Slashdot Mirror
Acclaim Entertainment Files for Bankruptcy
Prof. Jonathan Ezor, Touro Law Center writes "According to this story in Long Island Business News, Acclaim Entertainment has filed for Chapter 7 bankruptcy in the Eastern District of New York bankruptcy court, meaning it will liquidate its assets and shut down. The story states in part, 'Computer game maker Acclaim Entertainment (Nasdaq: AKLM) has filed for voluntary Chapter 7 bankruptcy, which would result in the liquidation of the company's assets. The company filed papers in U.S. Bankruptcy Court in Central Islip that estimated its debts at more than $100 million and its assets at $10 million to $50 million. The filing said it had more than 200 creditors.' Game Over."
With recent titles such as American Pro Trucker and Mary Kate and Ashley: Sweet 16, it's almost hard to believe they were losing money.
On July 9th of last year, Penny Arcade predicted this, perhaps in not as many words. And, they had the good class to make a cat catapult while they were at it. Is there anything Tycho and Gabe can't do?
You like splinters in your crotch? -Jon Caldara
It's a shame that the spelling so bad here on slashdot that people are actually missing the joke and are giving the guy advice on how to proceed.
Geesh. What a bunch of maroons.
*everything* is Orwellian to cats.
Is it just me or are game publishers dying off? Sierra, Interplay and now Acclaim are all gone, or as good as dead. Moreover, IMHO we're seeing less and less new titles, and more sequels, rip-offs and shovelware.
A long time ago I read something to the effect that we'll see the death of the game industry (computer and console) if Moore's law slows down/stops/ceases to aplly to gaming. If new technology can't improve on last years games by a significant margin, then the industry's business model is in _real_ trouble (which might explain the abundance of sequels).
I know that, other than Doom 3 and Thief 3, it's been a long time since I bought a new release (no, I don't pirate). The last few original games I've liked had gameplay that was refined, but not really _new_ as such. Dungeon Siege, for example, was basically Diable meets Icewind Dale; it was good and well executed, but not really a new idea.
I'm not being a nostalgic geezer here, I really think we could be in trouble. Anyone care to comment?
Erotic is when you use a feather. Exotic is when you use the whole chicken.
Bankruptcy Wins...
FATALITY
Acclaim has always been on this cycle of boom and bust. They had NBA Jam and Mortal Kombat (neither of which were original titles - they were ports). Then things started to get a bit tight around the transition time between genesis/snes and saturn/ps1 (some baaad games came out for these - some, thankfully, never saw the light of day because they were sooo bad). Then came Turok. This got them going again. Did they rest on their laurels? Nah! They just started spending money like there was no tomorrow.
It all started to go really downhill with pretty much every product after N64. It's taken several years for them to die but they lost the momentum a *long* time ago. A string of very poor quality, dubiously marketed games got them in this position.
Is Acclaim management all to blame? Well, frankly, yes. Not just those in Glencove but all of the management. But the studio management teams had their hands tied by Glen Cove.
Have you noticed that the only part of the management team that has survived any appreciable period of time is Fishbach, Scorpowski and Cousins?
All the rest were fired or jumped ship.
They went through many CFO's, CTO's, COO's (and whatever made up job titles they came up with) within a very short period of time. The staffing turnover rate in glen cove was amazing.
I recall a meeting once where we were told, "if we don't pull out of this, we're going to hit a mountain". Today, they hit the mountain and slid down it in a big heap.
My thoughts go out to the employees who found out they were laid off when they couldn't get in to their offices. The management team never even had the decency to tell them they were no longer employed.
The order that creditors get paid in is spelled out in the bankruptcy laws, and the bankruptcy court essentially settles any ties. It's not completely set in stone (if all the creditors get together and agree to a particular division, it should be approved), but there is a broad outline. IIRC, the rough order (in my state, at least) is:
#1 Bankruptcy Court costs
#2 Payroll Taxes
#3 Employees back pay
#4 Secured creditors (ie, they got collateral for their loans)
#5 Unsecured creditors
And of course, if more than one lender has the same collateral, the order that the liens were issued in makes a difference. I could be wrong about Employees being so favorably treated, too. Heck, I could be wrong about all of that, but I think it's fairly close.
He decided to just watch the government, and kind of scale it down to size, and run his life that way. --Laurie Anderson
I submitted this story to Slashdot on Friday and on Tuesday, first just with the SPOnG.com story, then again on Tuesday with other sources.
The SPOnG story has feedback directly from Acclaim employees in the UK. Their forum on the story has a comment from an Acclaim employee that their pension contributions have not been payed since April!
Honestly, do the editors actually RTFA, or do they just see SPOnG and bin it? This is the 5th time I've submitted stories from SPOnG, just to have them appear on Slashdot days later, attributed to someone else, usually GamesIndustry.biz, who re-write SPOnG stories for their own front page.
What is up with this?
-- I like the cut of your thinking, young man. - me.