Creative Technology Ltd is writing off some $5m that it invested in the Cupertino games software start-up Creative Insights Inc for a substantial minority stake last year (CI No 2,373). The Singapore company will take the hit against its figures for the current quarter. Creative Insights has indicated that it is to cease operations and may seek reorganisation or liquidation. It acquired Project Management Consultancy Ltd in Newbury, Berkshire and changed its name to Creative Insights Europe Ltd, one year ago (CI No 2,373), but the latter has already staged a buyout. Managing director John Dean said the buyback was a paper transaction in which the company picked up certain paper obligations rather than a financial transaction. Dean said the company – to be renamed Crush! Ltd from August 1, will continue in the 32-bit CD games market and has signed a deal with Vic Tokai, the software subsidiary of Tokai Co in Japan to license Mortal Coil – a CD-ROM game in which which players adopt a Tank Girl persona to save the world from aliens. The company has also made its first CD single for a fledgling band called Wounded Arm, which won a contract with Polygram NV as a result. The CD-ROM contains a video of the band, song lyrics so that fans can sing along, a pre-set interview that users can access by typing questions into their personal computer, and a potted history of the band themselves. Dean is now talking to other record labels, and says they said seem keen to use the CD-ROM single as a new marketing ploy. Dean says that he is also seeking partners to boost sales, marketing and distribution channels.
