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Companies & Studios

Imagine Software

The rise and spectacular fall

Imagine Software burned bright and crashed hard, becoming a cautionary tale of hype, overspending, and unfulfilled promises.

SpectrumC64 publishersbritish-gaminghistory 1982–1984

Overview

Imagine Software exemplified early gaming’s excesses. Founded in Liverpool, the company grew rapidly, moved into flashy offices, employed celebrities, and promised revolutionary “megagames” that never materialised. When the BBC cameras arrived to document their success story, they captured instead a company collapsing in real-time. The footage became infamous.

Fast facts

  • Founded: 1982 in Liverpool by Mark Butler and Dave Lawson.
  • Early success: hit games sold hundreds of thousands.
  • Headquarters: expensive offices, Porsches, lavish spending.
  • Megagames: promised revolutionary titles Bandersnatch and Psyclapse.
  • Collapse: July 1984, bailiffs arrived during BBC filming.
  • Legacy: name acquired by Ocean Software.

The rise

Imagine started strong:

  • Arcadia (1982): hit game that funded expansion.
  • Molar Maul, Ah Diddums: commercial successes.
  • Rapid growth: from bedroom to major operation.
  • Marketing investment: heavy advertising, celebrity endorsement.

The excess

Success bred overconfidence:

  • Expensive offices: palatial headquarters.
  • Company cars: Porsches for management.
  • Staff expansion: rapid hiring without revenue to match.
  • Lifestyle spending: entertainment, parties, appearances.

The megagames

Imagine announced revolutionary products:

  • Bandersnatch and Psyclapse: games requiring special hardware.
  • Massive hype: advance orders, magazine coverage.
  • Technical ambition: beyond what was achievable.
  • Development delays: neither game neared completion.

The collapse

July 1984 became infamous:

  • BBC documentary: Commercial Breaks was filming Imagine’s success.
  • Bailiffs arrived: on camera, staff locked out.
  • Real-time documentation: the cameras captured the collapse.
  • Broadcast: the footage aired, becoming cautionary tale.

The aftermath

Imagine’s demise had consequences:

  • Ocean acquired the name: used it for some releases.
  • Staff dispersed: talent joined other companies.
  • Psygnosis formed: some ex-Imagine staff created new company.
  • Industry lesson: hype without delivery destroys companies.

The documentary

Commercial Breaks intended to show gaming’s success:

  • Became instead a document of failure.
  • Staff learning they’re unemployed on camera.
  • Surreal footage of ambition meeting reality.
  • Remains compelling viewing for industry historians.

Legacy

Imagine’s story warned the industry: marketing can’t substitute for management, hype can’t replace product, and growth must be sustainable. The megagames never shipped. The company that promised revolution delivered only a spectacular, televised collapse.

See also