Posted recently at Fatbabies is a alarming report noting that Acclaim may be in danger of going under. In an excerpt from a financial analysis of the company by KPMG, comes this shocking observation:

”As discussed in Note 1A to the consolidated financial statements, the Company's significant loss from operations in fiscal 2000 and its working capital and stockholders' deficiencies at August 31, 2000 raise substantial doubt about its ability to continue as a going concern.”

Ouch! For the full report & analysis, hit the link at the top and scroll down. Overall, it doesn’t sound like the company has been too profitable lately. Maybe many of you say “Ack-lame” deserve it, but they’ve produced some pretty good stuff over the years (Turok, All Star Baseball) and have been one the biggest 3rd party supporters for N64.

Of course, financial problems aren’t new to the company. Acclaim was in a similar predicament years ago, before/during the launch of N64. The original Turok the Dinosaur Hunter helped pull the company from the financial brink. Currently, Acclaim has projects underway for PS2, and allegedly are planning to support the GBA/GC hardware. How this will be affected by the companies financial situation is unknown at this point.