Sections

Are you one of the best games employers in the US?

Apply Today

Intellivision Entertainment hasn't generated revenue since launch

The company may only be able to operate until July 2022 if it doesn't succeed in raising more funds

Intellivision Entertainment has made no revenue since its inception in 2018 and in its current state may only be able to operate until July 2022.

That's according to a SEC filing shared on the Amico maker's website earlier this week, as it's looking to raise $5 million to pursue its efforts to release the retro console.

The SEC filing goes through the risks associated with investing in Intellivision Entertainment. While some of the risk factors would be expected, such as the fact that "an investment in the company involves a high degree of risk and should be considered by those who can afford the loss of their entire investment," the document provides an interesting insight into the company's business.

For instance, Intellivision pointed out that it's possible that it "may never have an operational product or service."

"It is possible that there may never be a fully operational Intellivision Amico," the document read. "It is possible that the failure to release the product is the result of a change in business model upon [the] company's making a determination that the business model, or some other factor, will not be in the best interest of [the] company and its stockholders/members/creditors."

It also addressed that Intellivision has "a limited history upon which an evaluation of its performance and future prospects can be made," as it has not generated profit at this stage and has "sustained losses since inception."

Later in the document, Intellivision disclosed having "significant debt," including an "aggregate of $3.1 million in outstanding loans" from its board members.

If only the minimum of $10,000 is raised from its campaign, the company would "only have operating cash for one to two months," it added. If it did raise $5 million, that would allow Intellivision to keep going for "approximately seven to nine months."

It also mentioned that Intellivision has spent $1.35 million in "pre-payments for electronic components to Ark Electronics USA" but due to a contract dispute, "the disposition of those funds are potentially at risk."

The Amico was announced in October 2018 and initially due to be released in October 2020. It's been pushed back several times, with currently no release date on the horizon.

Earlier this week, Intellivision Entertainment's chief revenue officer Phil Adam was appointed as CEO, replacing Tommy Tallarico who will remain at the company as board member and president.

The firm also recently abandoned its prior commitment to cap game prices for the Amico at $10, with Adam suggesting the hardware itself may receive a price hike as well.

Are you one of the best games employers in the US?

Apply Today

More stories

Phil Adam replaces Tommy Tallarico as CEO of Intellivision

Tallarico will remain at the Amico maker as board member and president

By Marie Dealessandri

Intellivision Amico delayed again

The retro console is now due to launch "by the end of the year"

By Marie Dealessandri

Latest comments (1)

Ron Dippold Software/Firmware Engineer A month ago
Possibly the most damning thing about this is that they suggest they may now sell some games as NFTs. I do have to admire that they at least have enough clarity to realize that the system as initially designed will never be a viable commercial product. But pivoting to being scammers selling speculative jpegs of games that may or may not ever be implemented (ala StarCit ships) is the strategy of someone who will do literally anything ('feed live puppies into the Amico(TM)'s AmiShredder(TM) to collect AmiPoints(TM) for premium gatcha!' ) just to keep collecting a paycheck.

It's dead. This is something nobody wants or needs at this point, especially given the market changes since it was announced. There are people who want Intellivision's old games (I do!), but there are better ways to provide that. The only question at this point is how embarrassingly you go down and how much more investor money you burn.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.