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Loki Files For Chapter 11 Protection

yamla writes: "Loki is dead!" and points to a Linux Review article which says the gaming company has filed for protection from creditors under bankruptcy laws. Yamla continues: "Read about it here. This is terrible news! I have paid for some of their games and they were always at least as good as the Windows versions. I hope Loki can pull out of bankruptcy and keep going but if not, it will be our loss." There is also a story at LinuxToday (pointed out by reader Beee) which draws from the Linux Review report. Meanwhile, the Loki site appears business-as-usual. Filing for bankruptcy protection is not the same as being "out of business," but it's uncomfortably close.

24 of 708 comments (clear)

  1. Hmmm... by NonSequor · · Score: 5, Funny

    It just occurred to me that they may just be filing Chapter 11 to get people to buy more games from them. Hell, it worked on me, I just bought two games from them.

    --
    My only political goal is to see to it that no political party achieves its goals.
  2. Unite! Go buy a game! by !Xabbu · · Score: 5, Insightful
    I was going to buy my first Linux based game when Kohan came out. This frusterates me. I'm sure they will be around for this release, but UGH!

    Perhaps its time to change the business model. Maybe they should focus on becoming a service for game manufacturers that ports the games for a fee but doesn't sell them?

    Another thought would be to get away from the damn 1st person shooters. I'm sick of them. Its getting old. Perhaps they could get in with a windows gaming company before a game is released (wishful thinking..) and simultaneously release.

    Another thought would be to release bare bones versions with a CD only and a PDF of the manual for a lower price. Kohan is bloody expensive for me to buy in Canada (so I'm not going to purchase it from Loki). Maybe they should throw a wad of cash that they don't have into marketing with large chains. Up here Business Depot carries Linux of various flavours.. maybe they could get in there.

    What it comes down to is this is/will be a big kick to the crotch of linux gaming. :(

    --

    - Jimbob
  3. I have been a very happy Loki customer by Kiwi · · Score: 4, Insightful
    I have a number of Loki games that I have purchased, including Heroes of Might and Magic III (one of the few games I was willing to dual-boot to play) which I was delighted to see ported to Linux, and RailRoad Tycoon II.

    Loki has always done a wonderful job in porting games to Linux. While, of course, the actual games had to be proprietary, they made a number of contributions to the Linux community, including the SDK kit.

    I don't know how to say this politely, so I will sa it bluntly: The average game player is the ultimate addict of the consumer culture. They want someone else to hand them entertainment on a silver platter. I can see why many gamers do not have the willingness nor patience to learn how to use Linux as a desktop operating system.

    Which is a shame, because a lot of those same gamers become the corporate IT department, and end up responding to the word "Linux" with great hostility.

    Anyway, enough of my rant. I hope a miracle happens and Loki is able to pull out of this one. I will make sure to purchase every Loki game I can see at Fry's later on this week.

    - Sam

    --

    The secret to enjoying Slashdot is to realize that it should not be taken too seriously.

  4. Lets Save Loki!! by stuce · · Score: 5, Insightful

    Listen! Loki is only $400,000 in debt. That's not that much. "Will someone with deep pockets save Loki?" No. But we can! They may have gone chapter 11 but the web site is still taking sales.

    I don't know what their overhead is but let's assume they make $20 on each sale. That means they only need to sell 20,000 games to be back at ground zero. That's a small percentage of the slashdot population! I know many of us are starving college students and trolls but most of us are well-to-do IT people making real money!

    Why stick out necks out to save Loki? I'll tell you why. They have not only made games on linux a reality, but they have made the ability to have games on linux a reality. They made SDL one of the best media layers for any platform. They made OpenAL, the only cross architecture 3D sound library. They pushed the XFree and Mesa developers giving them the need and the user base to make OpenGL on Linux stop being "ok" and start to "kick ass". If it were not for Loki, there would be no Maya for Linux, there would be no glx in XFree86, there would be no SDL. If they go we will lose one of the biggest forces pushing the linux desktop's quality. All of you who remember what 3D, 2D and sound were like on Linux 4 years ago - you KNOW how far we have come, and we owe much of it to Loki.

    I know money is tight (it's always tight), but we have an opportunity to save one of the coolest Linux companies around. Like games? Buy some right now, while we still can. Don't like games? Make a 'donation' to Loki to say thanks for all their hard work. Poor? Get one of the older 'on sale' games. Company just IPO'ed? Get two of each and give them to your friends. There are SO many of us!! Sure, Linux companies are dropping like flys but none fill the niche that will be left empty once Loki is gone.

