margins cannot be accurately predicted.
  Over the past several years, the Group has taken steps to reduce its exposure
  to currency fluctuation through foreign exchange management aimed at protecting
  margins and fixing future pound sterling cash flows. In particular, the Group
  has adopted a policy of hedging against the devaluation of a portion of its
  short-term foreign currency cash flows using forward contracts and currency
  swaps issued by the Company's bankers. At June 30, 2002, unhedged currency net
  assets totaled £2.1 million (predominantly US dollars and Euros).

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Results of Operations

The following table sets forth the actual selected statements of operations data of the Group as a percentage of turnover  for the periods presented:

Consolidated Statements of Operations Data:

|                                    | Quarter ended June 30, |        | Quarter ended June 30, |  | Quarter ended June 30, |   
|----------------------------------- | ---------------------- | ------ | ---------------------- |  | ---------------------- | --
|                                    |                        |        |                        |  |                        |   
|As a percentage of turnover         | 2000                   |        | 2001                   |  | 2002                   |   
|                                    |                        |        |                        |  |                        |   
|Turnover                            |                        | 100.0  | %                      |  | 100.0                  | % 
|Cost of sales                       |                        | 52.7   | %                      |  | 41.8                   | % 
|                                    |                        |        |                        |  |                        |   
|Gross profit                        |                        | 47.3   | %                      |  | 58.2                   | % 
|Operating expenses:                 |                        |        |                        |  |                        |   
|Selling and marketing               |                        | 53.6   | %                      |  | 32.2                   | % 
|Research and development            |                        | 68.0   | %                      |  | 77.0                   | % 
|Goodwill amortization               |                        | 15.3   | %                      |  | 22.5                   | % 
|Other general and administrative    |                        | 35.3   | %                      |  | 38.7                   | % 
|                                    |                        |        |                        |  |                        |   
|Income/(loss) from operations       |                        | (124.9 | %)                     |  | (112.2                 | %)
|Income from joint ventures          |                        | 1.7    | %                      |  | 0.5                    | % 
|Joint Venture goodwill amortization |                        | (7.3   | )%                     |  | (9.7                   | )%
|Income from investments             |                        |       |                        |  |                       |   
|Interest expense, net               |                        | 1.0    | %                      |  | (1.9                   | )%
|(Provision)/credit for income taxes |                        | 40.6   | %                      |  |                       |   
|                                    |                        |        |                        |  |                        |   
|Net income                          |                        | (88.9  | %)                     |  | (123.3                 | %)
|                                    |                        |        |                        |  |                        |   

Quarter ended June 30, 2002 compared to the quarter ended June 30, 2001 and quarter ended June 30, 2000.

Revenue: Turnover for the three months
  ended June 30, 2002 decreased 30.4% from £12.5 million in the three months
  ended June 30, 2001 to £8.7 million (2000: £17.2 million). In the
  quarter ended June 30, 2002 Eidos shipped one new title, the Xbox version of
  Championship Manager: Season 01/02. (2001: three, 2000: four).

Gross Margin and Cost of Sales: Cost
  of sales includes manufacturing, distribution costs and royalties payable. Royalties
  payable comprise three elements: royalties payable to third party software licensors,
  royalties payable to third party developers and royalties payable to internal
  development teams. For the quarter to June 30, 2002 cost of sales was £5.1
  million, compared to £5.2 million and £9.1 million for the quarters
  ended June 30, 2001 and 2000, respectively.

The gross margin for the quarter ended June
  30, 2002 was 40.6% compared to 58.6% for the quarter ended June 30, 2001 and
  47.8% for the quarter ended June 30, 2000. The reduction in margin in 2002 was
  largely the result of the relatively high level of lower value back catalogue
  sales in the quarter, compared to the prior period. Improved controls over channel
  and inventory exposures contributed to the increase in gross margin in 2001.
  It is expected that margins will revert back to levels closer to those recorded
  in the quarter ended June 30, 2001 and for the twelve months ended March 31,
  2002 (59.5%) as the level of full price sales increases through the course of
  the current year.

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Operating expenses

Operating expenses before goodwill for the
  quarter ended June 30, 2002 were £19.1 million, compared to £18.5
  million for the same period last year and £27.1 million in 2000. The Group
  experienced a certain level of one-off costs related to the change in year end.
  It remains the Group's intention to agressively manage its fixed operating expenses.

Selling and Marketing

Advertising costs in the quarter ended June
  30, 2002 were £3.3 million compared to £1.9 million for the same
  period last year (2000: £5.0 million). The level of expenditure in the
  quarter ended June 30, 2002 is in large part a function of the anticipated release
  dates and expected sales volumes for titles due for release later in the year
  and therefore it is difficult to draw meaningful comparisons across the periods
  in question. Retail co-operative advertising expenses of £0.3 million
  and £0.5 million incurred in the USA in the quarters ended June 30, 2001
  and 2000 respectively, have been reclassified from turnover to advertising costs.
  This follows the treatment adopted during the twelve months ended March 31,
  2002 that more accurately reflects the nature of the expenditure and allows
  closer monitoring within the improved framework of controls on variable advertising
  spend.

The fixed element of selling and marketing costs for the quarter ended June 30, 2002 was £2.0 million compared to £2.1  million in the same period last year (2000: £4.3 million). There has been little material movement in the level of this fixed  element since 2001. Significant permanent savings were made from salary and license amortization costs in the Group's  publishing businesses during the year ended March 31, 2001 and the effect of these is shown in decline in expenditure  recorded in this area between 2001 and 2000.

Research and Development:Research and development represents the Company's total investment in product  development for the quarter ended June 30, 2002 of £9.2 million (2001: £9.6 million, 2000: £11.7 million). The  reduction in expenditure over the period reflects the continued move towards internal development, which is one of the  cornerstones of the Group's future development strategy.

General and Administrative:General and administrative costs before goodwill amortization were £4.6 million for the  quarter ended June 30, 2002, compared to £4.8 million in the corresponding period in 2001 and £6.1 million in 2000. The  reduction in like for like expenditure between 2001 and 2000 reflects permanent savings in salary and other costs. Total  general and administrative costs for the quarter ended June 30, 2002 were £4.7 million including goodwill amortization of  £0.1 million, compared to £7.6 million including goodwill amortization of £2.8 million in the quarter ended June 30, 2001  (£8.8 million in the quarter ended June 30, 2000 including goodwill amortization of £2.6 million). The reduction in the  amortization charge resulted from the goodwill relating to the 1998 acquisition of Crystal Dynamics becoming fully  amortized during the period.

Net Loss: Operating losses pre goodwill
  amortization increased 37% from £11.1 million in the three months ended
  June 30, 2001 to £15.2 million in the three months ended June 30, 2002
  (2000: £18.6 million). The net loss for the period was £16.5 million
  (2001: loss £15.4 million, 2000: loss £15.3 million). The loss per
  share was 11.8p, or 10.7p excluding goodwill in the three months ended June
  30, 2002, compared to 13.3p and 9.8p respectively in the same period in 2001
  (2000: loss of 13.3p or 9.9p excluding goodwill), based on a weighted average
  number of shares in issue during the period of 139,744,013 (2001: 115,570,183,
  2000: 115,106,060). The 2001 and 2000 comparatives for earnings per share have
  been restated for the Rights Issue that occurred during the twelve months to
  March 31, 2002, in accordance with FRS14  Earnings per share.

Financing and Cash flow:The Group had net cash balances of £59.1 million at June 30, 2002 (2001: £8.7 million). The  closing cash position at June 30, 2002 reflects the success of the Rights Issue in July 2001 and the disposal of the Group's
remaining stake in Opticom in November and December 2001. Included within this
sum is also £11.4 million that comprises a tax rebate of

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The net cash outflow from operating activities was £3.1 million for the three months ended June 30, 2002 compared to a  £8.4 million outflow in the corresponding period in 2001 and an outflow of £4.1 million in 2000. These outflows in these  periods reflect the operating losses incurred.

Taxation:The Group has incurred a small tax charge in the quarter to June 30, 2002 which comprises its share of the tax  charge borne by its profitable joint venture company, Proein SA. There are still significant loss carry forwards available  within the Group to offset future trading profits. The Group has however reviewed the provisions of FRS19  Deferred Tax,  and believes that no further amounts should be recognised in respect of these losses or of those incurred in the quarter.

There was no charge for the quarter to June 30, 2001 based on losses incurred and the release of a provision in respect of  prior years. A tax credit of £7.0 million was recognized during the quarter to June 30, 2000 based on the projected  underlying tax rate for the year.

Critical Accounting Policies

In preparing the consolidated financial statements
  in accordance with both UK GAAP and US GAAP senior management have to make certain
  key assumptions and estimates that affect the reported amounts of assets and
  liabilities and disclosure of contingent liabilities at the date of the financial
  statements and the reported amounts of revenues and expenses during the reporting
  periods. In doing so, they have to exercise considerable judgement in respect
  of matters which are inherently uncertain. The accounting policies described
  below are considered critical by senior management because they provide the
  framework within which the Group attempts to quantify and assess the assumptions
  and estimates which have the greatest bearing on the consolidated financial
  statements. Any change in the estimates used could materially affect the reported
  results and actual conditions may differ from those assumed.

Sales Returns and Allowances and Price Protection Reserves

The majority of the Groups reported revenue is derived from the sale of pre-packaged entertainment software. Revenue is  recorded at the point of sale, net of taxes and provisions for future returns and price protection. In common with other  publishers of entertainment software the Group operates a number of territory-specific programmes under which  retailers may qualify to return unsold product, subject to certain qualifying conditions. Alternatively the Group may offer  price protection programmes in certain markets, though again these are subject to the satisfaction of certain qualifying  conditions. Typically the Group maintains a policy of issuing credits under such programmes.

By analysing historical rates of return and price protection in conjunction with a number of key variables including the  prevailing market and economic conditions at that time, the Group is able to estimate future expected rates of returns and  price protection. The adequacy of the reserves generated by these estimated rates is reviewed regularly in the light of  current market and economic conditions, considering in particular up to date patterns of sell-through, anticipated trends  in the hardware and software markets, seasonal factors, perceived consumer preferences and general economic  conditions.

In the past the Group has not always been able to accurately estimate the adequacy of its reserves and in the year ended  March 31, 2001 reported an exceptional charge of £16.9 million in respect of additional returns reserves required. At the  time the Group reported that this was

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caused by the sell through of products released
  in the previous year being less than anticipated as a result of continuing consumer
  uncertainty surrounding the release of new video game hardware platforms. Since
  then all of the new hardware platforms have now been successfully launched and
  senior management have taken significant steps to impose new procedures and
  controls on the estimation of the Group's exposure to future returns and price
  protection. In addition measures have been put in place to control the flow
  of new product into the market place as over stocking in retail and distribution
  channels may also generate significant future exposures for the Group. The senior
  management of the Group believes that the controls that they have put in place
  enable it to make a more realistic estimation of the group's exposure to future
  returns and price protection. Nevertheless if the Group were to change certain
  of the key estimates or assumptions that underpin its calculations, then the
  level of reserves carried at the balance sheet date would be altered as would
  the reported net loss for the period. Similarly if actual credits issued for
  returns and price protection are in excess of the level of reserves carried,
  then future reported revenues might be reduced in the future. Conversely if
  the level of actual credits is less than the reserve, then this could increase
  future reported revenues. The Group's total reserve in respect of future returns
  and price protection at June 30, 2002 was £11,594,000. (June 30, 2001:
  £14,004,000).

Pre-paid license fees

The Group prepays certain licence fees paid to celebrities and professional sports organisations for the use of their name  over a number of years or for a range of products. Prepaid royalties are charged to the profit and loss account as sales and  marketing expenditure over the life of the licence. Management regularly reviews the carrying value of such licences and  where it appears unlikely that any remaining prepaid amounts will be recovered through the sale of future licensed titles,  then these remaining amounts will be expensed in full immediately. In reviewing the recoverability of prepaid royalties,  senior management relies on forecasts of future revenues. If revised revenue forecasts fall below the original forecasts,  then the charge to the profit and loss account may be greater than expected in any given reporting period. The total  amount of pre-paid royalties carried within debtors at June 30, 2002 was £2,516,000 (June 30, 2001:
£3,587,000).

Taxes

The estimation of the Group's consolidated
  tax charge is a complex matter encompassing many different international tax
  jurisdictions. In calculating the Group charge management has to make certain
  estimations regarding individual exposures in different countries and assess
  the recoverability of deferred tax assets. It can often take many years to finalise
  individual tax charges and to reach agreement on areas of contention with the
  relevant tax authorities. There is no guarantee that the level of provision
  carried in respect of open tax items at any one time, will be sufficient to
  meet final liabilities as they are agreed and fall due. In reviewing the recoverability
  of deferred tax assets the Group has to estimate future taxable income for the
  relevant countries. To the extent that these estimations indicate that any such
  assets are not recoverable, then full provision will be made against their carrying
  value. Changes in the estimates used to assess the rec overability of deferred
  tax assets could affect the level of assets carried in the balance sheet at
  the period- end and also the level of tax charge in the profit and loss account
  for the period.

Valuation of Investments and Asset Impairment

The Group capitalises and amortises goodwill in respect of the acquisition of certain subsidiaries and associated  undertakings in accordance with FRS10: Goodwill and Intangibles. Certain other investments in subsidiaries and  associated undertakings are carried at cost. The Group makes certain estimates regarding the useful life of goodwill that  take account of a number of factors including the future prospects for the entity concerned and the consequent  projections for both net income and net cash-flow. To the extent that these projections no longer justify
the carrying value of any remaining goodwill, then the amortisation charge will
be accelerated to the degree required to reflect the revised estimate of the fair
value of the goodwill. The carrying value of

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investments carried at cost are also reviewed in a similar fashion and to the
extent that an investment's carrying value can be shown to be permanently impaired,
then full provision will be made through the profit and loss account.

The estimates used in assessing the carrying value of both goodwill and investments carried at cost rely on assumptions  made about the performance and prospects of the entities themselves and also about the markets in which they operate.  Where the entities do not have an established track record or where they are operating in new or emerging markets then  the inherent uncertainty in forecasting future performance may be compounded.

To the extent that projections no longer substantiate the recorded values of either goodwill or investments carried at cost,  then net income may be adversely affected. The value of unamortised goodwill held within intangible assets at June 30,  2002 was £1,021,000. (June 30, 2001: £9,090,000). The carrying value of investments carried at cost within fixed asset  investments at June 30, 2002 was £3,319,000. (June 30, 2001: £5,102,000)

Valuation of inventory

The Group carries its inventory of finished goods at the lower of cost and net realisable value. In order to determine what  this carrying value should be, management has to estimate the price that they expect to achieve on the future sale of the  stock. This process involves reviewing current patterns of demand in the market and projecting these forward. It may also  require an assessment of how future demand could be affected by changes in the wholesale price charged by the Group  and by other factors that may be beyond the control of the group. In this way management will seek to determine the  most realistic price that they believe can be achieved and hence the likelihood that inventories on hand can be sold at or  above cost. Should management's estimations of current or future demand prove to be unrealistic, then the Group may  fail to achieve a wholesale price that is sufficient to cover the carrying value of the inventory and hence the charge to the  profit
and los


s account may be greater than expected.

The total amount of inventory on hand at June 30, 2002 was £3,390,000 (June 30, 2001: £2,847,000).

New Accounting Standards

New UK Accounting Standards and Pronouncements
  Applicable to the Group

There were no new UK accounting standards applicable to the Group.

New US Accounting Standards and Pronouncements
  Applicable to the Group

Goodwill and Intangible Assets

In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard  ("SFAS") No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141  requires that the purchase method of accounting be used for all business combinations initiated after June 30, 2001 as  well as all purchase method business combinations completed after June 30, 2001. SFAS No. 141 also specifies criteria  intangible assets acquired in a purchase method business combination must meet to be recognized and reported apart  from goodwill, noting that any purchase price allocable to an assembled workforce may not be accounted for separately.  SFAS No. 142 will require that goodwill and intangible assets with indefinite useful lives no longer be amortized, but  instead tested for impairment at least annually in accordance with the provisions of SFAS No. 142. SFAS No. 142 will also  require that



intang


ible assets with definite useful lives be amortized over their respective estimated useful lives to their  estimated residual values, and reviewed for impairment in accordance with SFAS No. 144, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of.

