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Last Updated: Thursday, 2 September, 2004, 16:18 GMT 17:18 UK
Games makers Acclaim ceases ops
Screenshot of Turok
Turok was the dinosaur-hunting hero
US video game makers Acclaim has filed for bankruptcy after struggling to keep up sales in an increasingly competitive games market for some time.

Acclaim said it was ceasing operations and liquidating itself through Chapter 7 bankruptcy proceedings.

Started in 1987, Acclaim was the first independent US firm to publish software for the Nintendo Entertainment System.

The company is best-known for its console, Nintendo GameBoy and PC titles, like Turok and Crazy Taxi.

It was one of the oldest game brands in the industry and was responsible for more controversial games like BMX XXX.

Human ads

In 2002, Acclaim hit the headlines when it offered gamers the chance to legally change their name to Turok, the title of their latest computer game at the time.

Screenshot of Mary-Kate & Ashley: Girls Night Out
The company faced legal action from the Olsen twins
More than 6,000 people responded to the marketing campaign that invited humans to become a "living billboard" for a year.

The company had also been hit with legal action from some of its licensees, including teenage actress twins Mary-Kate and Ashley Olsen, as well as biking star Dave Mirra.

Acclaim, which had sales of $142.7 million for the year ending 31 March, has 600 employees worldwide.

Its lawyer, Jeff Friedman, said a trustee had been found to sell its titles, including several games that were finished and ready to be released.

"(However) the games that are in the middle of development are more problematic because it is not clear that there will be money to finish those games," he said.

Last month, the company said it was in negotiations to replace its credit facility after an extension with its main lender, GMAC Commercial Finance LLC, ran out on 20 August.

Acclaim had said that if negotiations failed, it would be forced to seek bankruptcy protection.

It said it had between $10 million (5.6 million) and $50 million (28 million) in assets, and more than $100 million (56 million) in debt.


SEE ALSO:
Games industry faces shake-up
26 Aug 04  |  Technology
Nintendo 'fears for games industry'
25 May 04  |  Technology
Game firms urged to take risks
17 Jun 04  |  Technology
Gamers fight to be living billboards
17 Aug 02  |  Technology


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