Argonaut shares slump as videogame delayed

Video-games group Argonaut saw shares slump by almost a quarter today after it announced a delay in the launch of its eagerly-awaited game Malice.

The reorganisation of the group’s publishers Vivendi, it said, and the additional development costs would also have a “significant impact” on the group’s results for the year ending July 31.

It said: "Although any delay to the launch of a game is very disappointing, we believe the maintenance of the very high quality standard of Argonaut’s games is of vitals to the group’s long-term performance."

The game will not be released until the autumn allowing the group to make further developments to the game.

Shares were down 20% at 13p.

Last year the group reported a £2.8m (€4.1) increase in pre-tax profits for the year ending July 31, 2002.

On a lighter note, Argonaut received a boost from sales of its Harry Potter games, based on the JK Rowling best-sellers, which earned the group £2.2m in royalties during the last half year.

The Edgware-based group said the games Harry Potter and the Chamber of Secrets and its predecessor, Harry Potter and the Philosopher’s Stone, had performed in line with expectations.

Both titles sold more than one million copies, securing the top spot in the UK’s gaming chart for PlayStation One consoles.

Harry Potter and the Philosopher’s Stone held onto the number one spot for 12 weeks whilst the sequel, released in November last year, was top of the charts for five weeks.

Development of the group’s other games has continued with the European release of Kung Fu Chaos planned for April. The game, which received good reviews, will be released in the US on February 25 – six weeks earlier than planned.

The group said it expects to announce its interim results for the six months to January 31 on March 12.