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The Group is required to adopt the provisions of SFAS No. 141 immediately and SFAS No. 142 is effective for fiscal years  beginning after December 15, 2001. Furthermore, any goodwill and any intangible asset determined to have an indefinite  useful life that are acquired in a purchase business combination completed after June 30, 2001 will not be amortized, but  will continue to be evaluated for impairment in accordance with the appropriate pre-SFAS No. 142 accounting literature.  Goodwill and intangible assets acquired in business combinations completed before July 1, 2001 will continue to be  amortized prior to the adoption of SFAS No. 142.

SFAS No. 141 requires that the Group evaluate its existing intangible assets and goodwill that were acquired in a prior  purchase business combination, and to make any necessary reclassifications in order to conform with the new criteria in  SFAS No. 141 for recognition apart from goodwill. SFAS No. 142 requires the Group to reassess the useful lives and  residual values of all intangible assets acquired in purchase business combinations, and make any necessary  amortization period adjustments by the end of the first interim period after adoption. In addition, to the extent an  intangible asset is identified as having an indefinite useful life, the Group is required to test the intangible asset for  impairment in accordance with the provisions of SFAS No. 142 within the first interim period. Any impairment loss is  measured as of the date of adoption and recognized as the cumulative effect of a change in accounting principle.

In connection with the transitional goodwill impairment evaluation, SFAS No. 142 requires the Group to perform an  assessment of whether there is an indication that goodwill and equity method goodwill is impaired as of the date of  adoption. To accomplish this the Group must identify its reporting units and determine the carrying value of each  reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those  reporting units as of the date of adoption. The Group has up to six months from the date of adoption to determine the fair  value of each reporting unit and compare it to the reporting unit's carrying amount. To the extent a reporting unit's  carrying amount exceeds its fair value, an indication exists that the reporting unit's goodwill may be impaired and the  Group must perform the second step of the transitional impairment test. In the second step, the Group must compare the  implied fair value of the
reporting


 unit's goodwill, determined by allocating the reporting unit's fair value to all of it assets  (recognized and unrecognised) and liabilities in a manner similar to a purchase price allocation in accordance with SFAS  No. 141, to its carrying amount, both of which would be measured as of the date of adoption. This second step is required  to be completed as soon as possible, but no later than the end of the year of adoption. Any transitional impairment loss  will be recognized as the cumulative effect of a change in accounting principle in the Group's statement of earnings.

And finally, any unamortized negative goodwill and negative equity-method goodwill existing at the date SFAS No. 142  was adopted must be written off as the cumulative effect of a change in accounting principle.

At March 31, 2002, the Group was required
  to segregate and specifically identify intangible assets into goodwill and other
  intangible assets. Intangible assets recorded in our consolidated financial
  statements comprise only goodwill. In addition, because of the extensive effort
  required to comply with SFAS No. 141 and 142, it is not practicable to reasonably
  estimate the impact of any transitional impairment losses required to be recognised
  as the cumulative effect of a change in accounting principle at the date of
  this document.

Impairment or Disposal of Long-Lived Assets

SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, addresses financial accounting and reporting for the impairment or disposal of long-lived assets. While SFAS No. 144 supersedes SFAS No. 121, Accounting  for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, it retains many of the fundamental  provisions of that Statement. SFAS No. 144 also supersedes the accounting and reporting provisions
of APB Opinion No. 30, Reporting the Results of Operations-Reporting the Effects
of Disposal of a

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Segment of a Business, and Extraordinary, Unusual and Infrequently
Occurring Events and Transactions, for the disposal of a segment and extends that
reporting to a component of an entity that either has been disposed of (by sale,
abandonment, or in a distribution to owners) or is classified as held for sale.

SFAS No. 144 is effective for fiscal years beginning after December 15, 2001 and interim periods within those fiscal years.  The Statement is to be applied prospectively. Early adoption is permitted. The Group has not yet determined the impact, if  any, the adoption of this standard will have on its financial position or results of operations.

Liquidity and Capital Resources

The Group's policy is to use a combination of committed bank facilities and equity in order to ensure that it has sufficient  financial resources to meet its short and long term funding requirements.

As at June 30, 2002, the Group had undrawn
  committed facilities of £15.8 million, denominated £15 million in
  Sterling and £0.8m in Japanese Yen. In July 2001 the Group successfully
  completed a 1 for 3 Rights Issue raising £51.6 million, net of costs.
  Following the successful Rights Issue and the sale of its remaining stake in
  Opticom, the Group did not need to draw down against its Sterling facility during
  the quarter ended June 30, 2002. Under the terms of the Sterling facility, a
  draw down would only have been permissible if certain covenants had been complied
  with. During the quarter, one of these covenants was not met. The Group does
  not believe that this factor affected either its commercial credit rating or
  its ability to access alternative sources of financing.

The Group also held short-term deposits at June 30, 2002 of £38.1 million. Credit risk on transactions is minimized by  operating within the parameters of the Group treasury policy. Most of the Group's surplus funds are held in the United  Kingdom and there are no material funds as to which repatriation is restricted as a result of foreign exchange regulations.

The Group has now negotiated a new revised £15 million facility with the Royal Bank of Scotland. It will be made  available to the Group for 364 days from the date of signing. The facility has a covenant package that will vary over its  term. Should the Group fail to meet any of the covenants which apply at any given point in time, then it may be unable to  draw down under the facility. Other factors which may affect the Group's ability to maintain an appropriate level of  liquidity include, but are not limited to, the degree to which the new product releases achieve market acceptance, the  ability to collect account's receivable as they fall due and general economic conditions in the major markets in which the  Group operates.

The Group believes that the requirements of
  its existing business and future investment can be met for at least the next
  12 months from the capital raised from the rights issue, cash generated internally
  and from the £15 million bank facility.

Capital Resources

At June 30, 2002, the Group had net assets
  of £56.6 million, compared to £14.6 million at June 30, 2001. The
  increase mainly arises from the proceeds from the rights issue discussed above,
  less net losses incurred since then.

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Net assets as at June 30, 2002 included goodwill
  of £1.0 million (2001: £9.1 million), tangible fixed assets and
  investments of £8.5 million (2001: £9.5 million), net current assets
  of £49.7 million (2001 net current liabilities: £1.7 million) and
  other liabilities of £2.7 million (2001: £2.4 million).

Net funds (ie net cash less net debt) increased
  by £69.6 million from June 30, 2001 to June 30, 2002. Operating activities
  generated a net cash outflow of £3.1 million (2001: cash outflow of £8.4
  million).

Material commitments

The following table shows amounts committed
  to as at June 30, 2002. Further details are available in Item 18, Notes 26 and
  27.

|                                                                          | As at June 30, 2000 |               | As at June 30, 2001 |  | As at June 30, 2002 | 
|------------------------------------------------------------------------- | ------------------- | ------------- | ------------------- |  | ------------------- | 
|                                                                          |                     | <1
      year |                     |  | 2-5 years           | 
|                                                                          |                     |               |                     |  |                     | 
|                                                                          |                     | £'000         |                     |  | £'000               | 
|In thousands                                                              |                     |               |                     |  |                     | 
|Payments to developers                                                    |                     | 9,052         |                     |  | 2,686               | 
|Land
        and Building  annual operating lease commitments            |                     | 50            |                     |  | 558                 | 
|Motor
        vehicles and equipment  annual operating lease commitments |                     | 120           |                     |  | 364                 | 
|                                                                          |                     |               |                     |  |                     | 
|Total                                                                     |                     | 9,222         |                     |  | 3,608               | 
|                                                                          |                     |               |                     |  |                     | 

The Euro

On January 1, 1999, 11 of the 15 European
  Union member states irrevocably locked their currencies at fixed rates of exchange
  and adopted a new currency, the Euro. Effective from that date the Euro became
  legal currency in those member states for all financial transactions except
  for those involving notes or coins. Early in 2002 Euro notes and coins were
  introduced to replace the respective local currencies of the participating member
  states. It is not clear whether or when the United Kingdom will adopt the Euro,
  such a change requiring a decision by the UK Government to proceed. The current
  UK Government has stated that it would subsequently hold a national referendum
  on the issue of entry into the European Monetary Union.

The financial information systems used in the European offices are all capable of operating in multiple currencies  including the Euro. The costs relating to the introduction of the Euro have been negligible.

To date, the Group has not yet experienced
  any significant margin erosion due to retail price-points moving to the Euro.
  As the introduction of the Euro is still in the initial stages we will continue
  to monitor the position carefully. Whilst there is no consistent Pan-European
  price-point, we are seeing closer parity in pricing in the major markets and
  where this does not occur in the 'smaller' markets, product localisation continues
  to minimise any grey import.

Research and Development, Patents and Licenses

During the quarters ended June 30, 2000, 2001
  and 2002 the Group has invested a total of just over £30.5 million (including
  employment costs) on research and development. The investment relates mainly
  to developing entertainment software as well as some video compression, processing
  and storage technology research and development. Such investments were made
  in the United Kingdom and the United States of America and consisted mainly
  of salaries and related employment costs incurred in the development of its
  technology and games. See "Item 5  Operating and Financial Review
  and Prospects".

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Trend Information

The following trends could have a material impact of the Group's net revenues, liquidity and capital resources.

|a) | The market for video games follows a cycle that is defined by the introduction of new hardware platform that replace older and technically obsolescent platforms. The market for video games is widely believed to be in the upswing of its current cycle as all of the next generation consoles have now been launched and are gaining varying degrees of market acceptance. It is highly likely that this cycle will enter its down swing in the next two to three years as the major manufacturers of videogame platforms announce and introduce their next generation of hardware.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|b) | The Group may invest in its core business of developing and publishing computer and video games through either or both of organic growth and acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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PART III

ITEM 18  FINANCIAL STATEMENTS

Consolidated Statements and Other Financial Information

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Stockholders

Eidos plc

We have audited the accompanying consolidated
  balance sheet of Eidos plc and subsidiaries as of June 30, 2002, and the related
  consolidated statement of operations, statement of total recognized gains and
  losses, cash flows, and changes in stockholders' equity for the three month
  period ended June 30, 2002. These consolidated financial statements are the
  responsibility of the Company's management. Our responsibility is to express
  an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and United  States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about  whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence  supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting  principles used and significant estimates made by management, as well as evaluating the overall financial statement  presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial  position of Eidos plc and subsidiaries as of June 30, 2002, and the results of their operations and their cash flows for the  three month period ended June 30, 2002, in conformity with generally accepted accounting principles in the United  Kingdom.

Accounting principles generally accepted in the United Kingdom vary in certain significant respects from accounting  principles generally accepted in the United States. Application of accounting principles generally accepted in the United  States would have affected results of operations for the three month period ended June 30, 2002 and stockholders' equity  as of June 30, 2002, to the extent summarized in Note 31 to the Consolidated Financial Statements.

London, England

KPMG Audit PlcSeptember 5, 2002

Chartered Accountants and Registered Auditor

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EIDOS PLC AND SUBSIDIARIES
  CONSOLIDATED BALANCE SHEETS

|                                                        | Notes |    | June 30, 2001 |             | June 30, 2002 |      
|------------------------------------------------------- | ----- | -- | ------------- | ----------- | ------------- | -----
|                                                        |       |    |               |             |               |      
|                                                        |       |    |               | (unaudited) |               |      
|                                                        |       |    |               | £'000       |               | £'000
|Fixed
        assets                                    |       |    |               |             |               |      
|Goodwill                                                |       | 11 |               |             |               |      
|Tangible assets                                         |       | 12 |               |             |               |      
|Investments                                             |       |    |               |             |               |      
|Joint
        ventures                                  |       |    |               |             |               |      
|Share
        of gross assets                           |       |    |               |             | 3,553         |      
|Share
        of gross liabilities                      |       |    |               |             | (1,079        | )    
|                                                        |       |    |               |             |               |      
|                                                        |       | 13 |               |             |               |      
|Joint venture goodwill                                  |       | 11 |               |             |               |      
|Other investments                                       |       | 13 |               |             |               |      
|                                                        |       |    |               |             |               |      
|Total investments                                       |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|Total fixed assets                                      |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|Current assets                                          |       |    |               |             |               |      
|Stocks                                                  |       | 14 |               |             |               |      
|Debtors, net of allowance for doubtful accounts         |       | 15 |               |             |               |      
|Cash at bank and in hand                                |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|Creditors: amounts falling due within one year          |       | 16 |               |             |               |      
|                                                        |       |    |               |             |               |      
|Net current assets/ (liabilities)                       |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|Total assets less current liabilities                   |       |    |               |             |               |      
|Creditors: amounts falling due after more than one year |       | 17 |               |             |               |      
|Provisions for liabilities and charges                  |       | 18 |               |             |               |      
|                                                        |       |    |               |             |               |      
|Net assets                                              |       |    |               |             |               |      
|                                                        |       |    |               |             |               |      
|Capital and reserves                                    |       |    |               |             |               |      
|Called up share capital                                 |       | 20 |               |             |               |      
|Share premium account                                   |       | 22 |               |             |               |      
|Other reserves                                          |       | 22 |               |             |               |      
|Profit and loss account                                 |       | 22 |               |             |               |      
|                                                        |       |    |               |             |               |      
|Equity shareholders' funds                              |       | 22 |               |             |               |      
|                                                        |       |    |               |             |               |      

The
  accompanying notes are an integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                            | Notes |    | 3
        months
        ended
        June 30,2000 |                         | 3
      months
      ended
      June 30,2001 |                         | 3
      months
      ended
      June 30,2002 |        
|----------------------------------------------------------- | ----- | -- | --------------------------------------------------- | ----------------------- | --------------------------------------------- | ----------------------- | --------------------------------------------- | -------
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|                                                            |       |    |                                                     | (unaudited)
      £'000 |                                               | (unaudited)
      £'000 |                                               | £'000  
|Turnover:
        Group (including share of joint ventures) |       |    |                                                     |                         | 19,398                                        |                         |                                               | 13,951 
|Less:
        share of turnover of joint ventures           |       |    |                                                     |                         | (2,071                                        | )                       |                                               | (1,485 
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Turnover                                                    |       | 3  |                                                     |                         | 17,327                                        |                         |                                               | 12,466 
|Cost
        of sales                                       |       |    |                                                     |                         | (9,091                                        | )                       |                                               | (5,158 
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Gross
        profit                                        |       |    |                                                     |                         | 8,236                                         |                         |                                               | 7,308  
|Selling
        and marketing                               |       |    |                                                     |                         | (9,260                                        | )                       |                                               | (4,022 
|Research
        and development                            |       |    |                                                     |                         | (11,744                                       | )                       |                                               | (9,614 
|General
        and administrative                          |       |    |                                                     |                         |                                               |                         |                                               |        
|Goodwill
        amortization                               |       |    |                                                     |                         | (2,647                                        | )                       |                                               | (2,827 
|Other
        general and administrative                    |       |    |                                                     |                         | (6,122                                        | )                       |                                               | (4,834 
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Group
        operating loss                                |       |    |                                                     |                         | (21,537                                       | )                       |                                               | (13,989
|Share
        of operating profit of joint ventures         |       |    |                                                     |                         | 289                                           |                         |                                               | 66     
|Joint
        venture goodwill amortization                 |       |    |                                                     |                         | (1,252                                        | )                       |                                               | (1,203 
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Loss
        from operations                                |       |    |                                                     |                         | (22,500                                       | )                       |                                               | (15,126
|Net
        interest income/(expense)                       |       | 6  |                                                     |                         | 166                                           |                         |                                               | (239   
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Loss
        before tax                                     |       | 7  |                                                     |                         | (22,334                                       | )                       |                                               | (15,365
|Income
        tax (benefit)/expense                        |       | 8  |                                                     |                         | 7,006                                         |                         |                                               |       
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Net
        loss                                            |       |    |                                                     |                         | (15,328                                       | )                       |                                               | (15,365
|                                                            |       |    |                                                     |                         |                                               |                         |                                               |        
|Loss
        per share(1)                                   |       | 10 |                                                     |                         | (13.3p                                        | )                       |                                               | (13.3p 
|Diluted
        loss per share(1)                           |       | 10 |                                                     |                         | (13.3p                                        | )                       |                                               | (13.3p 

| | 
| | 

|1) | In accordance with FRS14, all earnings
      per share figures have been restated for the Rights Issue that occurred
      during May 2001.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------

