Acclaim loses Turok and All-Star Baseball franchises

Acclaim has been struggling to stay afloat in recent months, having endured a net loss of $56.4 million over the last financial year. The publisher has sold off many of its assets, and is currently seeking assistance from new investors.

Acclaim’s annual financial report stated that Acclaim had “entered into a letter of intent with a proposed new lender for a $30 million asset-based credit facility, with an equity component…”, so there could well be a clear escape route in the near future.

However, in the meantime and before Acclaim can access any such possible rescue funds, it has been forced to keep expenditure at a minimum and resolve pressing debts. Due to the company’s inability to meet royalty payments for its All-Star Baseball and Turok franchises, it has been forced to surrender control of both. Whilst the loss of Turok could be considered a blessing in disguise, losing the profitable Major League licensed baseball game will be a damaging blow to Acclaim’s revenues. The opportunity to claw back some dignity and profit has slipped further into the distance, as potential hits such as Combat Elite: WW2 paratroopers have had to be delayed indefinitely.

The news compounds the loss of the seminal Burnout series, bagged by Electronic Arts for at least two new incarnations, and the general fragmentation of the firm’s portfolio – all due to a spiralling financial situation. Endless rounds of management reshuffling, including the rehiring of Mike Sherlock from Sega Europe and Larry Sparks from then-Infogrames seem to have done little to ease the situation.

Expect more Acclaim news as and when the publisher announces how it intends to poise itself for recovery.