'Ineffective structure'

Shares in the firm plunged 22% after the announcement.

"Our quality has slipped below acceptable standards," the company said in a statement.

"Through disappointing game development and working within an ineffective operating structure, we are failing to realise the commercial return our creative ability."

Mr Rogers took over from the company's founder, Jane Cavanagh, who resigned in January.

Lara Croft

The company has been battered by poor results, failing to deliver new games on time and the collapse of takeover talks.

SCI hit trouble last July when it warned that profits would not meet expectations.

It began talks with potential buyers in September, but in January announced those discussions had collapsed.

It also delayed the release of four new games until the final three months of 2008, including the postponement of the latest in the Tomb Raider series.

SCI bought Eidos, the owner of Tomb Raider and its heroine, Lara Croft in 2005.