The
  accompanying notes are an integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF TOTAL RECOGNISED GAINS AND LOSSES

|                                                                          | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|------------------------------------------------------------------------- | ---------------------------- | ------- | ---------------------------- |  | ---------------------------- | -
|                                                                          |                              |         |                              |  |                              |  
|                                                                          | (unaudited)                  |         | (unaudited)                  |  |                              |  
|                                                                          | £'000                        |         | £'000                        |  | £'000                        |  
|Net loss for the period                                                   |                              | (15,328 | )                            |  | (15,365                      | )
|Consolidation translation differences on foreign currency net investments |                              | 786     |                              |  | (802                         | )
|                                                                          |                              |         |                              |  |                              |  
|Total recognized losses relating to the period                            |                              | (14,542 | )                            |  | (16,167                      | )
|                                                                          |                              |         |                              |  |                              |  

The accompanying notes are
  an integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY:

|                                                 | Ordinary
      2p shares |             | Additional
      paid upcapital |       | OtherReserves |       | Profit
      and lossaccount |         | Total |      
|------------------------------------------------ | ------------------------ | ----------- | ------------------------------- | ----- | ------------- | ----- | ---------------------------- | ------- | ----- | -----
|                                                 | Shares
      (#)         |             | Amount                         
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      
|                                                 |                          |             |                                 | £'000 |               | £'000 |                              | £'000   |       | £'000
|Balances
        as of April 1, 2001 (unaudited) |                          | 103,931,470 |                                 |       | 2,079         |       |                              | 85,822  |       |      
|Loss
        for the quarter                     |                          |            |                                 |       |              |       |                              |        |       |      
|Exchange
        differences                     |                          |            |                                 |       |              |       |                              |        |       |      
|Premium
        on issue of new shares           |                          | 56,878      |                                 |       | 1             |       |                              | 99      |       |      
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      
|Balances
        as of June 30, 2001 (unaudited) |                          | 103,988,348 |                                 |       | 2,080         |       |                              | 85,921  |       |      
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      
|Balances
        as of April 1, 2002             |                          | 139,652,515 |                                 |       | 2,793         |       |                              | 137,988 |       |      
|Loss
        for the quarter                     |                          |            |                                 |       |              |       |                              |        |       |      
|Exchange
        differences                     |                          |            |                                 |       |              |       |                              |        |       |      
|Premium
        on issue of new shares           |                          | 100,840     |                                 |       | 2             |       |                              | 119     |       |      
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      
|Balances
        as of June 30, 2002             |                          | 139,753,355 |                                 |       | 2,795         |       |                              | 138,107 |       |      
|                                                 |                          |             |                                 |       |               |       |                              |         |       |      

The accompanying notes are
  an integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASHFLOW

|                                                                              | Notes |    | 3 months ended June 30, 2000 |             | 3 months ended June 30, 2001 |             | 3 months ended June 30, 2002 |        
|----------------------------------------------------------------------------- | ----- | -- | ---------------------------- | ----------- | ---------------------------- | ----------- | ---------------------------- | -------
|                                                                              |       |    |                              |             |                              |             |                              |        
|                                                                              |       |    |                              | (unaudited) |                              | (unaudited) |                              |        
|                                                                              |       |    |                              | £'000       |                              | £'000       |                              | £'000  
|Net cash inflow/(outflow) from operating activities                           |       | 23 |                              |             | 4,085                        |             |                              | (8,448 
|                                                                              |       |    |                              |             |                              |             |                              |        
|Returns on investment and servicing of finance                                |       |    |                              |             |                              |             |                              |        
|Interest received                                                             |       |    |                              |             | 428                          |             |                              | 146    
|Bank interest paid                                                            |       |    |                              |             | (1,467                       | )           |                              | (402   
|Interest paid on finance leases                                               |       |    |                              |             | (7                           | )           |                              |       
|                                                                              |       |    |                              |             |                              |             |                              |        
|                                                                              |       |    |                              |             | (1,046                       | )           |                              | (256   
|                                                                              |       |    |                              |             |                              |             |                              |        
|Taxation                                                                      |       |    |                              |             |                              |             |                              |        
|UK
        taxation (paid)/repaid                                             |       |    |                              |             | (9,417                       | )           |                              | (9,898 
|Overseas taxation paid                                                        |       |    |                              |             | (763                         | )           |                              | (722   
|                                                                              |       |    |                              |             |                              |             |                              |        
|                                                                              |       |    |                              |             | (10,180                      | )           |                              | (10,620
|                                                                              |       |    |                              |             |                              |             |                              |        
|Capital expenditure and financial investment                                  |       |    |                              |             |                              |             |                              |        
|Purchase of tangible fixed assets                                             |       |    |                              |             | (564                         | )           |                              | (260   
|Sale of tangible fixed assets                                                 |       |    |                              |             | 76                           |             |                              | 10     
|Sale of investments                                                           |       |    |                              |             | (641                         | )           |                              |       
|                                                                              |       |    |                              |             |                              |             |                              |        
|                                                                              |       |    |                              |             | (1,129                       | )           |                              | (250   
|                                                                              |       |    |                              |             |                              |             |                              |        
|Net cash (outflow)/inflow before financing and management of liquid resources |       |    |                              |             | (8,270                       | )           |                              | (19,574
|                                                                              |       |    |                              |             |                              |             |                              |        
|Management of liquid resources                                                |       |    |                              |             |                              |             |                              |        
|Decrease in term deposits                                                     |       |    |                              |             |                             |             |                              |       
|                                                                              |       |    |                              |             |                              |             |                              |        
|Financing                                                                     |       |    |                              |             |                              |             |                              |        
|Issue of new ordinary shares                                                  |       |    |                              |             | 74                           |             |                              | 100    
|Repayment of principal under finance leases                                   |       |    |                              |             | (98                          | )           |                              | (58    
|                                                                              |       |    |                              |             |                              |             |                              |        
|                                                                              |       |    |                              |             | (24                          | )           |                              | 42     
|                                                                              |       |    |                              |             |                              |             |                              |        
|Increase/(decrease) in cash in the period                                     |       |    |                              |             | (8,294                       | )           |                              | (19,532
|                                                                              |       |    |                              |             |                              |             |                              |        

The accompanying notes are
  an integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIES
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 Nature of Business and Organization

The activities of Eidos plc ("Eidos" or the "Company") and subsidiaries (including Eidos, the "Group") during the periods  presented herein were the developing and publishing of interactive software titles for PC and certain games consoles  (under license with the console manufacturer), the design, manufacture and sale of video compression and video editing  software, post-production video editing and new media design and consultancy.

Currently the principal markets for the Group's products, all of which are similar in size based on turnover, are the United  States, United Kingdom and Continental Europe. Asia and the Rest of the World make up a small but growing part of the  Group revenue. Computer software titles are sold primarily to wholesale and retail distributors.

The computer games industry is characterized by the dominance of "hit titles"; consequently a relatively small number of  titles (or franchises) will often make up a significant proportion of turnover and net income. Eidos' stated policy is to  concentrate on quality titles and consequently titles which management believes to be marginal are often terminated or  sub-licensed.

2 Summary of Significant Accounting Policies

The financial statements have been prepared
  under the historical (UK GAAP) cost convention and in accordance with applicable
  Accounting Standards in the United Kingdom. A summary of the more important
  Group accounting policies, which have been applied consistently, and, where
  appropriate, a description of any areas of judgement which could have a material
  affect on the consolidated financial statements of the Group is set out below.

Generally accepted accounting principles in
  the United Kingdom (UK GAAP) differ in certain significant respects from those
  in the United States (US GAAP). Application of US GAAP would have affected shareholders
  funds and results of operations at June 30, 2001 and 2002 and for the three
  months ended June 30, 2000, 2001 and 2002 to the extent summarized in Note 31.

Basis of preparation

In the UK, the directors have prepared statutory consolidated financial statements for Eidos plc for the fifteen months to  June 30, 2002. The statutory consolidated accounts have been prepared in accordance with the measurement principles  within applicable accounting standards, under historical cost basis of accounting and the Companies Act, as if those  requirements were to apply except that only consolidated amounts have been presented. In the US, the directors have  prepared 2 Form 20-Fs, one covering the twelve months to March 31, 2002 and this transitional Form 20-F covering the  three months to June 30, 2002. This three months is not a statutory period. The comparative figures for the quarter to  June 30, 2001 and 2000 are not the company's statutory accounts for those periods and were based on quarterly results  released in those periods and previously filed on Form 6-K.

Changes in Presentation of Financial Statements
  and Reclassification

In accordance with FRS14, the earnings per share figures for June 30, 2000 and 2001 have been restated for the Rights  Issue that occurred during the year.

Certain co-operative advertising expenses that were previously charged against Turnover have now been reclassified as  an expense within Sales and marketing costs and the June 30, 2001 and 2000 comparatives have been restated to reflect  this.

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The figures for research and development and general and administrative expenses have been restated in the quarter  ended June 30, 2001 and 2000 for a change in the classification of certain expenses that occurred in the period.

Financial Reporting Standard 19 Deferred Tax
  (FRS 19) has been adopted by the Group. Under FRS 19, deferred tax is provided
  for on certain timing differences in full. FRS 19 requires prior years to be
  restated. However the impact on net income of the implementation of FRS 19 on
  the Group was nil for the quarters ended June 30, 2000, 2001 and 2002. In accordance
  with FRS 19, deferred tax assets are regarded as recoverable to the extent that,
  on the basis of all available evidence, it can be regarded as more likely than
  not that evidence, it can be regarded as more likely than not that there will
  be suitable taxable profits from which the future reversal of the underlying
  timing differences can be deducted. See Note 19 for an analysis of deferred
  taxes.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings.  The results of subsidiaries sold or acquired are included in the consolidated income statement up to, or from, the date  control passes. Intra-group sales and profits are eliminated fully on consolidation.

On acquisition of a subsidiary, all of the subsidiary's assets and liabilities that exist at the date of acquisition are recorded  at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains  and losses, that arise after the Group has gained control of the subsidiary are charged to the post acquisition statements  of operations.

Associated undertakings and joint arrangements

Associated undertakings are undertakings in which the Group holds a long term interest and over which it actually  exercises significant influence. Joint ventures are undertakings that are jointly controlled with other entities or  individuals. The Group's share of profits less losses from associated undertakings is included in the profit and loss  account on the equity accounting basis. The holding value of associated and joint undertakings is based upon the Group's  equity in net assets of such undertakings, as shown by the most recent accounts available.

Goodwill

Goodwill in respect of acquisitions of subsidiaries and associated undertakings represents the excess of the fair value of  the consideration given over the fair value of the identifiable net assets acquired. Goodwill arising prior to April 1, 1998  has been written off immediately against reserves. Goodwill arising after April 1, 1998 has been capitalized and amortized  to nil in the profit and loss account over the estimated economic life in accordance with FRS 10.

A charge is recognized in income in respect of any impairment in the value of goodwill. Goodwill written off directly to  reserves and not previously charged to income is included in determining the income or loss on disposal of a subsidiary.

Goodwill previously written off to reserves was not reinstated in the balance sheet when FRS 10 was adopted. It has been  set off against the merger reserve with the balance being set off against the profit and loss account reserve.

Given the nature of the industry, the useful
  economic life of goodwill is estimated to be three years and the intangible
  asset is being amortized over this period. In deriving the estimated useful
  economic life of goodwill the Group takes account of a number of factors including
  the future prospects for the entity concerned and the consequent projections
  for both net income and net cash-flow. To the extent that these projections
  no longer justify the carrying value of any remaining goodwill, then the amortization
  charge will be accelerated to the degree required to reflect the revised estimate
  of the fair value of the goodwill. The estimates used in assessing the carrying
  value of goodwill carried at cost rely on assumptions made about the performance
  and

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prospects of the entities themselves and also about the markets in which  they operate. Where the entities do not have an established track record or where they are operating in new or emerging  markets then the inherent uncertainty in forecasting future performance may be compounded.

Turnover

Turnover, which excludes sales between Group companies, represents the invoiced amounts of goods sold, net of  provisions for returns, value added tax and trade discounts (excluding  co-operative advertising expenses). Revenue from royalty agreements is recognized upon reaching specific dates set  out in royalty contracts. In the case of minimum royalty agreements revenue is recognized when the amounts are  contractually due and are non-refundable.

The majority of the Group's reported turnover
  is derived from the sale of pre-packaged entertainment software. Turnover is
  recorded at the point of sale, net of taxes and provisions for future returns
  and price protection. In common with other publishers of entertainment software
  the Group operates a number of territory-specific programmes under which retailers
  may qualify to return unsold product, subject to certain qualifying conditions.
  Alternatively the Group may offer price protection programmes in certain markets,
  though again these are subject to the satisfaction of certain qualifying conditions.
  Typically the Group maintains a policy of issuing credits under such programmes.
  By analysing historical rates of return and price protection in conjunction
  with a number of key variables including the prevailing market and economic
  conditions at that time, the Group is able to estimate future expected rates
  of returns and price protection. The adequacy of the reserves generated by these
  estimated rates is reviewed regularly in the light of current market and economic
  conditions, considering in particular up to date patterns of sell-through, anticipated
  trends in the hardware and software markets, seasonal factors, perceived consumer
  preferences and general economic conditions. If the Group's estimates of future
  expected returns and price protection are not adequate, the charges to the profit
  and loss account may be greater than expected in any given reporting period.

Tangible fixed assets

The cost of fixed assets is their purchase cost, together with any incidental costs of acquisition. Provision is made for  depreciation on all tangible fixed assets at rates calculated to write off the cost less residual value of each asset over its  expected useful life as follows:

|Leasehold improvements | Over the life
      of the lease 
|---------------------- | ---------------------------------
|Fixture and fittings   | 20% per annum straight
      line
|Computer equipment     | 33% per annum straight
      line
|Motor vehicles         | 25% per annum straight
      line

Research and development

All research and development expenditure is charged to income as incurred. This includes all software development  expenditure on individual titles, advance royalties paid under publishing agreements to external developers and advance  royalties paid under licensing arrangements.

Investments

Investments held as fixed assets are stated at cost less provision for any impairment in value.

In determining whether there has been any
  permanent impairment in the carrying value of investments the Group takes account
  of a number of factors including the future prospects for the entities concerned
  and the consequent projections for both net income and net cash-flow. To the
  extent that these projections no longer justify the carrying value of an investment
  then a provision will be made through the profit and loss account to reflect
  the revised estimate of the fair value of the investment. The estimates used
  in assessing the carrying value of investments rely on assumptions made about
  the performance and prospects of the entities themselves and also about the
  markets in which they operate. Where the entities do not have an established
  track

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record or where they are operating in new or emerging markets then the  inherent uncertainty in forecasting future performance may be compounded and in certain circumstances the  investments may be recorded at a net nil cost on acquisition.

License fees

License fees payable to celebrities and professional sports organizations for use of their name over a number of years or  for a range of products (a franchise), including sub-license arrangements and fees payable through intermediaries, are  charged to income as sales and marketing expenditure over the life of the license. License fees are classified as current  and non-current assets based on the remaining life of the license.

Management regularly reviews the carrying
  value of such licenses and where it appears unlikely that any remaining prepaid
  amounts will be recovered through the sale of future licensed titles, then these
  remaining amounts will be expensed in full immediately. In reviewing the recoverability
  of prepaid royalties and licenses, senior management relies on forecasts of
  future revenues. If revised revenue forecasts fall below the original forecasts,
  then the charge to the profit and loss account may be greater than expected
  in any given reporting period.

Deferred taxation

Deferred tax is recognised, without discounting,
  in respect of all timing differences between the treatment of certain items
  for taxation and accounting purposes which have arisen but not reversed by the
  balance sheet date, except as otherwise required by UK Accounting Standards. In reviewing the recoverability of deferred tax assets the Group has to estimate future taxable income for the relevant countries.

Tax charges or credits arising on the retranslation of foreign currency borrowings used to finance or provide a hedge  against equity investments in foreign enterprises are taken to the Statement of Total Recognised Gains and Losses  together with the exchange differences on the borrowings themselves.

The estimation of the Group's consolidated
  tax charge is a complex matter encompassing many different international tax
  jurisdictions. In calculating the Group charge management has to make certain
  estimates regarding individual exposures in different countries and assess the
  recoverability of deferred tax assets. It can often take many years to finalise
  individual tax charges and to reach agreement on areas of contention with the
  relevant tax authorities. In reviewing the recoverability of deferred tax assets
  the Group has to estimate future taxable income for the relevant countries.
  To the extent that these estimations indicate that any such assets are not recoverable,
  then full provision will be made against their carrying value.

