Playwize 3-D Tech Up for Grabs, Buyer Unknown

In recent weeks online brands like Lasseters and Duplicate Poker have been forced to pull the plug -- that trend continued today with Playwize, the gaming software developer, calling it quits after a brief run in the I-gaming industry.

Playwize, formerly known as Bits Corp, got its start in the 1990s developing video game software for the likes of Sony Corporation, Microsoft Corporation and Nintendo Company Ltd. It floated on London's Alternative Investment Market in 2000 and joined the Internet gambling scene in 2005.

That year, the company, headed by Fouad Mir Al Katan, launched a poker room called Pokerwize on the Microgaming Poker Network. Pokerwize ran on proprietary software that featured three-dimensional play with avatars.

Mr. Katan, a gaming software developer since 1984, would later launch Playwize's poker game in France via a deal with Groupe Partouche and license software to Ladbrokes.

In a note to the London Stock Exchange this morning, Playwize said it will discontinue operations and cut all staff. The announcement is not unexpected, however, as the company suspended trading in mid July to clarify its financial position.

Playwize's last set of published results, covering the six months ending Sept. 30, 2007, revealed turnover of £15,000 on a loss of £657,000. Results for the six months to March 30, 2008, have yet to be released.

The nascent three-dimensional poker market has been a tough nut to crack, with PKR -- a company that, contrary to many network operators, does not white-label its software -- emerging the clear winner by liquidity. According to PokerScout.com, PKR's peers, Designed Quality Entertainment (Sweden) and Yatahay Ltd. (Canada), have struggled to keep pace.

Ladbrokes was Playwize's first and only white-label client. The company's most recent results statement, which did not include revenue from Ladbrokes, would suggest Pokerwize did not generate significant turnover.

Ladbrokes did not respond by press time today regarding what impact the Playwize shutdown would have on its poker network. Still, the London bookie offers a Flash and downloadable version of its poker product in addition to the Playwize product.

In an attempt to repay its creditors, Playwize may sell off its assets and software technology. Contracts for disposal have already been signed, the company said, and are awaiting shareholder approval. Financial details were not disclosed.

IGN's Take

Who has agreed to purchase the assets and technology of Playwize?

Was it PKR, looking to buy away a chance for a competitor to make a go in a market it dominates? The company did not respond to an e-mail seeking comment.

Was it Ladbrokes, looking for a new way to bolster liquidity? Highly unlikely. Even though poker revenue fell 6.4 percent to £14.7 million in the first half of this fiscal year, the company is set to merge its liquidity with that of the Microgaming network from 2009.

Was it Microgaming, which gave Playwize its shot in the I-gaming space? The company's chief executive did not immediately respond to an e-mail seeking comment.