The home computer industry was booming throughout the s and one of the companies that benefited during the period was Commodore International. Commodore International was started in by Auschwitz survivor Jack Tramiel. Formed as a typewriter repair company, Commodore International evolved to create Home Computers in Commodore International saw much success in when it released the Commodore 64 home computer.
The system currently holds the world record for being the best-selling single computer model of all time, which is pretty impressive. Unfortunately, the Commodore 64 was the most success that Commodore International saw. Commodore International started treating its dealers and customers terribly, which was the terrible decision that killed them. Commodore eventually filed for bankruptcy in In , SNK released the most successful of the Neo Geo lineup, the original Neo Geo—an arcade system with a home based console version.
Despite being a stronger system then its competitors, its price tag was too high and the timing wasn't right. SNK was doing terribly by and they ended up filing for bankruptcy in due to lack of sales for its systems. Sega was once a giant in the video game market. Founded as early as as an arcade game company and supplier, Sega has evolved multiple times throughout its gaming career.
It went from arcade machine creator to arcade game maker, to making home consoles and then only software. The company saw a lot of success in its heyday. During the late 70s, the golden age of arcade games, Sega prospered with titles like Zaxxon , SubRoc 3D , and Astron Belt —the first laserdisc game.
Sega later crushed it in the home system market when the Sega Genesis came out in along with their mascot, Sonic the Hedgehog, and his famous franchise. Due to lack of console sales, as those two concoles came out with some consoles which were somewhat ahead of their time, Sega suffered financial trouble from to due to poor console sales.
The financial struggles would lead to Sega's death,until they switched to software only, successfully reviving themselves from nearly permanent failure. Silicon Knights saw success early and caved due to horrible circumstances.
In , Silicon Knights dropped Too Human , the game that would define their ending. The Xbox exclusive blended Norse mythology with science fiction. The game garnered mediocre reviews and terrible sales. This choice would spiral into their death. Epic ironically won the lawsuit and Silicon Knights had to pay millions, resulting in its fold. The company released plenty of Star Wars and Indiana Jones titles for many great consoles. LucasArts would suffer from a death-inducing lack of direction and eventually in was purchased by Disney along with Lucasfilm.
Disney had its way with the gaming developer, laying off plenty of staff and canceling both Star Wars , as well as Star Wars: First Assault , two titles close to completion. Believe it or not, the video game studio founded by the creators of Diablo died.
Flagship Studios was created by a group of development personnel—the team staff had experience developing huge titles like Diablo , Warcraft , and Starcraft.
It was a dream team, but Hellgate: London resulted in their death. The hack and slasher was set in a post-apocalyptic London with demonic enemies everywhere. The game sold about half a million copies with average reviews and it had plenty of flaws. Those who purchased Hellgate: London noticed the freemium model sucked. These problems lead to the companies end. Without continuous sales, Flagship Studios folded in , only five years after they started up. Critics regarded it as one of the best studios of the 90s.
Tomb Raider would go on to become a legendary game for the PlayStation and continue to become an acclaimed game franchise. Core Design also struggled with internal conflicts.
Core Design split into two teams: a core group that created Tomb Raider and another who created lesser known games, which would lead to the company's passing.
The conflict between the sides lead to an acquisition and eventual closure of the studio. Lionhead Studios was another promising gaming developer that died due to poor sales. Peter Molyneux, a gaming industry veteran, established the company back in Lionhead Studios is known for the development of the Xbox exclusive Fable series, with Fable II being the most famous of the franchise. So how could a company like this fail? Lionhead was acquired by Microsoft in , leading to the successful Fable II.
However, the acquisition led to the death of Lionhead. Microsoft closed the studio before it could release another Fable title, Fable Legends in Tiger Telematics made it to the top of the list because of its bizarre story.
The company is most known for releasing the worst selling console , the Gizmondo. This Swedish electronics company started in and it was a merger between a Swedish electronics distributor and, oddly enough, a carpet retailer based in FL. The company made the death-inducing mistake of hiring Stefan Erikkson shortly after.
Tiger Telematics released the Gizmondo and spent absurd amounts of money on marketing it before making a profit. The company threw lavish parties and sponsored events; this would be one of their biggest mistakes.
The handheld Gizmondo sold less than 25, units, the worst in gaming history. Due to their insane spending, the company was unable to pay off the millions of dollars they spent, and Tiger Telematics went bankrupt. Stefan Erikkson was soon revealed to be head of a Swedish mafia group with many charges against him. Erikkson wrecked his Ferrari a month after the bankruptcy and got arrested for the wreck and his crimes. Tiger Telematics' decision to hire Erikkson was what destroyed the company.
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