Foreign currencies

Assets and liabilities of subsidiaries in foreign currencies are translated into sterling at rates of exchange ruling at the end  of the financial year. The results and cash flows of foreign subsidiaries are translated at the average rate of exchange for  the year. Gains and losses on exchange arising from the re-translation of the opening net investment in subsidiary  companies and from the translation of the results of those companies are taken to reserves and are reported in the  statement of total recognized gains and losses. Exchange differences arising from the re-translation of long-term foreign currency borrowings used to finance foreign currency investments are also taken to  reserves. All other foreign exchange differences are taken to income in the year in which they arise.

Stocks

Stocks are valued at the lower of cost and net realizable value. In general, cost is determined on a first in, first out basis  and includes transport and handling costs.

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The Group carries its inventory of finished goods at the lower of cost and net realisable value. In order to determine what  this carrying value should be, management has to estimate the price that they expect to achieve on the future sale of the  stock. This process involves reviewing current patterns of demand in the market and projecting these forward. It may also  require an assessment of how future demand could be affected by changes in the wholesale price charged by the Group  and by other factors that may be beyond the control of the group. In this way management will seek to determine the  most realistic price that they believe can be achieved and hence the likelihood that inventories on hand can be sold at or  above cost.

Finance and operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Leasing agreements that  transfer to the Group substantially all the benefits and risks of ownership of an asset are treated as if the asset has been  purchased outright. These assets are included in fixed assets and the capital element of the leasing commitments is  shown as obligations under finance leases. The capital element of lease payments is applied to reduce the outstanding  obligations and the interest element is charged to income so as to give a constant periodic rate of charge on the  remaining balance outstanding at each accounting period. Assets held under finance leases are depreciated over the  shorter of the lease terms and the useful lives of equivalent owned assets.

Pensions

The Group operates various defined contribution pension schemes. Contributions are charged to income as they become  payable in accordance with the rules of the schemes.

Derivative financial instruments

The Group uses derivative financial instruments to reduce exposure to foreign exchange risk. The Group does not hold or  issue derivative financial instruments for speculative purposes.

For a forward foreign exchange contract to be treated as a hedge, the instrument must be related to actual foreign  currency assets or liabilities or to a probable commitment. It must involve the same currency or similar currencies as the  hedged item and must also reduce the risk of foreign currency exchange movements on the Group's operations. Gains  and losses arising on these contracts are deferred and recognized in the profit and loss account, or as adjustments to the  carrying amount of fixed assets, only when the hedged transaction has itself been reflected in the Group's accounts.

If an instrument ceases to be accounted for as a hedge, for example, because the underlying hedged position is  eliminated, the instrument is marked to market and any resulting profit or loss recognized at that time.

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires  management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure  of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during  the reporting periods. Actual results could differ from those estimates.

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3 Segmental Analysis

The analysis by class of business of the Group's turnover, income before taxation and assets for the years ended June 30,  2002, June 30, 2001 and June 30, 2000 is set out below.

Turnover by class of business

|                  | 3 months ended June 30, 2000 |        | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|----------------- | ---------------------------- | ------ | ---------------------------- |  | ---------------------------- | 
|                  |                              |        |                              |  |                              | 
|                  | (unaudited)                  |        | (unaudited)                  |  |                              | 
|                  | £'000                        |        | £'000                        |  | £'000                        | 
|Class of business |                              |        |                              |  |                              | 
|Computer software |                              | 16,241 |                              |  | 12,466                       | 
|Video editing     |                              | 1,086  |                              |  |                             | 
|                  |                              |        |                              |  |                              | 
|                  |                              | 17,327 |                              |  | 12,466                       | 
|                  |                              |        |                              |  |                              | 

Income/(loss) on ordinary activities before tax

|                  | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|----------------- | ---------------------------- | ------- | ---------------------------- |  | ---------------------------- | -
|                  |                              |         |                              |  |                              |  
|                  | (unaudited)                  |         | (unaudited)                  |  |                              |  
|                  | £'000                        |         | £'000                        |  | £'000                        |  
|Class of business |                              |         |                              |  |                              |  
|Computer software |                              | (22,156 | )                            |  | (15,353                      | )
|Video editing     |                              | (178    | )                            |  | (12                          | )
|                  |                              |         |                              |  |                              |  
|                  |                              | (22,334 | )                            |  | (15,365                      | )
|                  |                              |         |                              |  |                              |  

Net Assets/(liabilities)

|                  | 3 months ended June 30, 2001 |        | 3 months ended June 30, 2002 | 
|----------------- | ---------------------------- | ------ | ---------------------------- | 
|                  |                              |        |                              | 
|                  | (unaudited)                  |        |                              | 
|                  | £'000                        |        | £'000                        | 
|Class of business |                              |        |                              | 
|Computer software |                              | 17,341 |                              | 
|Video editing     |                              | (2,791 | )                            | 
|                  |                              |        |                              | 
|                  |                              | 14,550 |                              | 
|                  |                              |        |                              | 

Video editing was provided by Eidos Post Productions Ltd (formerly Glassworks Productions Ltd), an 85% subsidiary; the  business and assets of which were sold on December 15, 2000.

Turnover by destination

The Group manages its computer software business by geographical area.

Eidos has offices in the United Kingdom, United States, France, Germany, Japan and Singapore. The latter two do not  generate significant income in relation to the remainder of the Group and are included within the 'Rest of World' segment.  The French and German offices sell to other French and German speaking European countries (namely Belgium, Austria  and Switzerland). For reporting purposes these territories are included within 'Rest of Europe'.

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The turnover is attributable to the Group's principal activities and arose in the following geographical areas:

|                                 | 3 months ended June 30, 2000 |        | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|-------------------------------- | ---------------------------- | ------ | ---------------------------- |  | ---------------------------- | 
|                                 |                              |        |                              |  |                              | 
|                                 | (unaudited) £'000            |        | (unaudited) £'000            |  | £'000                        | 
|United Kingdom                   |                              | 3,424  |                              |  | 2,680                        | 
|France                           |                              | 2,397  |                              |  | 2,170                        | 
|Germany                          |                              | 2,250  |                              |  | 1,970                        | 
|Rest of Europe                   |                              | 825    |                              |  | 1,036                        | 
|United
        States of America |                              | 6,529  |                              |  | 3,109                        | 
|Rest of World                    |                              | 1,902  |                              |  | 1,501                        | 
|                                 |                              |        |                              |  |                              | 
|                                 |                              | 17,327 |                              |  | 12,466                       | 
|                                 |                              |        |                              |  |                              | 

Turnover by origination

|                                 | 3 months ended June 30, 2000 |        | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|-------------------------------- | ---------------------------- | ------ | ---------------------------- |  | ---------------------------- | 
|                                 |                              |        |                              |  |                              | 
|                                 | (unaudited) £'000            |        | (unaudited) £'000            |  | £'000                        | 
|United Kingdom                   |                              | 5,351  |                              |  | 3,680                        | 
|France                           |                              | 2,525  |                              |  | 2,560                        | 
|Germany                          |                              | 2,162  |                              |  | 2,147                        | 
|United
        States of America |                              | 6,924  |                              |  | 3,569                        | 
|Rest of World                    |                              | 365    |                              |  | 510                          | 
|                                 |                              |        |                              |  |                              | 
|                                 |                              | 17,327 |                              |  | 12,466                       | 
|                                 |                              |        |                              |  |                              | 

Inter-segment sales (predominantly royalties)

|                                 | By origination               |      
|-------------------------------- | ---------------------------- | -----
|                                 | 3 months ended June 30, 2000 |      
|                                 |                              |      
|                                 | (unaudited) £'000            |      
|United Kingdom                   |                              | 639  
|United
        States of America |                              | 1,317
|Rest of World                    |                              | 229  
|                                 |                              |      
|                                 |                              | 2,185
|                                 |                              |      

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Income/(loss) on ordinary activities before tax

|                                 | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|-------------------------------- | ---------------------------- | ------- | ---------------------------- |  | ---------------------------- | -
|                                 |                              |         |                              |  |                              |  
|                                 | (unaudited) £'000            |         | (unaudited) £'000            |  | £'000                        |  
|Geographical segment             |                              |         |                              |  |                              |  
|United Kingdom                   |                              | (12,858 | )                            |  | (3,895                       | )
|France                           |                              | (495    | )                            |  | 192                          |  
|Germany                          |                              | 357     |                              |  | 15                           |  
|Spain (joint ventures)           |                              | (773    | )                            |  | (1,083                       | )
|United
        States of America |                              | (8,517  | )                            |  | (10,507                      | )
|Rest of World                    |                              | (48     | )                            |  | (87                          | )
|                                 |                              |         |                              |  |                              |  
|                                 |                              | (22,334 | )                            |  | (15,365                      | )
|                                 |                              |         |                              |  |                              |  

Turnover from the joint ventures originates
  from Spain and relates to computer software. In addition, turnover in the United
  Kingdom includes £180,000 (2001: £(51,000), 2000: £316,000)
  sales to the joint venture in Spain.

Net Assets/(liabilities)

|                                 | June 30, 2001     |         | June 30, 2002 | 
|-------------------------------- | ----------------- | ------- | ------------- | 
|                                 |                   |         |               | 
|                                 | (unaudited) £'000 |         | £'000         | 
|Geographical segment             |                   |         |               | 
|United Kingdom                   |                   | 73,114  |               | 
|France                           |                   | 779     |               | 
|Germany                          |                   | 35      |               | 
|Spain (joint ventures)           |                   | 7,601   |               | 
|United
        States of America |                   | (67,460 | )             | 
|Rest of World                    |                   | 481     |               | 
|                                 |                   |         |               | 
|                                 |                   | 14,550  |               | 
|                                 |                   |         |               | 

4 Directors emoluments

|                              | 3 months ended June 30, 2000 |     | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|----------------------------- | ---------------------------- | --- | ---------------------------- |  | ---------------------------- | 
|                              |                              |     |                              |  |                              | 
|                              | (unaudited) £'000            |     | (unaudited) £'000            |  | £'000                        | 
|Directors' emoluments         |                              |     |                              |  |                              | 
|Salary payments and royalties |                              | 374 |                              |  | 209                          | 
|Fees                          |                              | 20  |                              |  | 24                           | 
|Other benefits                |                              | 77  |                              |  | 61                           | 
|Company pension contributions |                              | 45  |                              |  | 25                           | 
|                              |                              |     |                              |  |                              | 
|                              |                              | 516 |                              |  | 319                          | 
|                              |                              |     |                              |  |                              | 

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|For the 3 months to June 30, 2002    | Salary and Fees |         | Benefits |  | Pension contributions |  | Total |        | 3 Months to June 30, 2001 | 
|------------------------------------ | --------------- | ------- | -------- |  | --------------------- |  | ----- | ------ | ------------------------- | 
|                                     |                 |         |          |  |                       |  |       |        |                           | 
|                                     |                 |         |          |  |                       |  |       |        |                           | 
|                                     | £               |         | £        |  | £                     |  | £     |        | £                         | 
|Current Serving Executives           |                 |         |          |  |                       |  |       |        |                           | 
|Mr Cruickshank                       |                 | 47,500  |          |  | 6,347                 |  |       | 5,700  |                           | 
|Mr Heath-Smith                       |                 | 62,500  |          |  | 27,070                |  |       | 7,500  |                           | 
|Mr Livingstone                       |                 | 60,000  |          |  | 8,693                 |  |       | 7,200  |                           | 
|Mr McGarvey                          |                 | 87,047  |          |  | 24,527                |  |       | 10,419 |                           | 
|Mr Protheroe                         |                 | 20,625  |          |  | 4,092                 |  |       | 2,000  |                           | 
|Non-Executive                        |                 |         |          |  |                       |  |       |        |                           | 
|Mr Adams                             |                 | 4,167   |          |  |                      |  |       |       |                           | 
|Mr van Kuffeler (from 18 April 2002) |                 | 20,513  |          |  |                      |  |       |       |                           | 
|Mr Steel                             |                 | 10,000  |          |  |                      |  |       |       |                           | 
|Mr Thomas                            |                 | 10,000  |          |  |                      |  |       |       |                           | 
|                                     |                 |         |          |  |                       |  |       |        |                           | 
|Total 2002                           |                 | 322,352 |          |  | 70,729                |  |       | 32,819 |                           | 
|                                     |                 |         |          |  |                       |  |       |        |                           | 
|Total 2001                           |                 | 232,468 |          |  | 61,385                |  |       | 25,050 |                           | 
|                                     |                 |         |          |  |                       |  |       |        |                           | 

Interests in shares

|               | June 30, 2001 |           | June 30, 2002 | 
|-------------- | ------------- | --------- | ------------- | 
|               |               |           |               | 
|Mr Livingstone |               | 2,681,915 |               | 
|Mr Heath-Smith |               | 728,534   |               | 
|Mr McGarvey    |               | 25,435    |               | 
|Mr Cruickshank |               |          |               | 

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Interests in share options

Details of options held by directors are set out below:

|                | March 31, 2002 |           | Granted in period |  | Lapsed in period |  | June 30, 2002 |   | Exercise price |  | Date from which exercisable |  | Expiry date |       
|--------------- | -------------- | --------- | ----------------- |  | ---------------- |  | ------------- | - | -------------- |  | --------------------------- |  | ----------- | ------
|                |                |           |                   |  |                  |  |               |   |                |  |                             |  |             |       
|Mr. Cruickshank |                | 88,236    |                   |  |                 |  |               |  |                |  | 88,236                      |  |             | 255.00
|                |                | 11,764    |                   |  |                 |  |               |  |                |  | 11,764                      |  |             | 255.00
|                |                |          |                   |  | **8,119          |  |               |  |                |  | 8,119                       |  |             | 117.00
|Mr. Heath-Smith |                | 201,077   |                   |  |                 |  |               |  |                |  | 201,077                     |  |             | 141.04
|                |                | 21,267    |                   |  |                 |  |               |  |                |  | 21,267                      |  |             | 141.04
|                |                |          |                   |  | **8,119          |  |               |  |                |  | 8,119                       |  |             | 117.00
|Mr. Livingstone |                | 245,763   |                   |  |                 |  |               |  |                |  | 245,763                     |  |             | 142.48
|                |                | 21,050    |                   |  |                 |  |               |  |                |  | 21,050                      |  |             | 142.48
|                |                | *314,485  |                   |  |                 |  |               |  |                |  | 314,485                     |  |             | 121.43
|Mr. McGarvey    |                | 139,543   |                   |  |                 |  |               |  |                |  | 139,543                     |  |             | 154.26
|                |                | 1,111,725 |                   |  |                 |  |               |  |                |  | 1,111,725                   |  |             | 105.24
|Mr. Protheroe   |                | 77,820    |                   |  |                 |  |               |  |                |  | 77,820                      |  |             | 142.48
|                |                | 55,586    |                   |  |                 |  |               |  |                |  | 55,586                      |  |             | 61.76 
|                |                | 111,172   |                   |  |                 |  |               |  |                |  | 111,172                     |  |             | 62.96 
|                |                |           |                   |  |                  |  |               |   |                |  |                             |  |             |       
|Total           |                | 2,399,488 |                   |  | 16,238           |  |               |  |                |  | 2,415,726                   |  |             |       
|                |                |           |                   |  |                  |  |               |   |                |  |                             |  |             |       

None of the non-executive Directors have any options in the Company

| | 
| | 

|*Effective holding shown.
        Mr. Livingstone holds an option to purchase shares in Eidos Interactive
        Limited which upon exercise are exchangeable for shares in the Company.                                                                                                            
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**Mr. Heath-Smith and
        Mr. Cruickshank are both contributing to a Sharesave Scheme which will
        become exercisable on April 1, 2005 with an estimated potential number
        of shares of 8,119 each at a price of 117.0p, such exercise periods to
        expire on October 1, 2005.

The closing market price of shares
  in Eidos plc was 128.0p on June 30, 2002 and 120.0p on August 31, 2002. The
  highest closing price during the 3 month period was 170.00p and the lowest was
  116.00p.

All options give the holders the
  rights to acquire shares on a one for one basis.

