Bye Bye Acclaim
by Robert Brim · in General Discussion · 09/01/2004 (9:22 pm) · 8 replies
The company will now cease operating completely, and liquidate its assets in attempts to pay off the debt.
http://www.gamasutra.com/php-bin/news_index.php?story=4235
Basically, Acclaim is in way over its head, couldnt get a loan and is now bankrupt. My question is, how do you go from being successful to have over 100 million in debt?
http://www.gamasutra.com/php-bin/news_index.php?story=4235
Basically, Acclaim is in way over its head, couldnt get a loan and is now bankrupt. My question is, how do you go from being successful to have over 100 million in debt?
#3
There are a couple of simple ways to achieve this...
1. Gain success before you gain common sense.
2. Assume because you have one hit that all your games will be hits.
3. When something fails, throw even more money at it.
4. After you've spent millions on something, scrap it and start over.
5. And of course, definately spend like there is no tommorow.
09/01/2004 (10:20 pm)
Quote:how do you go from being successful to have over 100 million in debt?
There are a couple of simple ways to achieve this...
1. Gain success before you gain common sense.
2. Assume because you have one hit that all your games will be hits.
3. When something fails, throw even more money at it.
4. After you've spent millions on something, scrap it and start over.
5. And of course, definately spend like there is no tommorow.
#4
09/01/2004 (11:08 pm)
6. Pay millions to buy popular movie, sport, etc. licenses and then make low quality games off of them.
#5
Pity W3D was being published by them... ouch!
09/02/2004 (1:15 am)
Yep, #6 is definitely the acclaim "formula for success".Pity W3D was being published by them... ouch!
#7
And it's an interesting lesson to us indies about the importance of KEEPING OUR IP (Intellectual Property) RIGHTS!
Acclaim claimed (and not incorrectly) that they pretty much "made" the WWF. When they originally obtained the license for WWF wrestling videogames, they got it at a bargain basement price for many, many years. The success of the videogames contributed significantly to the popularity of the WWF. Which fed the popularity of the videogames, etc. etc. Both Acclaim and the WWF made a LOT of money from that partnership.
Many years later, the time cam up for the license to be renewed. The WWF, a MUCH bigger and more popular entertainment medium, jacked up the price by a HUGE amount. Because they COULD. There were a lot of publishers that would be willing to pay through the nose for the lucrative license if Acclaim balked. And Acclaim DID balk. Their attitude was, "We made you, we can make someone else." Acclaim walked away from the deal, and signed another no-name license with the relatively unknown "ECW," hoping to repeat their success.
They didn't. The ECW folded a couple of years later (around the time the WWF and WCW merged), and the ECW-branded games didn't enjoy nearly the success of the older titles. Because the customer loyalty followed the brand, not the publisher / developer. And by this point, there was VERY significant competition.
Here's something else that I'm more on a personal crusade about and have commented on (albeit indirectly) in a couple of interviews. I could NEVER PLAY the Wrestling game I was working on. A lot of programmers were in that situation. The designers knew what they were doing, and could play just fine... but I had the toughest time playing the game. That kind of game may not be my cup of tea, but I enjoy a good fighting game and it's not like I've never held a controller before.
One of the problems with creating sequels and clones (and very similar products) is that designers try hard to appeal to and challenge the existing fan-base. The problem is, the harder you try and do this, the more you risk alienating new players. With the exception of non-standalone expansions, you NEVER EVER want to create a game that caters to your long-term customers at the EXPENSE of a new audience. That way leads only to negative growth with a diminishing audience.
So there's two mistakes, right there.
09/02/2004 (8:52 am)
Well, here's an interesting little side-note.And it's an interesting lesson to us indies about the importance of KEEPING OUR IP (Intellectual Property) RIGHTS!
Acclaim claimed (and not incorrectly) that they pretty much "made" the WWF. When they originally obtained the license for WWF wrestling videogames, they got it at a bargain basement price for many, many years. The success of the videogames contributed significantly to the popularity of the WWF. Which fed the popularity of the videogames, etc. etc. Both Acclaim and the WWF made a LOT of money from that partnership.
Many years later, the time cam up for the license to be renewed. The WWF, a MUCH bigger and more popular entertainment medium, jacked up the price by a HUGE amount. Because they COULD. There were a lot of publishers that would be willing to pay through the nose for the lucrative license if Acclaim balked. And Acclaim DID balk. Their attitude was, "We made you, we can make someone else." Acclaim walked away from the deal, and signed another no-name license with the relatively unknown "ECW," hoping to repeat their success.
They didn't. The ECW folded a couple of years later (around the time the WWF and WCW merged), and the ECW-branded games didn't enjoy nearly the success of the older titles. Because the customer loyalty followed the brand, not the publisher / developer. And by this point, there was VERY significant competition.
Here's something else that I'm more on a personal crusade about and have commented on (albeit indirectly) in a couple of interviews. I could NEVER PLAY the Wrestling game I was working on. A lot of programmers were in that situation. The designers knew what they were doing, and could play just fine... but I had the toughest time playing the game. That kind of game may not be my cup of tea, but I enjoy a good fighting game and it's not like I've never held a controller before.
One of the problems with creating sequels and clones (and very similar products) is that designers try hard to appeal to and challenge the existing fan-base. The problem is, the harder you try and do this, the more you risk alienating new players. With the exception of non-standalone expansions, you NEVER EVER want to create a game that caters to your long-term customers at the EXPENSE of a new audience. That way leads only to negative growth with a diminishing audience.
So there's two mistakes, right there.
#8
09/02/2004 (9:38 am)
Yeah, it's kinda sad. The business isn't the same as it was when they started in the NES days. A friend of mine was working for them for a long time. I was actually trying to get a job there but I couldn't get much help (strange situation) but now I'm glad I didn't begin working at any game studio and just went independent. We're getting noticed and we're building a brand. In 5 years we'll have a good steady business that can hopefully be run responsibly for life. 
Torque Owner Nauris Krauze