Opinion: Signature Devices/Graffiti - Fax Spam + Press Release Frenzy = ?
Now, here's an interesting one. We do still get 'archaic' faxes from time to time at GameSetWatch and the CMP Game Group - sometimes the odd press release, sometimes indignant ones from Jack Thompson (more on this soon!), and recently, and most intriguingly, a 'junk fax' strenuously inciting us to buy Signature Devices' stock.
Now, why would you guys care about this? Well, Signature Devices, despite the generic tech company name, is almost entirely a game developer and publisher, sometimes under the Graffiti Entertainment name. Gamasutra has covered Graffiti in the past - the company "...is perhaps most recognized as the publisher of Neko Entertainment's multiplatform budget release Crazy Frog Racer and Sabarasa Entertainment's Mazes of Fate for the Game Boy Advance."
Here's the fax, which includes one of those delightfully fake handwritten notes on it - let's go from there:

A lot of similar text to the junk fax appears in this 'Wall Street News Alert's "stocks to watch"' listing from February, tipping the company alongside Microsoft and Netflix, and which claims: "The company has a long list of noteworthy PC and Xbox game credits including "SAMURAI SHODOWN V" for Xbox, "King of Fighters '94 Rebout" for Xbox, "Far Cry" and "Medal of Honor - Pacific Assault," and many others."
Those last two are, needless to say, not games wholly developed by Signature Devices - the junk fax itself says that the firm 'did the 3D engineering' for those two last titles, and the 'the' is stretching things too - as the company's Far Cry page reveals that it did DX7 fallback and optimizations and shader work. But the company is indeed listed on the credits - though it's only under 'Performance Consulting & Support', which is pretty far from 'did the 3D engineering for'. They are credited separately and non-specifically (under their own company title) for Medal Of Honor, mind you.
You will also note in the disclosure below the stock website's tips: "WSCF has been compensated Fourteen Thousand Dollars for coverage of Signature Devices, Inc. (PINKSHEETS: SDVI), by a third party (Alex Consulting Inc.), who is non-affiliated and may hold a significant position in the stock, for services provided including dissemination of company information in this release." Nice that they disclose it, but you can see what's going on here.
In any case, many of the company's press releases seem to be stoking the fire, with such non-events as the announcement of 'negotiations' with undisclosed parties and even better, under the headline 'Royalty Streams Fuel Growth for Potential Explosive Returns for Signature Devices, Inc' - yes, there may be royalties in the firm's much-starred future!
Interestingly, the firm also boasts that it won a lawsuit against SNK recently, with General Counsel Philip Kramer commenting gleefully: "In the end we received tens of thousands of dollars from SNK to settle the lawsuit. We could have taken this further, but were willing to settle early and have a clean slate with no more pending litigation." Nothing like a sore winner, huh? Presumably this is regarding the SNK-licensed Xbox titles.
Now, a couple of clarifications here - we're not saying that Signature Devices is necessarily a bad game publisher and developer or intrinsically terrible people. But it does rather seem like at least a few shadowy figures are trying to get people to buy Signature Devices stock based on slightly hyped-up claims - and the company is putting out enough press releases to drown a few kittens in order to support that. So let's see what happens next, huh?









Comments
Strange stuff. King of Fighters '94 Rebout for xbox was never released. The reason SNK gave was crashing bugs. I wonder if there is more to the story.
Posted by: Corey Holcomb-Hockin | September 17, 2007 9:28 AM
Isn't this just a standard pump-and-dump? Normally these are done without the company in question even knowing about it (and it's never good for them).
For the uninitiated, pump-and-dump is where some outside party buys a bunch of stock in a company that has a low share price, and then sends out spam (email and faxes) saying that there's amazing news, this stock is about to fly. People suckered in by this then buy the stock, which does indeed raise its price, often many-fold, at which point the evil outsider sells all of his shares. The price plummets, and all the suckers lose their money, with a price that is often significantly lower than the pre-pump-and-dump price (which screws the company in question).
It's quite likely that Signature Devices has nothing at all do do with this.
Posted by: Matthew F | September 17, 2007 1:49 PM
The company's press releases are worded, to my mind, much more towards investors than the general public, though.
I mean seriously - who puts out a release saying that you may be getting unspecified amounts of royalties in the future?
Posted by: simonc | September 17, 2007 2:21 PM
Who writes exclamation points like that? Did the person who faxed it have his six-year-old kid graffiti the top?
Posted by: whitebrice | September 17, 2007 2:22 PM
It's true that their press releases are investor-oriented, but that seems to hold true going all the way back. They may have decided early-on that investors were more important than general marketing attention (foolishly).
Not saying it couldn't be purposeful on the part of SD, just that it's more likely that it's a pump-and-dump that just happens to look bad.
Posted by: Matthew F | September 17, 2007 3:13 PM
Tens of thousands? Can you get a Big Mac for that much these days?
Practically all that's evil in game development these days can be neatly summed up in the words CRAZY FROG RACER.
Posted by: John H. | September 17, 2007 3:22 PM
Well I've done some digging and despite some tasteless and shameless marketing by whoever, this stock seems to have a very bright future.
Posted by: Reg | January 10, 2008 3:41 AM