In 2003, the company filed for Chapter 11 bankruptcy, and the company's game brands and other intellectual properties were sold to rivals such as Namco, Ubisoft, Microsoft, Crave, and also to founder Trip Hawkins.

Console Developer

When the company was first founded, its original objective was to create a next-generation, CD-based video game system that would be manufactured by various partners and licensees; 3DO would collect a royalty on each console sold and on each game manufactured. To game publishers, the low $3 royalty rate per game was a much better deal than the higher royalties paid to Sega and Nintendo when making games for those consoles.

Unfortunately the 3DO console itself was highly priced and the quality of 3DO games was generally perceived as low. In 1996, The 3DO Company sold its next generation console, codenamed M2 to Matsushita and decided to concentrate on developing and publishing games.

Related Articles

• The 3DO Console
• 3DO as a Games Developer and Publisher

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