Our programme of structured and controlled investment in product development and selected high profile licenses is designed to ensure that the depth and quality of the release schedule is maintained. We believe that the integrity of our publishing decisions will continue to translate into successful growth for the Group. This profit is after the non-operating charge of 3.0 million to reflect the fall in the market price of Opticom as at 31 December 1998 in which Eidos has an investment. The net cash outflow from operating activities was 17.5 million compared to 25.0 million in the corresponding period of 1997. The Dark Project, Links 99 and The Unholy War.
Cost of sales includes royalties paid to developers in excess of development advances paid.
Royalty costs in the period were 11.6 million compared to 4.6 million in the corresponding period of 1997 reflecting the success of the titles released this year. The increase reflects the growing use of TV advertising to promote Eidos valuable franchises. The fixed element of selling and marketing costs was 10.9 million compared to 6.8 million in the prior year. Costs have continued to rise in line with the general expansion of Eidos. Product development includes 20.3 million invested in a pipeline of over 40 titles scheduled to be released over the next two years.