The teenage Liverpool striker has been brought in to endorse a new version of World League Soccer which should be in the shops by Christmas.
Eidos chief executive Charles Cornwall said the company had signed Owen in an exclusive deal stretching over several years. Although he refused to comment on how much the footballer was receiving, industry experts said the deal, which is likely to be linked to game sales, would be worth hundreds of thousands of pounds.
Michael Owen may also promote Eidos' other football products that include the popular Championship Manager.
The news came as Eidos reported a pre-tax loss of pounds 2.3m against pounds 8.6m in the same period of last year, with turnover soaring 175 per cent to pounds 25.8m.
Eidos shares, which have fallen sharply in recent months, jumped 25p to close at 707p.
Eidos, best known for Tomb Raider, is planning to release Tomb Raider 3 at Christmas.
Mr Cornwall said: "It's safe to say we are always looking at things," when asked about persistent acquisition rumours.