 Logoc. 1991–2000 | |
| Company type | Private |
|---|---|
| Industry | Video games |
| Founded | October 1983; 41 years ago (1983-10) inNorthbrook, Illinois, US |
| Founder | Roger Buoy |
| Defunct | September 2011; 13 years ago (2011-09) |
| Fate | judicial liquidation; overseas subsidiaries continue to operate independently |
| Headquarters | , France |
| Parent |
|
Mindscape was avideo game developer andpublisher. The company was founded by Roger Buoy in October 1983 inNorthbrook, Illinois, originally as part of SFN Companies until amanagement buyout was completed in 1987. Mindscapewent public in 1988 and was acquired in 1990 byThe Software Toolworks, eyeing Mindscape'sNintendo license. When Toolworks was acquired byPearson plc in 1994, Mindscape became the primary identity for the development group. Mindscape was then sold toThe Learning Company in 1998 and bought out by Jean-Pierre Nordman in 2001, becoming headquartered inBoulogne-Billancourt, France. Following the poor performance of its products, Mindscape exited thevideo game industry in August 2011 and soon ceased operations after filing for liquidation. However, its Dutch and Australian-based subsidiaries, Mindscape B.V. and Mindscape Asia Pacific Pty, Ltd., continue to operate as independent publishers and distributors.
Notable titles released by Mindscape include theMacVenture series,Balance of Power,Moonstone: A Hard Days Knight,Legend,Warhammer: Shadow of the Horned Rat,Warhammer: Dark Omen andLego Island.
Mindscape was founded in October 1983 as a wholly ownedsubsidiary of the holding company SFN Companies.[1][2] Mindscape's founder, the Australian entrepreneur Roger Buoy, had previously been a computer analyst forRolls-Royce and later worked for the softwaredivision ofScholastic Inc. before being hired by SFN.[3][2] Buoy acted as thepresident andchief executive officer (CEO) of Mindscape, and the company released its first product in April 1984.[2] Early games includeDéjà Vu,Balance of Power, andSub Mission: A Matter of Life and Death.[3][4][5] In its early years, Mindscape lost aboutUS$6 million annually.[6]
In July 1986, Mindscape acquired the assets of Scarborough Systems, a software company fromTarrytown, New York.[7] Scarborough Systems continued its operations throughLifeboat Associates, a subsidiary that was not acquired by Mindscape.[8] In October, SFN announced that it would be selling or closing large parts of its business, including plans to liquidate Mindscape.[9] On December 31, Mindscape bought the assets ofRoslyn, New York-based company Learning Well.[7] Since Mindscape was not liquidated by the end of 1986, it was assigned to SFN Partners L.P., alimited partnership company.[7] A new corporation set up by Buoy and SFN's former president andchairman, John Purcell, subsequently acquired Mindscape from SFN Partners on January 16, 1987, for$3 million.[7][10] Buoy retained his positions in the company, while Purcell became its chairman.[7] Around this time, Mindscape had 74 employees.[7]
With sales of$12 million, Mindscape was profitable for the first time in the fourth quarter of 1986; it started publishing black numbers by 1987.[7][10] In early 1987, Mindscape introduced the Thunder Mountain label to produce software at a lower price, withRambo: First Blood Part II being its first release.[11] In March 1987, Mindscape acquired the software division ofHolt, Rinehart and Winston formerly known as CBS Interactive Learning, with all operations transferred to Mindscape'sNorthbrook, Illinois, headquarters.[1] By June 1988, Mindscape filed with theU.S. Securities and Exchange Commission to prepare aninitial public offering (IPO) and become apublic company.[10] The move aimed at raising$9.6 million through sale of stock to reduce bank loan debts of$9.8 million.[10] The IPO was completed later that month, with the company beginning tradingover-the-counter, and the first shares were issued by July.[12][13] Bob Ingersoll and Dennis O'Malley were appointedvice president (VP) of marketing and VP of sales, respectively, in May 1987.[14] In November, Mindscape signed a lease of 21,000 square feet (2,000 m2) of office space inWheeling, Illinois, for$236,000.[15] Robert A. Drell, formerly of Dresher Inc., became VP of finance and chief financial officer in October 1988.[16]
In December 1989, the video game companyThe Software Toolworks reached an agreement to acquire Mindscape, exchanging every Mindscape share for 0.4375 shares in newly issued Toolworkscommon stock.[17] The deal was completed on March 13, 1990, and valued at$21.2 million.[18][19] Mindscape had been one of the approximately forty companies licensed to develop forNintendo video game platforms, which was a major driver of the acquisition.[18][19][20] The two companies merged, and Buoy joinedLes Crane on Toolworks'sboard of directors.[21] Following the acquisition, Mindscape became Toolworks's division working exclusively on games for Nintendo platforms, which sharply increased Toolworks's earnings.[18][19][22] Subsequently, in March 1994,Pearson plc agreed to acquire Toolworks for$462 million, with the deal closing on May 12, 1994.[23][24]
