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Interplay/Fallout Online Woes

[Jun 01, 2011, 1:09 pm ET] - Share - Viewing Comments

A new SEC filing from Interplay indicates the company's financial woes continue, according to Gamasutra, and their continued operations are in jeopardy without an infusion of new capital soon. This threatens development of Fallout Online, the MMORPG at the center of an ongoing legal battle with Bethesda Softworks, as word is these money troubles may force them to cut their staff, which currently only consists of 11 employees (seven of whom are developers), or sell off further assets. Word is Interplay was down to $3,000.00 in cash on hand by the end of last year, compared with accumulated operating deficits of over $2.8 million, which includes unpaid compensation to the board of directors as well as back taxes and penalties. "We currently have some obligations that we are unable to meet without generating additional income or raising additional capital," the company warned stockholders. "If we cannot generate additional income or raise additional capital in the near future, we may become insolvent and/or be made bankrupt and/or may become illiquid or worthless."

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24.

Re: Interplay/Fallout Online Woes

Jun 2, 2011, 11:58

Dev

Warskull wrote on Jun 1, 2011, 15:48: At the same time Bethesda didn't want to pay for the rights to an MMO. We all know Fallout is an extremely valuable IP and they passed on the MMO rights because they were being cheap. Don't think that passing on a $50 million untested MMORPG IP was being cheap. It was being smart. At the time, I think none of the fallout games had even broken the 500k mark. Granted the PC market as a whole was smaller then and that doesn't count the console market, but still it wasn't a guaranteed super hit success or anything. Interplay said "less than $6 mil for everything but MMO, and $50 mil if you want the MMO rights". The smart move was the $5.75 mil. Plus, remember that Interplay was so desperate for even that much cash, they agreed to revert the MMO rights back to bethesda if interplay didn't get significant progress and funding by a deadline (which they obviously didn't succeed in). Also recall that the agreement gave Beth 12% royalties from Interplay doing an MMO. So beth would have been happy even if Interplay DID succeed with the MMO. Beth would have been getting money with no work. Instead Interplay essentially sat on IP and did nothing with it.

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