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5 Employee Information

The average weekly number of persons (including executive directors) employed by the Group and total costs during the  periods indicated below were:

|                                             | 3 months ended June 30, 2000 |     | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|-------------------------------------------- | ---------------------------- | --- | ---------------------------- |  | ---------------------------- | 
|                                             |                              |     |                              |  |                              | 
|                                             | (unaudited)                  |     | (unaudited)                  |  |                              | 
|By activity                                  |                              |     |                              |  |                              | 
|Corporate                                    |                              | 33  |                              |  | 28                           | 
|Computer entertainment software              |                              | 478 |                              |  | 499                          | 
|Video editing, post production and new media |                              | 63  |                              |  |                             | 
|                                             |                              |     |                              |  |                              | 
|                                             |                              | 574 |                              |  | 527                          | 
|                                             |                              |     |                              |  |                              | 

Computer entertainment software employees can be futher broken down as follows:

|                         | 3 months ended June 30, 2000 (unaudited) |    
|------------------------ | ---------------------------------------- | ---
|                         | UK                                       |    
|Sales and Marketing      |                                          | 60 
|Research and development |                                          | 122
|Administration           |                                          | 14 
|                         |                                          |    
|Total                    |                                          | 196
|                         |                                          |    

|                         | 3 months ended June 30, 2001 (unaudited) |    
|------------------------ | ---------------------------------------- | ---
|                         | UK                                       |    
|Sales and Marketing      |                                          | 50 
|Research and development |                                          | 130
|Administration           |                                          | 12 
|                         |                                          |    
|Total                    |                                          | 192
|                         |                                          |    

|                         | 3 months ended June 30, 2002 |    
|------------------------ | ---------------------------- | ---
|                         | UK                           |    
|Sales and Marketing      |                              | 48 
|Research and development |                              | 126
|Administration           |                              | 12 
|                         |                              |    
|Total                    |                              | 186
|                         |                              |    

|                            | 3 months ended June 30, 2000 |       | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|--------------------------- | ---------------------------- | ----- | ---------------------------- |  | ---------------------------- | 
|                            |                              |       |                              |  |                              | 
|                            | (unaudited)                  |       | (unaudited)                  |  |                              | 
|                            | £'000                        |       | £'000                        |  | £'000                        | 
|Staff costs                 |                              |       |                              |  |                              | 
|Wages and salaries          |                              | 6,129 |                              |  | 5,446                        | 
|Social security costs       |                              | 640   |                              |  | 590                          | 
|Pension costs (See Note 28) |                              | 216   |                              |  | 190                          | 
|                            |                              |       |                              |  |                              | 
|                            |                              | 6,985 |                              |  | 6,226                        | 
|                            |                              |       |                              |  |                              | 

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6 Net interest and similar charges

|                                          | 3 months ended June 30, 2000 |             | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|----------------------------------------- | ---------------------------- | ----------- | ---------------------------- |  | ---------------------------- | -
|                                          |                              |             |                              |  |                              |  
|                                          |                              | (unaudited) |                              |  | (unaudited)                  |  
|                                          | £'000                        |             | £'000                        |  | £'000                        |  
|Interest payable                          |                              |             |                              |  |                              |  
|Group                                     |                              |             |                              |  |                              |  
|Bank loans and overdrafts                 |                              | (207        | )                            |  | (368                         | )
|Finance leases                            |                              | (7          | )                            |  | (6                           | )
|Other interest                            |                              | (40         | )                            |  | (37                          | )
|                                          |                              |             |                              |  |                              |  
|                                          |                              | (254        | )                            |  | (411                         | )
|Share of joint ventures                   |                              | (12         | )                            |  | (5                           | )
|                                          |                              |             |                              |  |                              |  
|                                          |                              | (266        | )                            |  | (416                         | )
|                                          |                              |             |                              |  |                              |  
|Interest receivable                       |                              |             |                              |  |                              |  
|Group                                     |                              | 428         |                              |  | 118                          |  
|Share of joint ventures                   |                              | 4           |                              |  | 59                           |  
|                                          |                              |             |                              |  |                              |  
|                                          |                              | 432         |                              |  | 177                          |  
|                                          |                              |             |                              |  |                              |  
|Net
        interest receivable/(payable) |                              | 166         |                              |  | (239                         | )
|                                          |                              |             |                              |  |                              |  

7 Income/(Loss) on Ordinary Activities Before Tax

|                                                                | 3 months ended June 30, 2000 |       | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|--------------------------------------------------------------- | ---------------------------- | ----- | ---------------------------- |  | ---------------------------- | 
|                                                                |                              |       |                              |  |                              | 
|                                                                | (unaudited)                  |       | (unaudited)                  |  |                              | 
|                                                                | £'000                        |       | £'000                        |  | £'000                        | 
|This is stated after charging:                                  |                              |       |                              |  |                              | 
|Depreciation of tangible owned fixed assets                     |                              | 880   |                              |  | 429                          | 
|Depreciation of tangible fixed assets held under finance leases |                              | 22    |                              |  | 41                           | 
|Amortization of goodwill                                        |                              | 3,899 |                              |  | 4,030                        | 
|Auditors' remuneration for audit                                |                              | 67    |                              |  | 106                          | 
|Other fees paid to the auditors and their associates*           |                              | 221   |                              |  | 214                          | 
|Hire of plant and machinery  operating leases                  |                              | 182   |                              |  | 143                          | 
|Hire of other assets  operating leases                         |                              | 591   |                              |  | 731                          | 
|(Gain) or Loss on Exchange differences                          |                              | (457  | )                            |  | 133                          | 

| | 
| | 

|*Other fees paid to the auditors
        and their associates for the three months ended June 30, 2002, include
        tax compliance and advisory fees of £327,000, review of interim
        statements and quarterly US filings of £6,000.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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8 Tax on Income/(Loss) on Ordinary Activities

|                                           | 3 months ended June 30, 2000 |        | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|------------------------------------------ | ---------------------------- | ------ | ---------------------------- |  | ---------------------------- | -
|                                           |                              |        |                              |  |                              |  
|                                           | (unaudited)                  |        | (unaudited)                  |  |                              |  
|                                           | £'000                        |        | £'000                        |  | £'000                        |  
|UK
        Corporation tax charge/(credit) |                              | (5,566 | )                            |  |                             |  
|Overseas taxation                          |                              | (1,440 | )                            |  | 86                           |  
|                                           |                              |        |                              |  |                              |  
|                                           |                              | (7,006 | )                            |  | 86                           |  
|Adjustment in respect of prior years:      |                              |        |                              |  |                              |  
|Overseas
        taxation                  |                              |       |                              |  | (193                         | )
|UK
        taxation                        |                              |       |                              |  | 107                          |  
|                                           |                              |        |                              |  |                              |  
|                                           |                              | (7,006 | )                            |  |                             |  
|                                           |                              |        |                              |  |                              |  
|Of which:                                  |                              |        |                              |  |                              |  
|Remaining Group taxation                   |                              | (7,104 | )                            |  | (42                          | )
|Joint ventures' taxation                   |                              | 98     |                              |  | 42                           |  
|                                           |                              |        |                              |  |                              |  
|                                           |                              | (7,006 | )                            |  |                             |  
|                                           |                              |        |                              |  |                              |  

9 Tax on Income/(Loss) on Ordinary Activities reconciliation

Total income tax expense differs from the
  amounts computed by applying the UK statutory income tax rate of 30% (2001:
  30%, 2000: 30%) to income/(loss) before taxes, as a result of the following:

|                                                                           | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|-------------------------------------------------------------------------- | ---------------------------- | ------- | ---------------------------- |  | ---------------------------- | -
|                                                                           |                              |         |                              |  |                              |  
|                                                                           | (unaudited)                  |         | (unaudited)                  |  |                              |  
|                                                                           | £'000                        |         | £'000                        |  | £'000                        |  
|Loss for the quarter                                                       |                              | (22,344 | )                            |  | (15,365                      | )
|                                                                           |                              |         |                              |  |                              |  
|UK
        statutory rate                                                  |                              | (6,703  | )                            |  | (4,610                       | )
|Difference
        between overseas and UK tax rate                        |                              | (303    | )                            |  | (751                         | )
|Permanent disallowables                                                    |                              | 1,170   |                              |  | 1,209                        |  
|Deferred tax asset not recognized, net                                     |                              |        |                              |  |                             |  
|Utilization of brought forward losses and losses previously not recognised |                              |        |                              |  |                             |  
|Current year losses unable to be used in current period                    |                              |        |                              |  | 4,152                        |  
|Other differences                                                          |                              | (1,170  | )                            |  |                             |  
|                                                                           |                              |         |                              |  |                              |  
|Provision/(credit)                                                         |                              | (7,006  | )                            |  |                             |  
|                                                                           |                              |         |                              |  |                              |  

There is no current year tax effect in the profit and loss account relating to the exceptional items in either the current or  prior year.

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10 Earnings/(loss) Per Share

The calculations of earnings per share are based on the following information. All numbers (including the comparatives)  reflect the five for one share split, which took place on January 25, 2000 and the 1 for 3 Rights Issue, which took place  during July 2001.

Weighted average number of shares:

|                           | 3 months ended June 30, 2000 |             | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 | 
|-------------------------- | ---------------------------- | ----------- | ---------------------------- |  | ---------------------------- | 
|                           |                              |             |                              |  |                              | 
|                           | (unaudited)                  |             | (unaudited)                  |  |                              | 
|Basic earnings per share   |                              | 115,106,060 |                              |  | 115,570,183                  | 
|Exercise of share options  |                              | 3,417,749   |                              |  | 2,580,748                    | 
|                           |                              |             |                              |  |                              | 
|Diluted earnings per share |                              | 118,523,809 |                              |  | 118,150,931                  | 
|                           |                              |             |                              |  |                              | 
|                           |                              |             |                              |  |                              | 

No dividends were paid during any of the last three fiscal years.

|                      | Basic                        |         | Diluted                      | 
|--------------------- | ---------------------------- | ------- | ---------------------------- | 
|                      | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 | 
|                      |                              |         |                              | 
|                      | (unaudited)                  |         | (unaudited)                  | 
|                      | £'000                        |         | £'000                        | 
|Net loss for the year |                              | (15,328 | )                            | 
|                      |                              |         |                              | 
|!                    
|Loss per share        |                              | (13.3p  | )                            | 
|                      |                              |         |                              | 

11 Intangible fixed Assets

|                            | Joint Ventures |        | Others |  | Total  | 
|--------------------------- | -------------- | ------ | ------ |  | ------ | 
|                            |                |        |        |  |        | 
|                            | £'000          |        | £'000  |  | £'000  | 
|Goodwill                    |                |        |        |  |        | 
|Cost                        |                |        |        |  |        | 
|At April 1, 2002            |                | 15,745 |        |  | 34,774 | 
|                            |                |        |        |  |        | 
|At June 30, 2002            |                | 15,745 |        |  | 34,774 | 
|                            |                |        |        |  |        | 
|Amortization                |                |        |        |  |        | 
|At April 1, 2002            |                | 13,855 |        |  | 34,112 | 
|Exchange adjustments        |                | 4      |        |  | 41     | 
|Amortization for the period |                | 1,415  |        |  | 71     | 
|                            |                |        |        |  |        | 
|At June 30, 2002            |                | 15,274 |        |  | 34,224 | 
|                            |                |        |        |  |        | 
|Net book value              |                |        |        |  |        | 
|At June 30, 2002            |                | 471    |        |  | 550    | 
|                            |                |        |        |  |        | 
|At March 31, 2002           |                | 1,890  |        |  | 662    | 
|                            |                |        |        |  |        | 

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Goodwill amortization on Proein SL, Pyro Studios SL (acquired in 2000), Crystal Dynamics, Inc. (acquired in 1999) and Ion  Storm (acquired 2002) has been calculated based on the three year estimated useful economic life as detailed in note 2.

12 Tangible Fixed Assets

|                                   | Leasehold improvements |       | Fixtures and fittings |  | Computer equipment |   | Motor vehicles |       | Total | 
|---------------------------------- | ---------------------- | ----- | --------------------- |  | ------------------ | - | -------------- | ----- | ----- | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|                                   | £'000                  |       | £'000                 |  | £'000              |   | £'000          |       | £'000 | 
|Cost                               |                        |       |                       |  |                    |   |                |       |       | 
|At April 1, 2002                   |                        | 2,895 |                       |  | 2,620              |   |                | 9,645 |       | 
|Exchange Adjustment                |                        | (64   | )                     |  | (52                | ) |                | (153  | )     | 
|Additions                          |                        | 182   |                       |  | 6                  |   |                | 432   |       | 
|Disposals                          |                        |      |                       |  | (1                 | ) |                | (528  | )     | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|At June 30, 2002                   |                        | 3,013 |                       |  | 2,573              |   |                | 9,396 |       | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|Depreciation                       |                        |       |                       |  |                    |   |                |       |       | 
|At April 1, 2002                   |                        | 965   |                       |  | 2,114              |   |                | 6,778 |       | 
|Exchange Adjustments               |                        | (17   | )                     |  | (44                | ) |                | (126  | )     | 
|Charge for the period              |                        | 65    |                       |  | 60                 |   |                | 432   |       | 
|Eliminated in respect of disposals |                        |      |                       |  | (1                 | ) |                | (456  | )     | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|At June 30, 2002                   |                        | 1,013 |                       |  | 2,129              |   |                | 6,628 |       | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|Net book value                     |                        |       |                       |  |                    |   |                |       |       | 
|At June 30, 2002                   |                        | 2,000 |                       |  | 444                |   |                | 2,768 |       | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 
|Net book value                     |                        |       |                       |  |                    |   |                |       |       | 
|At March 31, 2002                  |                        | 1,930 |                       |  | 506                |   |                | 2,867 |       | 
|                                   |                        |       |                       |  |                    |   |                |       |       | 

The net book value of tangible fixed assets includes an amount of £276,000 (June 2001: £350,000) in respect of assets held  under finance leases.

13 Investments

|                                                      | Joint
      ventures |       | Associated
      undertakings |  | Total | 
|----------------------------------------------------- | -------------------- | ----- | ----------------------------- |  | ----- | 
|                                                      |                      |       |                               |  |       | 
|                                                      | £'000                |       | £'000                         |  | £'000 | 
|At
        April 1, 2002                              |                      | 2,886 |                               |  | 1     | 
|Share
        of retained profits less dividends paid |                      | 235   |                               |  |      | 
|Translation
        adjustment                        |                      | 197   |                               |  |      | 
|                                                      |                      |       |                               |  |       | 
|At
        June 30, 2002                              |                      | 3,318 |                               |  | 1     | 
|                                                      |                      |       |                               |  |       | 

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Interests in Group undertakings

The directors consider that to give full particulars of all interests in Group undertakings would lead to a statement of  excessive length. The following information relates to those subsidiary undertakings, joint ventures and associated  undertakings whose results or financial position, in the opinion of the directors, principally affected the financial  statements of the Group:

|Subsidiary
        undertakings              |  | Country
      of
      incorporation |                   | Nature
      of business |  | Description
      of
      shares held             |  | Other
      Group
      companies |                                                                  | Company | 
|-------------------------------------------- |  | ------------------------------------ | ----------------- | ------------------------ |  | -------------------------------------------------- |  | --------------------------------- | ---------------------------------------------------------------- | ------- | 
|                                             |  |                                      |                   |                          |  |                                                    |  |                                   |                                                                  |         | 
|Eidos
        Interactive Limited            |  |                                      | England and Wales |                          |  | Developer and Publisher
      of computer software |  |                                   | Ordinary £1
      shares each and 'A' ordinary £0.05 shares each |         | 
|Eidos
        Interactive Inc                |  |                                      | U.S.A             |                          |  | Developer and Publisher of
      computer software |  |                                   | Common stock $0.001 par value                                    |         | 
|Crystal
        Dynamics Inc                 |  |                                      | U.S.A             |                          |  | Developer of computer software                     |  |                                   | Common stock no par value                                        |         | 
|Core
        Design Limited                  |  |                                      | England and Wales |                          |  | Developer of computer software                     |  |                                   | Ordinary £1 shares                                               |         | 
|Eidos
        Interactive France SARL        |  |                                      | France            |                          |  | Publisher of computer software                     |  |                                   | Ordinary Shares of 7,623 Euros                                   |         | 
|Eidos
        Interactive (Deutschland) GmbH |  |                                      | Germany           |                          |  | Publisher of computer software                     |  |                                   | Euros 25,565                                                     |         | 
|Eidos
        Interactive KK                 |  |                                      | Japan             |                          |  | Publisher of computer software                     |  |                                   | 100 million Yen                                                  |         | 
|Eidos
        Interactive Pte Limited        |  |                                      | Singapore         |                          |  | Publisher of computer software                     |  |                                   | Ordinary S$1 shares                                              |         | 
|Ion
        Storm LLP                        |  |                                      | U.S.A.            |                          |  | Developer of computer software                     |  |                                   | Partnership units                                                |         | 
|Joint
        ventures                       |  |                                      |                   |                          |  |                                                    |  |                                   |                                                                  |         | 
|                                             |  |                                      |                   |                          |  |                                                    |  |                                   |                                                                  |         | 
|Proein
        SL                            |  |                                      | Spain             |                          |  | Publisher of computer software                     |  |                                   | 5000 Common shares of 6 Euros
      each                         |         | 
|Pyro
        Studios SL                      |  |                                      | Spain             |                          |  | Developer of computer software                     |  |                                   | 500 Common shares of 6 Euros
      each                          |         | 

|Associated
        undertakings    |  | Country
      of
      incorporation |                       | Nature
      of business |  | Description
      of
      shares held |  | Other
      Group
      companies |                       | Company | 
|---------------------------------- |  | ------------------------------------ | --------------------- | ------------------------ |  | -------------------------------------- |  | --------------------------------- | --------------------- | ------- | 
|                                   |  |                                      |                       |                          |  |                                        |  |                                   |                       |         | 
|Sports
        Interactive Limited |  |                                      | England
      & Wales |                          |  | Developer
      of computer software   |  |                                   | Ordinary
      shares |         | 

All the above companies operated principally in their country of incorporation.