Pearson was criticized for overpaying in the acquisition, and the acquired company lost$69 million within its first few years under the new ownership.[25][26] By November 1994, the Toolworks name was discontinued in favor of the Mindscape brand.[27] The same year, Mindscape acquired the video game developerStrategic Simulations.[28] In September 1995, it acquired Micrologic Software ofEmeryville, California, to undisclosed terms.[29] In January 1996, John F. Moore became CEO after leaving the same position atWestern Publishing.[30] In November, Mindscape laid off twelve developed staff as acost reduction measure.[31] In 1997, Mindscape acquired software company Multimedia Design.[32] In 1997, the final year under Pearson, Mindscape became profitable again, earning$2.7 million.[33] One day prior to the release ofLego Island that year, Mindscape fired all of the development team which worked on the game to avoid paying them any bonuses.[34]
Pearson proceeded to sell Mindscape toThe Learning Company (TLC) in March 1998 for$150 million in cash and stock.[35] A waiting period was temporarily imposed by theFederal Trade Commission and subsequently terminated the same month.[36] TLC expected that its stocks would rise$0.05 per share as a result of the acquisition, while Pearson lost around$347 million.[33][37] Later that year, when TLC integrated itsBroderbund division, Mindscape took over Broderbund's productivity, reference and entertainment brands.[38] The company's Mindscape unit would acquirePetz developerPF.Magic in 1998.[39] TLC would be eventually acquired byMattel in May 1999 and became a subsidiary of the company'sMattel Media division, later renamedMattel Interactive.[40] By then, Mattel occasionally used the Mindscape name for publishing.
TLC and Mattel Interactive's gaming assets were acquired byGores Technology Group in 2000 and its game brands were reformed under a new entity, Game Studios, in January 2001.[41]
In October 2001, formerTLC-Edusoft executive Jean-Pierre Nordman purchased The Learning Company's international assets from Gores and reconciled them underMindscape SA, a new company formed by Nordman located inBoulogne-Billancourt, a suburb ofParis, France with Nordman assuming a managerial role.[42][3][43] The new Mindscape continued the work on the publication and distribution of video games and software, mostly focusing towards the family and educational markets.
In November 2002, the company purchased the assets of bankrupt software publisher Montparnasse Multimedia.[44]
The UK division signed many licensing deals throughout the next few years, including one withAtari andHIT Entertainment to re-release the former'sThomas & Friends titles in July 2005, including a contract to produce two new titles;[45] and a budget reissue deal withFocus Multimedia in June 2006.[46]
In October 2005, Mindscape purchased French video game developer and publisherCoktel Vision fromVivendi Universal Games. The company absorbed the studio into its operations, including its remaining eleven employees.[47][48]
The company saw major expansion in 2009. On 20 October, they purchased the company Violet out of liquidation and took over production of theirNabaztag smart device range.[49], announcing a new a third generation Nabaztag, called "Karotz" in October 2010.[50] In November, the company opened up an internal development studio, Punchers Impact, inParis to develop multi-platformdigital download games.[51] The company developed two games:Crasher, aracing game, andU-Sing, amusic game. By December 2009, Thierry Bensoussan had become themanaging director for Mindscape.[51]
In September 2010, Punchers Impact's studio managers, Guillaume Descamps and Jérôme Amouyal, left the studio to found Birdies Road.[52]
On June 23, 2011, Mindscape was placed intoinsolvency after failing to reach a deal with its lawyers and banks to pay off its debts. The company announced that they would begin a restructuring process.[53] This followed the unsuccessful sales ofCrasher, and the high music licensing costs forU-Sing affecting the profits the game would end up getting, despite it selling well.[54][55] On August 10, Mindscape announced its exit from thevideo game industry by closing Punchers Impact and laying off its forty employees.[56] On 24 August, the Nanterre Commercial Court converted Mindscape's insolvency status intojudicial liquidation.[57] In November, Aldebaran Robotics, the makers of theNao robot range, acquired Mindscape's robotic assets.[58]
The company's regional subsidiaries, including Mindscape Asia Pacific in Australia, which was sold to private investors in October 2010[59] and Mindscape B.V., were unaffected by the company's insolvency and continue to operate.
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