Gameplay sees endgame

June 8, 2001
Web posted at: 1026 GMT

LONDON (CNN) -- Struggling UK online games company Gameplay said on Friday it was laying off most of its remaining staff and had sold its Spanish business.

The company's shares, which floated at 135 pence in 1999 and were as high as 1,080 pence at the height of the Internet boom last year, fell nearly 19 percent to just 3.25 pence on the news.

Gameplay (GAM) announced it had disposed of its Spanish boxed games unit and online gaming business Centromail for £3.4 million ($4.7 million) to Electronics Boutique (EBQ), the leading UK computer games retailer.

After settling liabilities of £2 million, Gameplay should receive net proceeds of £1.4 million. The sale, following those of UK and Nordic assets for just £1 and one Swedish kroner respectively to their management teams, completes Gameplay's exit from boxed games activities.

The company said in a statement that most of its staff, which numbered around 80, were now being made redundant, but a small central team was staying on while it considered offers for the remaining elements of the business.

"There can be no certainty that any of these discussions will result in further disposals," it warned.

Gameplay's mail-order business of selling games over the Web and interactive television was supposed to be a prelude to an era where players would pay for and download the games online or play them in real time over the Internet.

It acquired BT's Wireplay online gaming business and expanded across Europe. But when market conditions turned against it, Gameplay rapidly ran out of cash.

Its pretax losses were £56 million in  the six months to the end of January and, over nine months, the company burned £80 million in cash.

		Want the full story? Search for free Company Info...
		Enter Company Name:-

Gameplay

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.