---

|(1) | Effective holding shown.
|--- | ------------------------

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14 Stocks

|                                      | June
      30, 2001 |       | June
      30, 2002 | 
|------------------------------------- | ------------------- | ----- | ------------------- | 
|                                      |                     |       |                     | 
|                                      | (unaudited)         |       |                     | 
|                                      | £'000               |       | £'000               | 
|Raw
        materials and consumables |                     | 461   |                     | 
|Finished
        goods                |                     | 2,386 |                     | 
|                                      |                     |       |                     | 
|Stocks                                |                     | 2,847 |                     | 
|                                      |                     |       |                     | 

15 Debtors

|                               | June 30, 2001 |        | June 30, 2002 | 
|------------------------------ | ------------- | ------ | ------------- | 
|                               |               |        |               | 
|                               | (unaudited)   |        |               | 
|                               | £'000         |        | £'000         | 
|Trade debtors                  |               | 6,522  |               | 
|Prepaid licenses               |               | 3,587  |               | 
|Deferred tax asset (note 19)   |               | 1,428  |               | 
|Corporation tax recoverable    |               | 3,931  |               | 
|Other debtors                  |               | 4,573  |               | 
|Prepayments and accrued income |               | 3,155  |               | 
|                               |               |        |               | 
|                               |               | 23,196 |               | 
|                               |               |        |               | 

Included within prepaid licenses is £1,449,000 in respect of periods that extend beyond one year (2001: £2,523,000).

16 Creditors: Amounts Falling Due Within One Year

|                                      | June 30, 2001 |        | June
      30, 2002 | 
|------------------------------------- | ------------- | ------ | ------------------- | 
|                                      |               |        |                     | 
|                                      | (unaudited)   |        |                     | 
|                                      | £'000         |        | £'000               | 
|Bank loans and overdrafts             |               | 19,060 |                     | 
|Obligations under finance leases      |               | 85     |                     | 
|Trade creditors                       |               | 7,061  |                     | 
|Royalty creditors                     |               | 2,389  |                     | 
|Other taxes and social security costs |               | 572    |                     | 
|Other creditors                       |               | 768    |                     | 
|Accruals                              |               | 4,797  |                     | 
|Corporation tax                       |               | 1,716  |                     | 
|                                      |               |        |                     | 
|                                      |               | 36,448 |                     | 
|                                      |               |        |                     | 

During the quarter ended June 30, 2002, the Group received £11.4 million that comprised a tax rebate of £10.5 million plus  accrued interest of £0.9 million. The monies were received following the submission of a claim to the Inland Revenue,  however this claim remains subject to agreement by the Inland Revenue. Until such time as the Inland Revenue has  concluded its work in this respect, the Group will continue to carry this sum within creditors: amounts falling due within  one year.

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17 Creditors: Amounts Falling Due After More Than One Year

|                                       | June
      30, 2001 |       | June
      30, 2002 | 
|-------------------------------------- | ------------------- | ----- | ------------------- | 
|                                       |                     |       |                     | 
|                                       | (unaudited)         |       |                     | 
|                                       | £'000               |       | £'000               | 
|Accruals and deferred income           |                     | 2,000 |                     | 
|Obligations under finance leases:      |                     |       |                     | 
|Due
        between one and two years  |                     | 100   |                     | 
|Due
        between two and five years |                     | 272   |                     | 
|                                       |                     |       |                     | 
|                                       |                     | 2,372 |                     | 
|                                       |                     |       |                     | 

18 Provisions for liabilities and charges

|                                                 | £'000 |      
|------------------------------------------------ | ----- | -----
|As at April 1, 2002                              |       | 1,524
|Release of provision for future rent commitments |       | (106 
|                                                 |       |      
|As at June 30, 2002                              |       | 1,418
|                                                 |       |      

The provision represents the discounted value of future lease payments in respect of a vacant property which is leased  until 2008 by a subsidiary.

19 Deferred Taxation

|                                                        | June
      30, 2001 |        | June
      30, 2002 | 
|------------------------------------------------------- | ------------------- | ------ | ------------------- | 
|                                                        |                     |        |                     | 
|                                                        | (unaudited)         |        |                     | 
|                                                        | £'000               |        | £'000               | 
|Unrecognized                                            |                     |        |                     | 
|Difference between tax allowances and book depreciation |                     | 428    |                     | 
|Other timing differences                                |                     | 9,730  |                     | 
|Tax effect of losses carried forward                    |                     | 25,499 |                     | 
|                                                        |                     |        |                     | 
|Unrecognized deferred tax asset                         |                     | 35,657 |                     | 
|                                                        |                     |        |                     | 

|                                     | June
      30, 2001 |       | June
      30, 2002 | 
|------------------------------------ | ------------------- | ----- | ------------------- | 
|                                     |                     |       |                     | 
|                                     | (unaudited)         |       |                     | 
|                                     | £'000               |       | £'000               | 
|Recognized                           |                     |       |                     | 
|Tax effect of losses carried forward |                     | 1,428 |                     | 
|                                     |                     |       |                     | 

The tax effect of losses carried forward includes £16 million acquired tax losses, which arose during the year March 31,  1999 on the acquisition of Crystal Dynamics, Inc. which are available over a number of years.

The other timing differences arise in the USA where they relate mainly to disallowed interest expenses and movements  on provisions for future returns.

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20 Called up Share Capital

|                                                       | June
      30, 2001 |       | June
      30, 2002 | 
|------------------------------------------------------ | ------------------- | ----- | ------------------- | 
|                                                       |                     |       |                     | 
|                                                       | £'000               |       | £'000               | 
|Authorized                                             |                     |       |                     | 
|June 30, 2001 : 142,500,000 Ordinary Shares of 2p each |                     | 2,850 |                     | 
|June 30, 2002 : 192,500,000 Ordinary Shares of 2p each |                     |      |                     | 
|                                                       |                     |       |                     | 
|Allotted, called up and fully paid                     |                     |       |                     | 
|June 30, 2001 : 103,988,348 Ordinary Shares of 2p each |                     | 2,080 |                     | 
|June 30, 2002 : 139,753,355 Ordinary Shares of 2p each |                     |      |                     | 
|                                                       |                     |       |                     | 

During the period, 14,939 ordinary 2p shares
  were allotted following the exercise of Eidos options and 85,901 were allotted
  in conjunction with the US stock purchase plan. The total consideration received
  on all share allotments was £124,725 cash (total nominal value £2,069)

21 Stock Options

The Eidos stock option schemes provide for the granting of options to purchase shares to directors and employees of the  Company and its subsidiaries up to a maximum of 10% of the issued share capital of the Company immediately prior to  the day any options are granted. The option price may not be less than the higher of the nominal value of one Eidos share  or the fair market value of an Eidos share on the date the option is granted.

In general the periods of the Approved and
  Unapproved Scheme options are ten years and seven years respectively. In addition,
  certain US employees have been granted options under the US Stock Option Plan
  and these have a seven year term.

Options are generally exercisable three years after being granted and are on a one share for one option basis with no  specific performance criteria.

During 1999 the Company launched an Inland
  Revenue approved SAYE Share Scheme ("Sharesave Scheme") for all UK
  employees. Similar schemes were rolled out to employees in the French, German,
  Japanese and Singapore offices during 2000.

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The following options for 2p Ordinary Shares were open at June 30, 2002:

|                                            | Number of shares over which options granted |           | Option exercise price |  | Option exercise period | 
|------------------------------------------- | ------------------------------------------- | --------- | --------------------- |  | ---------------------- | 
|                                            |                                             |           |                       |  |                        | 
|UK
        Inland Revenue Approved Scheme   |                                             | 55,586    |                       |  | 61.76p                 | 
|                                            |                                             | 111,172   |                       |  | 62.96p                 | 
|                                            |                                             | 21,267    |                       |  | 141.04p                | 
|                                            |                                             | 21,050    |                       |  | 142.48p                | 
|                                            |                                             | 168,379   |                       |  | 154.26p                | 
|                                            |                                             | 159,033   |                       |  | 254.00p                | 
|                                            |                                             | 11,764    |                       |  | 255.00p                | 
|                                            |                                             | 22,232    |                       |  | 298.63p                | 
|                                            |                                             | 175,832   |                       |  | 298.63p                | 
|                                            |                                             | 9,110     |                       |  | 329.21p                | 
|                                            |                                             |           |                       |  |                        | 
|UK
        Inland Revenue Unapproved Scheme |                                             | 1,111,725 |                       |  | 105.24p                | 
|                                            |                                             | 257,930   |                       |  | 140.92p                | 
|                                            |                                             | 201,077   |                       |  | 141.04p                | 
|                                            |                                             | 323,583   |                       |  | 142.48p                | 
|                                            |                                             | 235,232   |                       |  | 154.26p                | 
|                                            |                                             | 139,543   |                       |  | 154.26p                | 
|                                            |                                             | 630,137   |                       |  | 298.63p                | 
|                                            |                                             | 129,855   |                       |  | 329.21p                | 
|                                            |                                             | 861,467   |                       |  | 254.00p                | 
|                                            |                                             | 88,236    |                       |  | 255.00p                | 
|                                            |                                             |           |                       |  |                        | 
|US
        Stock Option Plan                |                                             | 138,454   |                       |  | 254.70c                | 
|                                            |                                             | 452,500   |                       |  | 361.00c                | 
|                                            |                                             | 239,013   |                       |  | 472.76c                | 
|                                            |                                             | 111,172   |                       |  | 525.80c                | 
|                                            |                                             |           |                       |  |                        | 
|                                            |                                             | 5,675,349 |                       |  |                        | 
|                                            |                                             |           |                       |  |                        | 

|                                       | Number  |         | Exercise
      price |         | Maturity
      date     | 
|-------------------------------------- | ------- | ------- | -------------------- | ------- | ----------------------- | 
|                                       |         |         |                      |         |                         | 
|International
        Sharesave Scheme |         | 21,527  |                      |         | 125.93p                 | 
|                                       |         | 12,480  |                      |         | 263.55p                 | 
|                                       |         | 682     |                      |         | 842.29p                 | 
|                                       |         | 4,707   |                      |         | 403.00 euro
      cents | 
|                                       |         | 57,359  |                      |         | 205.98p                 | 
|                                       |         | 72,394  |                      |         | 160.11p                 | 
|                                       |         | 8,775   |                      |         | 403.00 Euro
      cents | 
|                                       |         | 15,803  |                      |         | 198.00p                 | 
|                                       |         | 4,837   |                      |         | 149.31p                 | 
|                                       |         | 7,879   |                      |         | 192.00 Euro
      cents | 
|                                       |         | 29,670  |                      |         | 213.50 Euro
      cents | 
|                                       |         | 234,833 |                      |         | 117.00p                 | 
|                                       | *65,530 |         |                      | 174.00c |                         | 
|                                       |         |         |                      |         |                         | 
|                                       |         | 536,476 |                      |         |                         | 
|                                       |         |         |                      |         |                         | 

These options include those granted
  to directors of the Company, which are also detailed in Note 4.

---

|* | This is a US Stock Purchase Plan.
        The actual exercise price and number of purchase rights cannot be determined
        until maturity (ie 6 months following the date of grant). 60,530 is a
        provisional number of shares subject to purchase rights based on the market
        based on the market price of an Eidos Ordinary share (less an applicable
        15% discount) as at the date of grant.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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22 Share Premium Account, Reserves and Reconciliation of Movements in Shareholders' Funds

The balances as at each balance sheet date and the movements in the periods are set out in the Consolidated Statements  of Changes in Shareholders' Equity.

23 Reconciliation of operating profit/(loss) to net cash outflow/(inflow) from operating activities

|                                                    | 3 months ended
      June 30, 2000 |         | 3 months ended
      June 30, 2001 |  | 3 months ended
      June 30, 2002 |  
|--------------------------------------------------- | ---------------------------------- | ------- | ---------------------------------- |  | ---------------------------------- | -
|                                                    |                                    |         |                                    |  |                                    |  
|                                                    | (unaudited) £'000                  |         | (unaudited) £'000                  |  | £'000                              |  
|                                                    |                                    |         |                                    |  |                                    |  
|Operating income/(loss)                             |                                    | (21,537 | )                                  |  | (13,989                            | )
|Depreciation of tangible fixed assets               |                                    | 902     |                                    |  | 470                                |  
|Amortization and write off of goodwill              |                                    | 2,647   |                                    |  | 2,827                              |  
|(Increase)/decrease in stock                        |                                    | 33      |                                    |  | 386                                |  
|(Increase)/decrease in debtors                      |                                    | 48,622  |                                    |  | 24,323                             |  
|Increase/(decrease) in creditors                    |                                    | (26,582 | )                                  |  | (22,465                            | )
|                                                    |                                    |         |                                    |  |                                    |  
|Net cash inflow/(outflow) from operating activities |                                    | 4,085   |                                    |  | (8,448                             | )
|                                                    |                                    |         |                                    |  |                                    |  
|                                                    |                                    |         |                                    |  |                                    |  

24 Analysis of Net Funds

|                                         | March
      31, 2001 |         | Change
      in quarter |  | June 30, 2001     |   |  |         |   | March
      31, 2002 |  | Change
      in quarter |  | June 30, 2002 |  
|---------------------------------------- | -------------------- | ------- | ----------------------- |  | ----------------- | - |  | ------- | - | -------------------- |  | ----------------------- |  | ------------- | -
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|                                         | (unaudited) £'000    |         | (unaudited) £'000       |  | (unaudited) £'000 |   |  |         |   | £'000                |  | £'000                   |  | £'000         |  
|Net cash:                                |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|Cash at bank and in hand                 |                      | 28,355  |                         |  | (19,717           | ) |  | 8,638   |   |                      |  |                         |  | 16,603        |  
|Bank overdrafts                          |                      | (368    | )                       |  | 368               |   |  |        |   |                      |  |                         |  |              |  
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|Total cash and demand debt               |                      | 27,987  |                         |  | (19,349           | ) |  | 8,638   |   |                      |  |                         |  | 16,603        |  
|Loans repayable within one year          |                      | (18,500 | )                       |  | (500              | ) |  | (19,000 | ) |                      |  |                         |  | (66           | )
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|                                         |                      | 9,487   |                         |  | (19,849           | ) |  | (10,362 | ) |                      |  |                         |  | 16,537        |  
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|Short-term deposits and liquid resources |                      |        |                         |  |                  |   |  |        |   |                      |  |                         |  | 34,030        |  
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|                                         |                      | 9,487   |                         |  | (19,849           | ) |  | (10,362 | ) |                      |  |                         |  | 50,567        |  
|Finance leases                           |                      | (385    | )                       |  | (72               | ) |  | (457    | ) |                      |  |                         |  | (256          | )
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  
|Net funds                                |                      | 9,102   |                         |  | (19,921           | ) |  | (10,819 | ) |                      |  |                         |  | 50,311        |  
|                                         |                      |         |                         |  |                   |   |  |         |   |                      |  |                         |  |               |  

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Reconciliation of Net Cash Flow to Movement in Net Funds

|                                              | 3 months ended
      June 30, 2000 |        | 3 months ended
      June 30, 2001 |  | 3 months ended
      June 30, 2002 |  
|--------------------------------------------- | ---------------------------------- | ------ | ---------------------------------- |  | ---------------------------------- | -
|                                              |                                    |        |                                    |  |                                    |  
|                                              | (unaudited) £'000                  |        | (unaudited) £'000                  |  | £'000                              |  
|                                              |                                    |        |                                    |  |                                    |  
|Increase/(decrease) in cash in period         |                                    | (8,294 | )                                  |  | (19,532                            | )
|Cash outflow from decrease in lease financing |                                    | 98     |                                    |  | 58                                 |  
|Increase in term deposits                     |                                    |       |                                    |  |                                   |  
|                                              |                                    |        |                                    |  |                                    |  
|Change in net funds resulting from cash flows |                                    | (8,196 | )                                  |  | (19,474                            | )
|New finance leases                            |                                    | (12    | )                                  |  | (132                               | )
|Exchange rate movements                       |                                    | 75     |                                    |  | (315                               | )
|                                              |                                    |        |                                    |  |                                    |  
|Movement in net funds in period               |                                    | (8,133 | )                                  |  | (19,921                            | )
|Net funds at beginning of period              |                                    | 22,632 |                                    |  | 9,102                              |  
|                                              |                                    |        |                                    |  |                                    |  
|Net funds at end of period                    |                                    | 14,499 |                                    |  | (10,819                            | )
|                                              |                                    |        |                                    |  |                                    |  

25 Contingent Liabilities

From time to time, the Group is subject to claims and litigation and at the period end there were a small number of claims  outstanding against the Group. Full provision has been made in the Financial Statements where it is considered that the  Group may have a liability. A total of £100,000 has been provided in respect of such claims at June 30, 2002.

