Not only are they near bankruptcy, they have also lost the Turok and Major League Baseball licenses.

In a recent financial report Acclaim stated that they may seek bankruptcy or in fact close down all together.

For the fiscal year ending March 31, 2004 Acclaim's profits $142.7 million, down $67.4 million from the previous year. Acclaim's net loss for this year is $56.4 million, compared to $84.8 million the year before. Acclaim also reported a gross profit of $64.1 million, down $14 million from last year.

Most of the loses occurred during the final quarter of 2004, with a net loss of $25.4 million for that period.

As well as poor profits for the fiscal year it has been announced that Acclaim have lost the licenses for Turok and Major League Baseball. While no reasons were given for the loses it is presumed that it is due to non-payment of royalties.

This presents a big problem for Acclaim, as their All-Star Baseball series is one of their highest earners. And now they will not be able to use real player names and likenesses in the series.

While Acclaim state that they have paid all royalties due to the Major League Baseball Player's Association there is a continuing dispute over the title.

Classic Media, who own the rights to Turok pulled the license from Acclaim in June, due to non-payment of royalties.

While Acclaim is trying to find a way out it is not likely considering the company's current image. However Acclaim are trying to find a new credit lender due to their current agreement with GMAC Commercial Finance ending soon.

Their financial report states "Failure to obtain a new banking facility would materially adversely affect the Company's operations and liquidity and the Company could be forced to cease operations or seek bankruptcy protection."

Acclaim's upcoming titles, including Worms Forts Under Siege, 100 Bullets, Juiced, Red Star and their Bard's Tale seems to be where the company's future lies.