Interplay Builds on Base

Over the past six years, Interplay OEM Inc. in Irvine has quietly emerged as a savvy player in the ever competitive computer game industry.

Interplay OEM--or “original equipment manufacturer”--signs deals with hardware makers such as Compaq, Dell and Apple to bundle and distribute game software to markets in North America, Europe, Latin America and Asia.

Such deals are a boon to both the hardware makers, who need products to show off the computer’s technical power, and the game makers, who are always searching for new revenue streams.

The firm, the largest of its kind in the game industry, has a staff of 28 that constantly looks for new opportunities. The company now handles such bundling deals for 10 publishers. The list includes MicroProse (known for its “Magic: The Gathering” series), Fox Interactive (“X-Files” game) and LucasArts Studios (the “Star Wars” series).

So far, the approach has been successful. Revenue from OEM licensing and royalty sales was $5.5 million for the second quarter, a 67% jump from $3.3 million for the same period a year earlier. This revenue accounted for 13.5% of parent company Interplay Entertainment Corp.’s overall revenue for the three months ended June 30.

“How can you show off the processing power of the latest Intel chip with Microsoft Excel?” said Jill Goldworn, president of Interplay OEM. “A spreadsheet is a spreadsheet. You need hot graphics and great games to highlight what the technology can do--and to show consumers why they need to buy that new machine.”

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P.J. Huffstutter covers high technology for The Times. She can be reached at (714) 966-7830 and at p.j.huffstutter@latimes.com.