  5. They should do both. by mcc · · Score: 5, Insightful

    Don't port to linux. Don't port to mac, either.

    Write a decent compatibility library, or tweak SDL for your own uses. Port to that. It would be a bit more work to try to cover up all the loose places where the compatibility library doesn't fit that os well, but you'd be able to simulteneously release for linux, mac, mac os x, and linuxppc, and maybe later on put together a SUPER HAPPY FISH BONUS PACK! with playstation2 versions of like four of the games you just ported to linux/mac.
    If you're going to bother with the herculean task of porting spaghetti code (which most games are) to a different operating system, take the extra time to work in a sane portability architecture. In doing so you'll probably at least double your possible target audience with not *that* much work.

    That being said, you probably could make more money off the mac users. Mac users probably aren't as heavy into gaming, true, but mac users are a captive audience. Unlike (((the majority of!))) linux users, mac users do'nt have the option of booting into windows. Now that bungie is dead, they have only what can be ported or emulated, and because there have been almost no new mac ports to speak of in nearly forever they are mostly starved for decent games and will probably run anything even mediocre that runs on their computers.

    What? Bitter because Loki seems to be gone, and dynamix seems to be gone, and i will probably never get that mac os x version of Tribes 2 i've been wanting so badly? Who, me?

  6. Re:There is no justice in the world..... by jbarnett · · Score: 5, Funny

    I suppose we could have also saved pets.com if every Slashdot reader had bought just one 50-pound sack of dog food

    I bought a 50 pound bag of dog food, and I tell you what it sucked ass. I mean it didn't even taste like real dog, more like fake filler substance and beef. I had to make meatloaf out of it and smoother it ketchup to just get it down.

    --

    "`Ford, you're turning into a penguin. Stop it.'" -THHGTTG
  7. Re:Unsavable? by Anonymous Coward · · Score: 5, Interesting
    Sir:
    • You have quoted someone else without his permission (shame shame)
    • I hardly think that an employee who left seven months ago is in a position to judge who is still employed.
    I have it on solid authority (namely, personal experience) that the count is significantly higher (5 technical, 2 artistic, and at least 4 administrative).

    Shame on you for kicking a puppy only trying to serve the community while it's down.

  8. Re:Chapter 11 != Out of Business by xwred1 · · Score: 5, Informative

    Speak of the Devil, just caught this on Linuxgames:


    Loki Software President Scott Draeker sent in the following regarding the bankruptcy report:

    People should not confuse this with a Chapter 7 liquidation, where you close the doors and sell off the assets. That is not what we have done.

    We filed a Chapter 11 reorganization. This will allows us to deal with our creditors fairly and equitably and at the same time continue to operate the company. We are still shipping products and porting new games and expect to be doing so for a long, long time.

  9. Re:Not a big surprise by norton_I · · Score: 4, Interesting

    That isn't true at all. There are many individuals, companies, manufacturers, schools, and foriegn governments to whom the low cost nature of free software is a huge incentive.

    I use Linux mostly for idealogical and technical reasons, but it certainly doesn't hurt that it saves me a few bucks I can spend on hardware.

    Given the cost for W2K server + client licenses, the cost makes a huge difference for companies running webserver farms. In many cases not as important as the technical issues, but important none the less.

    TiVo could have probably used WinCE, VxWorks, or QNX on the TiVo. But I am sure the $0/unit software licensing costs of Linux makes a huge difference to their bottom line.

    Schools, especially outside the US, are deploying Linux left and right, because especially on low cost hardware, the cost of windows is a big chunk of system price.

    So, yes, when we speak of free software, we mean freedom, but many people use Linux because that includes the freedom to copy it without paying licensing fees.

  10. Linux game market by Amon+Re · · Score: 4, Interesting

    The linux game market is simply not big enough to support a company like this and when you put in the fact that they don't get the same release dates as windows versions and the high warez rate of there games...I am surprised they lasted this long.

    1. Re:Linux game market by GauteL · · Score: 5, Insightful

      I'm sorry... but games is one area where you should not be extremist about free software.
      Why?

