Play Meter

Digital Controls
closes doors
Two weeks after filing for reorga-
nization under Chapter 11 of the bank-
ruptcy code. Digital Controls. Inc .. on
July 7 laid off its employees and closed
its Norcross. Ga .. facility.
"When the call went out for more
capital to continue building games
and paying employees' salaries.'' a
company source said. "the answer we
got back was 'no.' "
That answer came from the firm's
major stockholder. Si Redd. who.
according to another source. twice
before had bailed the company out
when it was threatened by rising
debts. Early last year. the source said.
Redd assumed control of most of the
company's stock by buying off a bank
debt of more than $2 million and later
in the year put up another $1 million to
keep Digital running.
In late June this year. Redd. foun-
der and chairman of Reno. Nev .. slot-
machine manufacturer International
Game Technology. again found
Digital in trouble. He accepted the
resignation of Mike Macke. the com-
pany's co-founder and president. and
filed for reorganization in federal
bankruptcy court. Under the cloak of
Chapter 11 reorganization status. a
company is given relief from its cur-
rent debt and an opportunity to con-
tinue operating while it devises a plan
to pay off all or at least part of its debt.
Although Redd is listed as Digital's
major creditor-abou t $2. I million of
the company's $2.6 million debt is
owed him-he apparently changed
his mind about the company's future
and opted to close down.
Digital Controls opened in 1981
when Atlanta natives Macke and
Mike Pace set up shop in Norcross and
began selling Little Casino. a counter-
top video card game. The amusement-
only game was aimed at operators
who wanted to profit from the video
card-game craze but didn't want to
operate pay-out machines or credit
PLAY METER. July 15. 1986
pokers.
More than 20.000 Little Casino
games were sold in its original edition.
a color version. and a conversion kit
for the company's Countercade
system.
When sales of the game began to
fall. Digital turned to other equip-
ment-a digital-readout adding game
called Tactician . an upright game
called Lode Runner. and the upright
Ghosts 'N Goblins licensed from
Capcom. The company also tried to
diversify into videodisc training hard-
ware and software for the retail com-
puter industry. but Digital's entry into
that market coincided with a slump in
the retail computer business.
While the general decline of the
coin-op industry after 1982 and
Digital's inability to gain the support of
major distributors hurt the company,
the knockout punch may have come
when sales of Ghosts 'N Goblins were
cut into by the wide availability of
counterfeit versions.
"Almost as soon as we signed the
agreement to manufacture and
market the game. pirated games
started appearing in lcoations around
the country," said the Digital source.
who asked not to be identified. "We
even had trouble with parallel
boards." The company had hoped the
game would enable it to show a profit
for 1986.
Attending opening festivities of 50th State Coin-Op are, standing from left,
Brian Duke, Greg Rice. and Kane Fernandez. Seated are Cindy Duke, left.
and Linda Fernandez.
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