Intellivision gives an update on its Amico console...and things aren't looking good.
Things don't seem to be going well for Intellivision's business, and its iffy Amico console sounds like more of a risky bet. Intellivision recently emailed investors with an update on the Amico's progress and said it hopes to start shipping consoles sometime in 2022, but production and shipments could be delayed due to higher costs and market uncertainties. Initial shipments will be focused mainly on fulfilling pre-orders.
The company also says that it has fired a significant portion of its staff to help lower its operating costs. For reference, Intellivision reported an operating loss of $3.2 million in 2021. Amico refunds may be affected by the staff reduction and Intellivision warns of refund delays, but the company intends to fully honor any refunds...eventually.
"We have dramatically reined in operating costs, which unfortunately required a significant reduction in staff," the letter reads.
"We are slowly processing refund requests. The public's uncertainty of our status in the last few months have understandably led to an influx of pre-order refund requests. Because of reduced staff and financing requirements for continued operation, our responses to and processing of these requests has been delayed. Rest assured that our intention is to honor all refund requests.
"We will allocate a portion of all new funding and staff time to winding down the refund queue, while our primary focus is funding and completing a quality product ready for manufacturing."
The company has also closed its fundraiser on StartEngine and will refund all investments.
Right now the bulk of operating costs are being spent on Amico production models to show to investors and consumers in the hopes of driving up more pre-orders and secure more cash for the project.
Intellivision says it may not ship the Amico console to retailers unless more funding is secured. The company says there are "many challenges ahead" and promises to announce more IP and games for the system, and plans to send out Amico demo kits to select media outlets.
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