      1. Most has short development cycle and almost no benefit from long-term improvement. (There are exceptions, like multi-player-games that people play for a long time)
      2. It is important to not release to much info, because too much information spoils the game for people. This goes against normal development-policies.
      3. The developers mostly cannot have the same fun playing the game as others (again, as in 1. there are exceptions), this makes participating for "scratching an itch" impossible.
      4. There are a huge amount of people involved that aren't normally in geek-communities; artists, story-developers, musicians, etc.
      5. Because of graphical issues like speed, a lot of info is often in the client, that the gamer shouldn't know about, and an open-source version may more easily allow for cheating. It shouldn't be like this, but because of technical obstacles, it is.

      This all means that you take away almost all the benefits of regular open-source software (more eyeballs, more developers) and add inn a few bad side effects (spoilers, cheating, sheer costs), and you still demand that all games should be free-as-in-speech?

      It just isn't possible to make a living by creating most types of open-source-games. Some may be possible, but your narrow-minded view, would destroy the market for most types of games, if most people thought like you.

      Think about the added benefits to the community by having a company like Loki porting even closed source games. They release all of their common libraries under free licenses, and they have helped the community in developing free gaming and multimedia APIs.

      The point is, without Loki (a closed-source company), the free software community would be worse off.

    2. Re:Linux game market by IronChef · · Score: 5, Insightful


      A lot of people on this board go on at length about how they won't use this app or that app because it isn't Free-as-in-whatever. There are people here who won't even *use* something released under the BSD license because of ideological reasons. It's not free enough, I guess.

      I wonder what kind of percentage of the Linux market these people (zealots?) are? Maybe there just aren't enough Linux users willing to buy games, period, to support a company like this.

  11. Small target group? by bdkearns · · Score: 5, Informative

    In all of Loki's games that I've played, people complained because they wanted to switch from the Windows version to the Linux one. They did not understand that Loki had to pay for rights to port the game, and actually do work to port it. Loki's only real target buyers were people who already used Linux as their primary OS. Most of these target people probably:
    1. Were not used to shelling out money for games.
    2. Did not play games as a primary occupation.

    Before a company like Loki can succeed, I think that there needs to be:
    1. A larger Linux userbase.
    2. Simultaneous releases across platforms.
    3. An easier way for Windows users to switch to the Linux version, than trying to return their Windows version of the game and get their money back.

  12. Chapter 11 != Out of Business by antis0c · · Score: 4, Informative

    I'm glad the article noted that Chapter 11 does not mean you are going out of business. This is often confused. This merely means you are seeking protection from creditors to buy yourself time to re-organize and create a plan to pay back your debt, and become profitable.

    In todays market, it's very hard to find funding for a tech business. We can all thank Dotcoms for that with their VC Funded Businesses based on Phantom products.

    I personally think Loki will be able to pull through this. I just recently downloaded a bundle of Loki demos for Linux, very impressive. They all worked rather well and with little effort, the installer was a shell script with I think binaries encoded, haven't looked but it loaded a GTK based installer that automatically asked which demos I wanted, and downloaded them accordingly. I was very impressed. I hope their upper management has as much talent as their programmers. They'll surely pull through if this is the case. I think what would be a potentially successful model would be to create a Linux gaming "environment". Basically an environment that superceeds your normal distributions environment. Libraries, Programs, what ever required, then build all the games accordingly. This would help with a lot of cross-distribution incompatibilties and help promote gaming in Linux. Unfortunately Linux was not designed for gaming, and Linux does not own a large share of the desktop market (the market that plays the most games), so they face a very large challenge..

    --

    ..There's a-dooin's a-transpirin'
  13. Re:Open Source LOKI!!! by rhavyn · · Score: 5, Insightful

    The libraries they wrote to port the games have been open source since day one. You know, little things like SDL and OpenAL. Yea, loki wrote them. And it'd be tough for them to release the source code to games when *they don't own the source.*

    Does anyone on slashdot actually know what the hell is going on anymore?

  14. Twist of Fate - the PC gaming business explained by standards · · Score: 5, Insightful

    Of course, the pundits will say that there is no profit in the Linux game market, and therefore the Chapter 11.

    But wait! There is almost no profit in the PC game market PERIOD. It's is very difficult to make a profit in this business. Game development is an expensive proposition - especially when it comes to the advanced graphics and gameplay that we all expect today.

