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The reason 3DO went bankrupt was simple. Trip Hawkin's ego got in the way of him making logical, sound, financial decisions. He poured out over $24 million dollars on a "Snuggles the Bear fabric softener" campaign which consisted of commercials for the game "Army Men" showing them blowing the stuffed bear to bits. The commercial was immediately pulled because of trademark infringements. There was then another commercial with the same theme, again pulled after only one airing. Trip was thrilled at this "game" he was playing, as he told us when we had our annual company meeting, and seemed to be oblivious to the large amounts of money he was throwing away.
The other main reason for 3DO's extinction is that for the last few years that they were in business, it seemed like almost daily we were introduced to more and more middle-management managers. The ratio grew to what seemed like 3 managers for every R&D employee. They layoffs that ensued hit the hard working employees the hardest, leaving nothing but a company made up of managers managing managers managing other managers. No one was left to do the actual work.
And to show his "thanks" to us hard working employees who had been with the company for years, waiting for our "stock" sharing, game-based profits to begin, as promised over and over again, we were laid off within weeks of collecting our 5 week sabbaticals, which were earned for working for New World and 3DO for 5 years or more. Two weeks severance pay and that was that!
Please realize that this is just one employee's observation and opinion, from the inside looking out. Personally, my career and livelihood have never recovered fully from this disaster unlike Trip Hawkins who continues to climb mountains........ of money made from the hard work and blood and sweat from so many fallen heroes. ......
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