In the opinion of the Directors the remaining claims outstanding are not expected to give rise to any significant liability for  the Group.

26 Commitments under Operating Leases

The Group had the following annual commitments under non-cancelable operating leases, analyzed into leases that  expire as follows:

|                     | Land and buildings |       | Plant, machinery, motor vehicles and computer equipment | 
|-------------------- | ------------------ | ----- | ------------------------------------------------------- | 
|                     | June 30, 2001      |       | June 30, 2002                                           | 
|                     |                    |       |                                                         | 
|                     | (unaudited) £'000  |       | £'000                                                   | 
|Within one year      |                    | 288   |                                                         | 
|In two to five years |                    | 1,098 |                                                         | 
|After five years     |                    | 500   |                                                         | 
|                     |                    |       |                                                         | 
|                     |                    | 1,886 |                                                         | 
|                     |                    |       |                                                         | 

27 Capital Commitments

As at June 30, 2002 the Group had contracted to make payments, conditional upon the completion of development  milestones, totalling £10.4 million to various licensors and developers involved in providing games software for the  Group's use. £8.8 million is payable within one year and the remaining £1.6 million is due within one to two years. All  development contracts can be terminated by Eidos at any time without penalties, if the development milestones are not  achieved.

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28 Pension Commitments

Effective from January 1, 1997 the Group has operated a defined contribution private pension plan. The assets of the plan  are held separately from those of the Group in an independently administered fund. Defined contributions are paid to the  plan and charged to income so as to spread the cost of pensions over the employees' and directors' working lives within  the Group. Contributions paid by the Group during the current quarter were £94,000 (2001: £95,000, 2000: £107,000). At  the quarter end no contributions were outstanding.

In addition, one director is a member of the Core Design Pension Scheme. This is also a defined contribution scheme.  Contributions paid by the Group during the current quarter were £7,500 (2001: £7,500, 2000: £6,975). No contributions  were outstanding at the period end.

All significant overseas pension arrangements are also of a defined contribution nature. Contributions for the year were  £112,000 (2001: £88,000, 2000: £102,000). No contributions were outstanding at the period end.

In October 2001, the UK Government made it
  compulsory for most companies in the UK employing over 5 members of staff to
  give their staff access to Stakeholder pensions. Eidos plc has reviewed its
  Group Personal Pension Plan and implemented a number of minor changes (such
  as lowering the entrance age) to ensure that the Plan is Stakeholder Exempt
  and no further action was needed to comply.

29 Related Party disclosures

In relation to material transactions, the Group has not identified any parties who are able to negotiate more favorable  terms than would have been available to any other independent party on an arms length basis.

Quarter to June 30, 2002

|a) | During the quarter the Group paid £1.3 million (2001: £3.2 million) to its associated companies as royalties and advances on games being developed for the Group.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                  

|b) | In July 1999 Eidos acquired a 75% stake in Proein SL. In the quarter to June 30, 2002 Eidos sold games to Proein SL totalling £179,000 (2001: £112,000). These games were all sold on an arm's length basis. In addition in the same period Eidos paid £0.5 million (2001: £0.3 million) to Pyro Studios SL (in which Eidos acquired a 25% stake) as royalties and for the development of games for Eidos. At June 30, 2002 Eidos was owed £24,000 by Proein SL, (2001: Eidos owed Proein SL £119,000) and was owed by Pyro Studios SL £112,000 (2001: £69,000).
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|c) | In June 2001 Eidos took its stake in Ion Storm to 89%. In the quarter to June 30, 2002 Eidos paid £1.4 million to Ion Storm for the development of games for Eidos. As at June 30, 2002, Eidos was owed £4,623,000 by Ion Storm.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Group has taken advantage of the exemption in Financial Reporting Standard No 8 in respect of subsidiaries that are  greater than 90% subsidiaries.

All inter-company transactions are required to be on an arm's length basis.

30 Derivatives and other Financial Instruments

The Group is exposed to certain market risks
  arising from transactions in the normal course of business and financial instruments
  used to finance the Group's operations. The main risks arising are foreign currency
  risk and interest rate risk. The Group's treasury policy is to manage financial
  risks that arise in relation to underlying business needs.

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Certain financial assets such as investments
  in subsidiary, joint and associated undertakings are excluded from the scope
  of these disclosures.

As permitted by FRS13, short-term debtors and creditors have also been excluded from the disclosure, other than the  currency disclosures.

Interest rate risk profile of financial liabilities

The interest rate and currency profile of the Group's financial assets and liabilities at June 30, 2002 was as follows:

|                                          | Sterling |        | US Dollar |  | Euro  |  | Singapore Dollar |       | Japanese Yen |  | Total | 
|----------------------------------------- | -------- | ------ | --------- |  | ----- |  | ---------------- | ----- | ------------ |  | ----- | 
|                                          |          |        |           |  |       |  |                  |       |              |  |       | 
|                                          | £'000    |        | £'000     |  | £'000 |  | £'000            |       | £'000        |  | £'000 | 
|Cash and liquid resources  floating rate |          | 53,646 |           |  | 495   |  |                  | 4,509 |              |  | 169   | 
|                                          |          |        |           |  |       |  |                  |       |              |  |       | 
|                                          |          | 53,646 |           |  | 495   |  |                  | 4,509 |              |  | 169   | 
|                                          |          |        |           |  |       |  |                  |       |              |  |       | 

The corresponding interest rate and currency profile of the Group's financial assets and liabilities at June 30, 2001 was as  follows:

|                                          | Sterling    |         | US Dollar   |  | Euro        |  | Singapore Dollar |       | Japanese Yen |  | Total       | 
|----------------------------------------- | ----------- | ------- | ----------- |  | ----------- |  | ---------------- | ----- | ------------ |  | ----------- | 
|                                          |             |         |             |  |             |  |                  |       |              |  |             | 
|                                          | (unaudited) |         | (unaudited) |  | (unaudited) |  | (unaudited)      |       | (unaudited)  |  | (unaudited) | 
|                                          | £'000       |         | £'000       |  | £'000       |  | £'000            |       | £'000        |  | £'000       | 
|Cash and liquid resources  floating rate |             | 3,802   |             |  | 2,480       |  |                  | 2,050 |              |  | 116         | 
|Floating rate debt                        |             | (19,000 | )           |  |            |  |                  |      |              |  |            | 
|                                          |             |         |             |  |             |  |                  |       |              |  |             | 
|                                          |             | (15,198 | )           |  | 2,480       |  |                  | 2,050 |              |  | 116         | 
|                                          |             |         |             |  |             |  |                  |       |              |  |             | 

Cash deposits and liquid resources comprise of cash deposits placed on money markets for periods of up to six months.  Floating rate debt comprises of bank borrowings bearing interest at rates based on inter-bank interest rates.

Currency exposures

The Group's objective in managing the currency exposures is to minimize gains and losses arising in its overseas  subsidiaries. The Company provides working capital to its overseas subsidiaries in their functional currencies and hedges  its exposure in accordance with Company policy.

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The table below shows the Group's currency exposures, i.e. those transactional exposures that give rise to the net  currency gains and losses recognized in the profit and loss account. These exposures were as follows:

|                                       | Net foreign currency monetary assets/(liabilities) |       
|-------------------------------------- | -------------------------------------------------- | ------
|                                       | US
      dollar                                    |       
|                                       |                                                    |       
|                                       | £'000                                              |       
|Functional currency of group operation |                                                    |       
|Sterling                               |                                                    | (3,618
|US
        Dollar                      |                                                    |      
|Euro                                   |                                                    |      
|Yen                                    |                                                    |      
|                                       |                                                    |       
|at June 30, 2002                       |                                                    | (3,618
|                                       |                                                    |       
|at June 30, 2001 (unaudited)           |                                                    | (3,547
|                                       |                                                    |       

Maturity of financial liabilities

The maturity profile of the Group's financial liabilities at June 30, 2002 were as follows:

|                    | 2001        |        | 2002  | 
|------------------- | ----------- | ------ | ----- | 
|                    |             |        |       | 
|                    | (unaudited) |        |       | 
|                    | £'000       |        | £'000 | 
|In one year or less |             | 19,000 |       | 

Borrowing facilities

The undrawn committed facilities of the Group at June 30, 2002, mature as follows:

|                | 2001        |        | 2002  | 
|--------------- | ----------- | ------ | ----- | 
|                |             |        |       | 
|                | (unaudited) |        |       | 
|                | £'000       |        | £'000 | 
|Within one year |             | 31,000 |       | 

Guarantees

The company has given a letter of guarantee to secure a committed borrowing facility of £0.8 million for a subsidiary  undertaking.

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Fair values

Set out below is a comparison by category of book values and fair values of the Group's financial assets and liabilities at  June 30, 2002.

|                                                                               | 2001 (unaudited) |         | 2002       | 
|------------------------------------------------------------------------------ | ---------------- | ------- | ---------- | 
|                                                                               | Book value       |         | Fair value | 
|                                                                               |                  |         |            | 
|                                                                               | £'000            |         | £'000      | 
|Primary financial instruments held or issued to finance the Group's operations |                  |         |            | 
|Borrowing falling due within one year                                          |                  | (19,000 | )          | 
|Financial assets:                                                              |                  |         |            | 
|Investments                                                                    |                  | 5,102   |            | 
|Cash and liquid resources                                                      |                  | 8,638   |            | 

All investments have been valued at cost, as this is not significantly different from their fair values.

Gains and losses on hedges

The Group enters into forward foreign currency contracts to eliminate the currency exposures that arise on trading  balances denominated in foreign currencies. Changes in the fair value of instruments used to hedge foreign currency  monetary assets and liabilities are recognized in the financial statements in the hedged periods. There were no  unrecognized gains or losses at the quarter end as there were no open derivative positions.

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31 Summary of Major Differences between Generally Accepted Accounting Principles in the United Kingdom and  the United States

The consolidated financial statements are
  prepared in accordance with accounting principles generally accepted in the
  United Kingdom. Such principles differ in certain respects from US GAAP.

Application of US GAAP as described below
  has the following effect on the Group's consolidated net income/(loss) and shareholders'
  equity:

|                                                                                                         | 3
      months ended
      June 30, 2000 |         | 3
      months ended
      June 30, 2001 |  | 3
      months ended
      June 30, 2002 |  
|-------------------------------------------------------------------------------------------------------- | ---------------------------------------- | ------- | ---------------------------------------- |  | ---------------------------------------- | -
|                                                                                                         |                                          |         |                                          |  |                                          |  
|                                                                                                         | (unaudited)                              |         | (unaudited)                              |  |                                          |  
|                                                                                                         | £'000                                    |         | £'000                                    |  | £'000                                    |  
|Net
        loss according to the consolidated statements of operations
        (prepared under UK GAAP) |                                          | (15,328 | )                                        |  | (15,365                                  | )
|Business
        combinations:                                                                           |                                          |         |                                          |  |                                          |  
|Amortization
        of goodwill                                                                         |                                          | (194    | )                                        |  | 138                                      |  
|Full
        consolidation of joint venture company                                                      |                                          | 67      |                                          |  |                                         |  
|Deferred
        bank charges                                                                            |                                          |        |                                          |  | (1,250                                   | )
|                                                                                                         |                                          |         |                                          |  |                                          |  
|Net
        loss in accordance with US GAAP                                                              |                                          | (15,455 | )                                        |  | (16,477                                  | )
|                                                                                                         |                                          |         |                                          |  |                                          |  
|Loss
        per share in accordance with US GAAP                                                        |                                          |         |                                          |  |                                          |  
|Basic                                                                                                    |                                          | (13.4p  | )                                        |  | (14.3p                                   | )
|Diluted                                                                                                  |                                          | (13.4p  | )                                        |  | (14.3p                                   | )

|                                                                                                  | June 30, 2001 |         | June 30, 2002 | 
|------------------------------------------------------------------------------------------------- | ------------- | ------- | ------------- | 
|                                                                                                  |               |         |               | 
|                                                                                                  | (unaudited)   |         |               | 
|                                                                                                  | £'000         |         | £'000         | 
|Shareholders' equity according to the consolidated balance sheet
        (prepared under UK GAAP) |               | 14,550  |               | 
|Goodwill                                                                                          |               | 13,632  |               | 
|Write
        off of in process research and development                                          |               | (2,368  | )             | 
|Amortisation
        of goodwill                                                                  |               | (11,388 | )             | 
|Investment in associates  net assets                                                             |               | 204     |               | 
|Investment in associates  goodwill                                                               |               | 7,114   |               | 
|Less amortisation                                                                                 |               | (6,717  | )             | 
|Unrealized appreciation on investments                                                            |               | 12,598  |               | 
|Full consolidation of joint venture company                                                       |               | (19     | )             | 
|Revenue recognition                                                                               |               | (938    | )             | 
|Deferred bank charges                                                                             |               |        |               | 
|Tax effect of US GAAP adjustments                                                                 |               | (3,760  | )             | 
|                                                                                                  |               |         |               | 
|Shareholders'
        equity in accordance with US GAAP                                           |               | 22,908  |               | 
|                                                                                                  |               |         |               | 

(1) Purchase Accounting

All of the Group's acquisitions have been accounted for using purchase accounting for both UK and US GAAP. Under UK  GAAP, in-process research and development costs are not identified as an acquired asset in the purchase price but rather  are capitalized as goodwill and amortized over the expected useful life. US GAAP requires the identification of in-process  research and development as a component of the purchase price allocation. Such amounts in which

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technological feasibility has not been established and that have no alternative
future use must be charged as an expense at the time of acquisition. In accordance
with US GAAP, the Group has identified £24.2 million in the aggregate as
in-process research and development, all of which was expensed in the periods
in which the related acquisitions were completed (1996: £8.2 million, 1997:
£13.8 million, and 1999: £2.4 million).

The Group has recorded the excess of the fair
  value of consideration paid over the fair value of identifiable net assets acquired,
  for US GAAP purposes in connection with various acquisitions. For the quarters
  ended June 30, 2000, 2001 and 2002, goodwill is amortized over 3 years for both
  UK and US GAAP purposes as 3 years is the estimated useful life due to the rapid
  pace of change in the industry.