    Even high-quality Windoze-centric shops have gone away - just look at Looking Glass studios for one. Gone! And they didn't do ANY linux. And they had great games, and excellent sales. And they were liquidated just last year.

    The fact is that computer games like "Who wants to be a millionaire" sell bigger than all the rest, and they're cheap-as-dirt to create. Why spend $5 million for game development, when for $200,000 you can create a cheesey game that has 10x the number of sales???

    Strangely, these days, the home console market is the only place where sophisticated computer games have a fair chance of being profitable. The sales volumes are significantly greater than those sales for Linux... and Windows.

  15. Catch 22 leads to chapter 11 by Gen-GNU · · Score: 5, Informative
    Well, I can't say I am really surprised by this...
    I have personally only bought 2 games from loki. I bought quake 3 and railroad tycoon2 (one of the very first they did). In that time, I have probably bought 10 times that number of windows games.

    The catch 22 is that until all games come out for linux, and at the same time as windows, most people will keep dual booting. But until enough people run linux, (and buy games), but don't run windows, game companies won't have incentive to develop for linux, except as an afterthought.

    Since I have a windows partition, I usually get games I see on the shelves that look cool, or ones I have heard about from a friend. When I see a /. story about loki, I go to their site, and usually see a new game they have done, but I already own it for windows.

    I wish Loki the best. And I wish I could say something like &quot From now on, I am going to buy games from loki, if only to support gaming on Linux. &quot But in truth, I know that I will continue to buy the cool new games as soon as they come out, and unfortunately, that usually means I won't be buying from Loki.

  16. Re:Paypal Account? by pbryan · · Score: 5, Insightful

    I think it is important to address the questions you ask in as honest a manner as possible.

    The linux community has rallied behind causes we felt were worth supporting in the past, however cannot remember any instance in which the community has rallied behind a commercial venture before.

    Nor can I, and I think the reason is simple: the Linux community has not and probably will not rally behind commercial organizations. It's generally counter to the open-source, share-information culture inherent in the Linux community.

    Anyone interested in setting up a Paypal account for the purpose of helping out Loki?

    Maybe, but not me, and not a lot of Linux enthusiasts. I prefer to apply my time and financial resources toward a cause that better suits my needs in the end, and gaming is not it.

    Today, my strongest Linux interests are: stronger office suite offerings, stronger video editing offerings and Sorenson codec cloning/grafting/hacking -- whatever to get the damn support working under Linux.

    I believe such endeavours are more beneficial to the Linux community at large, and if I'm wrong, at least such endeavours better fulfill my needs of Linux, which is the whole point.

    Contribute where it matters to you most, worry about your own self interests, others will do the same, and if we share our results, we all win in big ways.

    Maybe games fill that role for more Linux enthusiasts than I think. I have been known to make mistakes ... (pause) ... from time to time.

    Would you be willing to donate a few bucks to help keep Loki afloat?

    I think you may be largely underestimating the problems that Loki faces. Maybe some donations will pull them out of their current financial crisis, but there's no indication that they would come up with a long term strategy that works both for the Linux community and fiscally.

    If a company cannot work at a financial level, the battle is already lost, it's just a matter of time. Nobody wants to sink money into a black hole, even if it feels like a good cause. If you don't think it will make a difference, then what's the point?

    Anyone with me?

    I'm sorry, but I think anyone who follows this proposition on its face is asking to waste money. I think it only wise to "chip into" projects that can demonstrate (or at least illustrate) an endgame that makes sense - namely: a company that can sustain itself and provide value to the Linux community.

    I like Loki. I like its games. I like the quality of its work. I like its contributions to the open source community. It did everything right, and I haven't bought a game. I probably would never have. It's cold. It's hard. It's probably flamebait. It's the truth.

    --

    My car gets 40 rods to the hogshead, and that's the way I likes it!

  17. What ended it for Loki by Natalie's+Hot+Grits · · Score: 5, Interesting

    What ended it for Loki Games? Well, I happen to know one company I can slap the blame on. nVidia.

    Why nVidia? well, its simple. when the tnt2 debutes, nVidia releases a statement that they are the only 3d video chip maker that is fully supporting Linux with Open Source Drivers. They were to release register specifications, and release a working, open source driver developed by nVidia and helped upon by a bunch of other interesting people. What happened to this ideal? They took it back of course, just as soon as 3dfx died and opensourced all their IP. When nVidia saw the monopoly knocking at their front door, they immediately withdrew their plan (this one year later) and decided to go closed source. you couldnt even use a custom kernel with the nvidia driver because it was entirely closed source binary only.

