Interplay Still Losing Money, Now to Lose Fallout MMOG As Well

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Yesterday, Interplay filed its annual report with the U.S. Securities and Exchange Commission. While Interplay has been nearly defunct for years, the company secured some cash by selling the Fallout franchise to Bethesda Softworks (ultimately resulting in Fallout 3). As part of that transaction, Interplay retained the right to make a massively multiplayer online game based on the Fallout franchise (presumably the project Interplay dubs "V13"). Unfortunately, for Interplay, it looks like they will lose the right to make V13, the company's only hope for salvation. Furthermore, Interplay's financial results were as awful as expected:
For its fiscal year ended December 31, 2008, Interplay reported a net loss of $493,000, compared to net income of $5.856 million in the previous year. That 2007 number includes the sale of Fallout to Bethesda Softworks.

When it comes down to Interplay's right to continue to make V13, the Fallout MMOG, Interplay licensed the right to make a Fallout MMOG from Bethesda Softworks on April 4, 2007 (when Interplay sold the Fallout franchise). According to the agreement, by April, 2009, Interplay has to have commenced development of the Fallout MMOG and raised substantial capital by now, to retain the right to continue making a Fallout MMOG. Interplay has not raised funds nor has it begun substantial development, so Bethesda Softworks is terminating the agreement (and is entitled to do so under the licensing agreement). Interplay "adamantly disputes these claims" despite having no money, and seems to be pinning its development hopes on a letter of intent to do something rather than by showing real evidence of work underway.

The company also noted that, "As of December 31, 2008, our cash balance was approximately $0 and our working capital deficit totaled approximately $2.4 million." In other words, Interplay has no money, and needs to find more money to continue operations. The company is relying on the Fallout MMOG and licensing old properties to continue operations. Its licensing efforts are near their limits, so Interplay needs the Fallout MMOG, and needs money to make that happen.

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This page contains a single entry by Editor published on April 16, 2009 8:09 AM.

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