Visual Science Closes, Legal Action against VU Games being Considered

[fitbabits]

Thanks to GamesIndustry.biz (http://www.gamesindustry.biz) for the head's-up (http://www.gamesindustry.biz/content_page.php?aid=14561).

Following the announcement that Scottish developer Visual Science has gone into administration, MD Tim Christian has told GamesIndustry.biz that there are now plans to launch legal action against Vivendi.

"We had a major contract with Vivendi Universal Games which was terminated a couple of weeks ago, and we have been unable to find replacement work in that period," Christian said.

"Given that, and given that it looked increasingly unlikely that we'd be able to meet our liabilities, we've had to put the company into administration."

"What the administration process means is that we can seek protection from our creditors, and then we can use the cash that we have remaining to develop a legal fight against VUG because we believe that they have terminated the contract without grounds."
'Legal Action' is fast becoming the new lens flare of the games industry. Still doesn't excuse VU Games if they are in breach of contract, but the amount of legal cases in the videogame industry right now is mind boggling.

[Librum]

It's probably just a symptom of how big the gaming industry has gotten over the last decade. Threatened legal action between companies, employees, employers, suppliers and others are pretty much standard business practices these days.

VU Games likely felt they had the authority under the contract to terminate Visual Science for cause, and, unsurprisingly, Visual Science disagrees.

[Heretic Machine]

Isn't VU games in a lot of heat right now? They're going bankrupt, and can't meet the demands of their overstretched obligations. So much for being the next EA, eh?

[SuperMonkeyFighter2]

I doubt VU is in breach ... the publisher reserves the right to terminate any deal as it suits them.

[Lexicon]

Isn't VU games in a lot of heat right now? They're going bankrupt, and can't meet the demands of their overstretched obligations. So much for being the next EA, eh?

I think they're doing allright right now mainly due to WOW I'm sure.

January 30, 2006 - As part of its fiscal 2005 financials, Vivendi Universal today reported year-end earnings for publisher VU Games. The home of F.E.A.R. and World of Warcraft saw full-year revenues of 641 million euros ($774.8 million), up a sharp 34.9% from 2004. The company thanks the ongoing success of Blizzard's MMORPG, as well as strong sales by 50 Cent: Bulletproof, for the healthy numbers.

[fitbabits]

It's probably just a symptom of how big the gaming industry has gotten over the last decade. Threatened legal action between companies, employees, employers, suppliers and others are pretty much standard business practices these days.

VU Games likely felt they had the authority under the contract to terminate Visual Science for cause, and, unsurprisingly, Visual Science disagrees.
Yep, I pretty much agree with you here. It's sad, though.

[Lord Dongkey]

... as well as strong sales by 50 Cent: Bulletproof, for the healthy numbers.

Hell.

In a handbasket.

[MosBen]

I'd think that while the industry's size is part of the rise in legal action, I'd also think that the down swing in profits has a lot to do with it too.

[slimfatbaby]

The people at Vivendi are the ones that just screwed High Voltage Software a month ago on a new Larry game. High Voltage is hurting big time now after having to layoff a significant portion of their workforce.

[Evil Avatar]

I doubt VU is in breach ... the publisher reserves the right to terminate any deal as it suits them.

This gets my vote as well, I'm guessing that they wouldn't terminate any agreement unless they were sure that they had the rights to do so.

This is exactly what I was talking about in the Vampire Bloodlines thread - you don't run a company based on the idea of developing a single product. If you do, you are just headed for disaster eventually.

[Sensei-X]

I hate Vivendi with a passion but, "We had a major contract with Vivendi Universal Games which was terminated a couple of weeks ago, and we have been unable to find replacement work in that period," Couple of weeks? So 2 weeks with no new contract = bankrupt? Huh? Sounds like someone was taking company cash and hiding it off-shore for that Carribean vacation they always wanted.

[Eon]

Many developers live hand to mouth - especially those who are in such a position that they are forced to sign a deal with Vivendi games.

I was at a small startup Devco who signed with Vivendi and went through exactly the same situation, and I've commented on three or four similar situations since.

Bottom line, I wouldn't sign with Vivendi - they aren't reliable in my experience.