Fallout Online in Dire Straits

Things are not looking good for fans of the upcoming FPS MMO Fallout Online.  According to CVG, developer Interplay is under financial distress and a bankruptcy filing could take its flagship MMO along with it.

In its annual report filing to the SEC, Interplay painted a grave situation pointing to poor cash flow and a growing deficit.

“As of December 31, 2010, our cash balance was approximately $3,000 and our working capital deficit totalled approximately $2,877,000,” it said.

“If we do not receive sufficient financing or sufficient funds from our operations we may (i) liquidate assets, (ii) seek or be forced into bankruptcy and/or (iii) continue operations, but incur material harm to our business, operations or financial condition.To improve cash flow, Interplay may cut back on operational costs and consolidate assets.

However, it is unclear from the SEC filing if this will be sufficient to offset the nearly $3M deficit.  To make matters worse, Interplay is still battling game publisher Bethesda in a long and costly legal case over licensing rights, and is likely one of the key reasons for slow production and release of Fallout Online.

With Interplay’s financial and legal troubles, gamers probably shouldn’t hold their breath that FO will be out anytime soon.