In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard  ("SFAS") No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141  requires that the purchase method of accounting be used for all business combinations initiated after June 30, 2001 as  well as all purchase method business combinations completed after June 30, 2001. SFAS No. 141 also specifies criteria  intangible assets acquired in a purchase method business combination must meet to be recognized and reported apart  from goodwill, noting that any purchase price allocable to an assembled workforce may not be accounted for separately.  SFAS No. 142 will require that goodwill and intangible assets with indefinite useful lives no longer be amortized, but  instead tested for impairment at least annually in accordance with the provisions of SFAS No. 142. SFAS No. 142 will also
require t


hat intangible assets with definite useful lives be amortized over their respective estimated useful lives to their  estimated residual values, and reviewed for impairment in accordance with SFAS No. 144, Accounting for the Impairment  of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.

The Group is required to adopt the provisions of SFAS No. 141 immediately and SFAS No. 142 is effective for fiscal years  beginning after December 15, 2001. Furthermore, any goodwill and any intangible asset determined to have an indefinite  useful life that are acquired in a purchase business combination completed after June 30, 2001 will not be amortized, but  will continue to be evaluated for impairment in accordance with the appropriate pre-SFAS No. 142 accounting literature.  Goodwill and intangible assets acquired in business combinations completed before July 1, 2001 will continue to be  amortized prior to the adoption of SFAS No. 142.

Under UK GAAP, purchased goodwill in respect of acquisitions before 1 January 1998 was written off to reserves in the  year of acquisition. Purchased goodwill in respect of acquisitions since 1 January 1998 is capitalized in accordance with  the requirements of FRS 10 Goodwill and Intangible Assets. Positive goodwill is amortized to nil in equal installments  over the estimated useful life. Upon subsequent disposal or closure of an acquired business, any goodwill previously  taken directly to shareholders' equity is reflected in the income or loss on disposal.

For acquisitions prior to 1 April 1998, the benefit of acquired tax losses, as they are recognized in periods subsequent to  acquisition are credited to income under UK GAAP and credited to goodwill for US GAAP. There is no difference in  treatment for acquisitions subsequent to 1 April 1998.

(2) Consolidation and Accounting for Investments in Common Stock

Certain investments made by the Group during the year ended 31 March 2000 have been reported differently under UK  GAAP and US GAAP due to the respective definitions of a subsidiary, joint venture, associate and investment.

Under UK GAAP, definitions of subsidiary, joint venture, associate and investment are broadly based upon control, to a  certain extent irrespective of the percentage of shares held. Under US GAAP, the percentage of shares held is the primary  basis on which an investment is categorized as a subsidiary, joint venture, associate and investment. Strong evidence
must be

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present in order to not consolidate an entity with a greater than 50% shareholding
or to equity account for an investment of greater than 20% shareholding.

During the year ended 31 March 2000, the Group acquired a 75% interest in Proein SL. Because of the nature of the  contractual joint control arrangements, this investment is considered joint ventures in accordance with UK GAAP and is  accounted for using the equity method of accounting. For US GAAP purposes, Proein SL has been treated as a subsidiary  and consolidated. While on a line-by-line basis, the statement of operations and balance sheets differs under UK and US  GAAP, in reconciling net income and shareholders' equity from UK to US GAAP, there is only one difference relating to  the treatment of the provision for unsold inventory. The Group is one of Proein SL's main suppliers. At each period-end,  adjustments are made to eliminate the Group's profit on inventory sold to Proein SL that remains unsold. Adjustments  are made for both UK and US GAAP, however the adjustment is 75% for UK GAAP and 100% for US GAAP.

The Group, in a series of acquisitions, acquired
  a 26% interest in Top Cow Productions during the years ended 31 March 1999 and
  2000. Under UK GAAP, this was considered an investment and not an associate
  that would be accounted for using the equity method because although the Group
  had a participating interest (defined as greater than 20%), it did not exercise
  significant influence over the operating and financial policies of Top Cow Productions.
  Under US GAAP, an investment of over 20% of the voting stock of an investee
  leads to the presumption that an investor has the ability to exercise significant
  influence over the investee. In accordance with US GAAP, the investment in Top
  Cow Productions was accounted for using the equity method.

(3) Equity securities

Under UK GAAP, available for sale securities
  are stated at cost less provision for any impairment in value. Under US GAAP,
  these securities are marked to market with any unrealized gains and losses excluded
  from earnings and reported in a separate component of shareholders' equity.
  In prior years, the Group had a significant investment (15%) in a technology
  company listed on the Norwegian stock exchange (Opticom ASA). During March 2000,
  the Group sold a large proportion of its shareholding (at a discount to then
  quoted market price). The remaining holding was being marked to market under
  US GAAP until its disposal during the twelve months ended March 31, 2002.

(4) Revenue recognition

Under UK GAAP, license income and advance
  royalties are recognized when contractually due and non-refundable. Under US
  GAAP, SEC Staff Accounting Bulletin No. 101 requires the deferral of non-refundable,
  up-front fees unless the up-front fees are in exchange for products delivered
  or services performed that represent the culmination of a separate earnings
  process. During the year ended March 31, 2000, the Group received non-refundable
  advance royalties which met the criteria for revenue recognition under UK GAAP
  but not under US GAAP. Accordingly, under US GAAP these advance royalties had
  been deferred but were recognized in the fifteen months to June 30, 2002 as
  the associated royalties were actually earned.

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(5) Deferred taxation

The tax effects of temporary differences that give rise to deferred taxes are:

|                                           | June 30, 2001 |         | June 30, 2002 | 
|------------------------------------------ | ------------- | ------- | ------------- | 
|                                           |               |         |               | 
|                                           | (unaudited)   |         |               | 
|                                           | £'000         |         | £'000         | 
|Net operating loss carry forward           |               | 26,927  |               | 
|Capital loss on investment in Express.Com  |               | 10,798  |               | 
|Other                                      |               | 10,158  |               | 
|                                           |               |         |               | 
|                                           |               | 47,883  |               | 
|Valuation allowance                        |               | (46,455 | )             | 
|                                           |               |         |               | 
|Deferred tax asset                         |               | 1,428   |               | 
|Unrealized appreciation of investments     |               | (3,760  | )             | 
|                                           |               |         |               | 
|Net
        deferred tax asset/(liability) |               | (2,332  | )             | 
|                                           |               |         |               | 

As at June 30, 2002, the Group had federal
  operating loss carry forwards of £79.2 million, of which £70.1 million
  expire between 2012 and 2022 and £9.1 million have an unlimited carry
  forward period. Additionally, the Group has local operating less carry forwards
  of £31.7 million, expiring between 2003 and 2012.

The deferred tax asset in relation to Express.com
  relates to the £35.4 million writedown of this investment. At 30 June 2002,
  the capital/loss carry forward is £28.4. Capital losses in relation to
  this have unlimited carry forward.

As of June 30, 2002, management of the Company
  has evaluated the positive and negative evidence as required by US GAAP, impacting
  the realizability of the deferred tax assets. Accordingly, the deferred tax
  assets have been partially reserved. Management believes that it is more likely
  than not that the net deferred tax asset will be realized.

Subsequently recognized tax benefits relating to the valuation allowance for deferred tax assets as of June 30, 2002 will  be allocated as follows:

|                                                                                  | £'000 |       
|--------------------------------------------------------------------------------- | ----- | ------
|                                                                                  |       |       
|Income tax benefit that would be reported in the Consolidated Statement of Income |       | 45,805
|Goodwill and other non-current intangible assets                                  |       | 306   
|                                                                                  |       |       
|                                                                                  |       | 46,111
|                                                                                  |       |       

The net change in the valuation allowance
  for the quarter was a decrease of £0.5 million (2001: increase of £0.5
  million).

Under UK GAAP, deferred tax assets are classified under Debtors, or in some circumstances, net off deferred tax  liabilities. Under US GAAP, deferred tax liabilities and assets are classified as current or non-current based on the  classification of the related asset or liability for financial reporting. Deferred tax assets related to carry forwards are  classified according to the expected reversal date of the carry forward.

As at June 30, 2002, the Group does not believe that there was any material deferred tax liability arising from the excess of the value of its subsidiaries, joint ventures or associates over their base cost for tax purposes.

Under UK GAAP, the share of tax incurred by joint ventures is included in the tax on loss of ordinary activities. Under US  GAAP, this tax would be included as part of equity in loss of affiliates within income before income taxes.

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(6) Deferred Bank Charges

Under the terms of the agreement with the
  Royal Bank of Scotland, certain fees became payable on the variation of the
  Group's banking facility which took place after the 31 March 2001 year end.
  Since these fees were both known and quantifiable at the year end, they were
  accrued in full in the year, under UK GAAP. Under US GAAP however, any such
  fees relating to the early extinguishment of debt must be recognised in the
  period of extinguishment. Consequently, these fees were expensed during the
  quarter to June 30, 2001 under US GAAP.

(7) Consolidated Statements of Cashflow

The consolidated statements of cashflow prepared
  in accordance with Financial Reporting Standard No. 1 (revised) present substantially
  the same information as that required under US GAAP. However, under US GAAP
  the cashflows of one of the joint ventures in Spain (which is consolidated as
  a subsidiary under US GAAP and equity accounted under UK GAAP) should be added.
  This has the effect of increasing the net cash inflow by £6,000. In addition,
  under US GAAP, there are certain differences from UK GAAP with regard to classification
  of items within the cashflow statement and with regard to the definition of
  cash and cash equivalents.

Under UK GAAP, cashflow is presented separately
  for operating activities, returns on investments and servicing of finance, taxation,
  capital expenditure and financial investment, acquisitions and disposals, management
  of liquid resources and financing activities. Under US GAAP cashflow is presented
  separately for operating activities, investing activities and financing activities.
  Cashflow from taxation and returns on investments and servicing of finance would,
  with the exception of dividends paid and costs of financing, be included as
  operating activities under US GAAP. The payments of dividends and costs of financing
  would be included under financing activities under US GAAP.

Under US GAAP, cash and cash equivalents do
  not include bank overdrafts, as is the case under UK GAAP. Under US GAAP such
  bank overdrafts are presented within financing activities.

Under US GAAP, capital expenditure and financial
  investment and acquisitions and disposals are included in investing activities.

Set out below, for illustrative purposes,
  is a summary consolidated statement of cashflow under US GAAP.

|                                                     | Quarter ended June 30, 2000 |        | Quarter ended June 30, 2001 |  | Quarter ended June 30, 2002 |  
|---------------------------------------------------- | --------------------------- | ------ | --------------------------- |  | --------------------------- | -
|                                                     |                             |        |                             |  |                             |  
|                                                     | (unaudited)                 |        | (unaudited)                 |  |                             |  
|                                                     | £'000                       |        | £'000                       |  | £'000                       |  
|Cash flow from operating activities                  |                             | (7,641 | )                           |  | (18,781                     | )
|Cash flow from investing activities                  |                             | (1,165 | )                           |  | (265                        | )
|Cash flow from financing activities                  |                             | (24    | )                           |  | 42                          |  
|                                                     |                             |        |                             |  |                             |  
|Net increase/(decrease) in cash and cash equivalents |                             | (8,830 | )                           |  | (19,004                     | )
|                                                     |                             |        |                             |  |                             |  

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Accounting for stock-based compensation

The Group has adopted only the disclosures required by SFAS No. 123, Accounting for Stock-Based Compensation, and  will continue to recognize stock-based compensation expenses under APB Opinion No. 25. Accounting for Stock Issued to  Employees. As required, pro-forma net income/(loss), earnings/(loss) per share and weighted-average grant-date fair  value of options granted, based on SFAS 123's fair value methodology are disclosed below. The fair values of options  were determined assuming an expected average life of three years (three or four years for the Sharesave Schemes) and  risk-free interests ranging from 4.9% to 5.1%. Furthermore, volatility of 75% (2001: 75%, 2000: 186%) and dividend yield of  nil were assumed. The stock-based compensation expense is recognized over the vesting period which is generally three  years.

|                                                   | 3 months ended June 30, 2000 |         | 3 months ended June 30, 2001 |  | 3 months ended June 30, 2002 |  
|-------------------------------------------------- | ---------------------------- | ------- | ---------------------------- |  | ---------------------------- | -
|                                                   |                              |         |                              |  |                              |  
|                                                   | (unaudited)                  |         | (unaudited)                  |  |                              |  
|In thousands, except per share data                | £'000                        |         | £'000                        |  | £'000                        |  
|Income/(loss)
        for the period under US GAAP |                              | (15,455 | )                            |  | (16,477                      | )
|Adjustment:                                        |                              |         |                              |  |                              |  
|Stock-based compensation expense under SFAS 123    |                              | (434    | )                            |  | (446                         | )
|                                                   |                              |         |                              |  |                              |  
|Pro forma income/(loss) for the period             |                              | (15,889 | )                            |  | (16,923                      | )
|                                                   |                              |         |                              |  |                              |  
|Pro forma earnings/(loss) per share                |                              | (13.8p  | )                            |  | (14.6p                       | )
|                                                   |                              |         |                              |  |                              |  

|                                                           | Eidos stock option schemes |     
|---------------------------------------------------------- | -------------------------- | ----
|                                                           |                            |     
|                                                           | £                          |     
|Weighted-average grant-date fair value of options granted: |                            |     
|Quarter ended June 30, 2000                                |                            | 2.20
|Quarter ended June 30, 2001                                |                            | 1.94
|Quarter ended June 30, 2002                                |                            | 1.33

32 Companies Act 1985

The consolidated financial statements do not constitute "statutory accounts" within the meaning of the Companies Act  1985 (United Kingdom) for any of the periods presented. Statutory accounts for the periods ended March 31, 2001 and  2000 have been filed with the United Kingdom's Registrar of Companies. The auditor has reported on these accounts. The  reports were unqualified and did not contain statements under Section 237 (2) or (3) of the Act. In addition, statutory  accounts for the fifteen months to June 30, 2002 will be filed shortly.

These consolidated financial statements exclude certain parent company statements and other information required by  the Companies Act 1985, however, they include all material disclosures required by generally accepted accounting  principles in the United Kingdom including those Companies Act 1985 disclosures relating to the statement of income  and balance sheet items.

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ITEM 19  EXHIBITS.

The following documents are filed as part of this annual report:

|                                                                                                  |  | Page | 
|------------------------------------------------------------------------------------------------- |  | ---- | 
|Press
        Release dated June 17, 2002, details of additional listing                          |  | E-1  | 
|Press
        Release dated July 3, 2002, holding in Company                                      |  | E-2  | 
|UK
        Press Release dated September 5, 2002, containing details of 15 months
        results |  | E-3  | 
|US
        Press Release dated September 5, 2002, containing details of 15 months
        results |  | E-4  | 
|Press
        Release dated September 23, 2002, Interests of Director                             |  | E-5  | 
|Press
        Release dated September 23, 2002, Director shareholding                             |  | E-6  | 
|Press
        Release dated September 25, 2002, Director shareholding                             |  | E-7  | 
|Chief
        Executive Officer Certification                                                     |  | E-8  | 
|Group
        Finance Director Certification                                                      |  | E-9  | 

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and  authorized the undersigned to sign this transition report on its behalf.

Eidos plc

(Registrant)/s/Stuart Cruickshank
  (Group Finance Director)

Date: September 27, 2002

CERTIFICATIONS

I, Michael McGarvey, certify that:

|1. | I have reviewed this transition report on Form 20-F of Eidos plc:
|-- | -----------------------------------------------------------------
|   |                                                                  

|2. | Based on my knowledge, this transition report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this transition report:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                 

|3. | Based on my knowledge, the financial
      statements, and other financial information included in this transition
      report, fairly present in all materially respects the financial condition,
      results of operations and cash flows of the registrant as of, and for, the
      periods presented in this transition report.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                        

|Date: September 27, 2002 |  | /s/ Michael McGarvey                          
|------------------------ |  | ----------------------------------------------
|                         |  | Michael McGarvey
      Chief Executive Officer

I, Stuart Cruickshank, certify that:

|1. | I have reviewed this transition report on Form 20-F of Eidos plc:
|-- | -----------------------------------------------------------------
|   |                                                                  

|2. | Based on my knowledge, this transition report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this transition report:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                 

|3. | Based on my knowledge, the financial
      statements, and other financial information included in this transition
      report, fairly present in all materially respects the financial condition,
      results of operations and cash flows of the registrant as of, and for, the
      periods presented in this transition report.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                        

|Date: September 27, 2002 |  | /s/ Stuart Cruickshank                         
|------------------------ |  | -----------------------------------------------
|                         |  | Stuart Cruickshank
      Group Finance Director

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