Computer games publisher Eidos said the industry was still suffering a slowdown ahead of the release of Sony's PlayStation 2 later this year.
The company, home to the legendary Lara Croft, heroine of the Tomb Raider games, said it was confident it could weather the storm.
The comments came as Eidos reported first-quarter results figures broadly unchanged on last year.
The group has seen sales hit by consumers awaiting the next generation of consoles.
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