    Too bad for Loki, who just spent the last 6 months porting Quake3 to Linux, now they just found out that the only video card they can officially support with Xfree4 is the Voodoo3 and Matrox g400 (dog slow in linux).

    Add this to the fact that Quake3 for Linux came out on the SHELVES about a month after the windows version, and then, more expensive (by then, the windows version had been reduced in price by retailers, and the linux version could be downloaded off the internet, there was so little market for the linux version, they had to sell them at full price)

    Imagine that, Quake3 launch more costly to consumers, and later than everyone else, not to mention that the only video card that could run quake3 at the time was a tnt2 and Geforce1 at reasonable speeds, and didn't even have alpha quality Xfree4 or kernel drivers(required to use 3d direct rendering in Linux)

    Of course, nVidia released their closed source with open source wrapper later on that year, by then, it was too late. EVERY gaming migrant from windows switched back to windows specifically because of their video card's support (NVidia).

    If you want a finger to point, point it at nVidia. they should be brought up on charges of anti-trust IMO.

    Fuck you nvidia, I have nothing else to say to you. bitch. You ruined the only gaming potential Linux has ever had. If it wasn't for your delayed closed shitty alpha quality driver, Loki would have made a killing on Linux quake3. insted, only the newbies who bought the voodoo3 could play quake3, and so, only 10% of the potential market actually bought it. You had the only card that could handle quake3, and you lied on your promise to be the "leading 3d video card maker on the Linux platform"

    Have a nice day.

    --
    Two infinite things: your stupidity and mine. But I'm not sure about the latter. If my sig offends you, I'm sorry.
  18. Unless you are going to loki to buy games... by efuseekay · · Score: 4, Funny

    Stop /.-ing the site for people who are there to buy them!

    *rant over*

    --
    Mode (3) smart-aleck mode. Press * to return to main menu.
  19. Paypal Account? by fdiv(1,0) · · Score: 5, Insightful

    The linux community has rallied behind causes we felt were worth supporting in the past, however I cannot remember any instance in which the community has rallied behind a commercial venture before. Anyone interested in setting up a Paypal account for the purpose of helping out Loki? How much are linux games worth to you? Would you be willing to donate a few bucks to help keep Loki afloat? Consider what message this would send to Windows-only game developers...the linux community is not only wanting for games, but willing to support companies that will provide for them.
    Anyone with me?

    --
    --- "...And everybody died!!! Except for me, of course...you know why? Because I had my tray table up...and my seat ba
  20. Warez-like release? by aralin · · Score: 5, Informative

    Well, if they would sell warez-like release of their games, just downloadable files and pdf manuals or even without manuals or with just a stripped version, they could charge half the cost since all the money would go to the company and wouldn't be lost in the supply chain. And it would be very good solution for these types who say that the cost is "just too high" so they better download it from warez. I guess this could be good marketing move, no?

    --
    If programs would be read like poetry, most programmers would be Vogons.
  21. Slim chances of recovery by MSBob · · Score: 4, Insightful
    Filing for bankruptcy protection is not the same as being "out of business," but it's uncomfortably close.

    It's not over until the fat lady sings, of course, but I think I hear her sucking air into her lungs and clearing her throat. That fat lady is going to sing soon and when she does she's going to blow some eardrums. There are very few companies that survive the chapter 11 stage. Stop deluding yourselves guys.

    --
    Your pizza just the way you ought to have it.
  22. Re:Not a big surprise by stevens · · Score: 5, Interesting
    Frankly, most people would rather have stuff free than have to pay for it.

    Frankly, I don't encounter this attitude in the OSS community near me. We buy linux distributions; we spend our spare time promoting products we like (and also fit our software philosophy); we buy endless numbers of books.

    Most of the linux-oriented people I hang with bought one or two titles from Loki. I personally have two. I am not aware of a huge warez scene for Loki titles. It's just that there are so very few of us compared to Windows gamers. This will change eventually.

    But I'm sick and tired of hearing that Open Source enthusiasts will just not pay for things. Sure, I won't pay for something when there's a better alternative available. But that's simply not the case with Loki's stuff. I think they earned every penny with their attention to detail in porting and packaging (not to mention the SDL library).