Intellivision: Amico manufacturer dismisses staff – GamesWirtschaft.de

The situation at the US console manufacturer Intellivision is obviously dramatic: CEO Phil Adam announces a change in strategy for Amico sales.

Intellivision CEO Phil Adam informed pre-orderers and investors about the current status quo by email. Adam only took over the task in February 2022 from Tommy Tallarico, who had resigned from the chief post.

Intellivision develops and markets the Amico game console, which is aimed explicitly at families. The delivery was already planned for December 2020, but had to be postponed several times. The console, including two controllers and six pre-installed games, can still be pre-ordered for around €280, including at Amazon*. As of October 2021, the company has already pre-sold Amico game packs.

The new CEO admits that he had to make some tough decisions immediately after taking office. The crowdfunding campaign at StartEngine was stopped at a level of $58,000 – Intellivision had aimed for a mid-million amount in order to be able to complete and produce the console. Even at this point in time, the accompanying documents painted an alarming picture of the financial situation. The StartEngine backers got their money back.

The operational costs are as a result “dramatic” been reduced, among other things by a reduction in the workforce. The remaining resources would now be used for technical processes and quality assurance. It now has one “test production” given – the process is of crucial importance in order to prove to existing and future investors, partners and customers that one can build a working platform. That’s exactly what there had recently been serious doubts about. The test devices should be completed in the coming weeks.

At the same time, Intellivision announces a change in strategy with a view to sales: Rising energy costs, disrupted supply chains and high inflation have increased the cost base significantly. The focus of the company is now on the delivery of the pre-orders and on the delivery of two large distribution partners. The announcement does not reveal which companies are involved. Koch Media has secured the distribution rights for Europe. Apart from that, Intellivision intends to concentrate on direct sales – the retail trade will only be supplied in a second step, if the cost structure with a view to the margins allows it.

The uncertainty surrounding the delivery of Intellivision Amico has led to a flood of pre-order requests asking for a refund of their prepayment. These requests would now “slow” layered. However, the downsizing and the financial situation would lead to delays.

According to its own statement, Intellivision is working on license agreements in order to implement Intellivision’s own games for other platforms. As a result, Adam expects more attention for the Amico brand. Corresponding agreements are to be announced shortly.

Intellivision still does not give a new date for the delivery of the Amico console.

The development at Intellivision is also being followed with great attention in Germany – firstly because several local studios have developed games for Intellivision Amico. Secondly, because the federal and state governments have subsidized this development with well over half a million euros. And thirdly, because we have had our own European headquarters in Nuremberg since the summer of 2019. When asked by GamesWirtschaft, the company emphasized that this branch should continue to exist.