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{{Short description|Company}}
{{Infobox_Company |
{{Use mdy dates|date=August 2024}}
company_name = Phantom Entertainment|
{{Infobox company
company_logo = [[Image:Phantom-Entertainment-logo.jpg|316px|Phantom Entertainment logo]]|
| name = Phantom Entertainment
company_type = [[Public company|Public]] ({{otcbb|PHEI}}) |
| logo = [[Image:Phantom-Entertainment-logo.jpg|316px|Phantom Entertainment logo]]
foundation = 2002|
| type = Manufacturing
location = [[Seattle, Washington]]|
| location_city = [[Ridgewood, NJ]]<ref>{{cite web |title=Register |via=[[Twitter]] |language=en |url-access=limited |url=https://twitter.com/phantomlives |access-date=December 7, 2020}}</ref>
key_people = [[Greg Koler]], CEO<br />[[Tim Roberts]], Chairman of the Board|
| key_people = John Landino (CEO)
num_employees = 3, [[as of 2007|as of July 2007]] [http://arstechnica.com/articles/culture/true-infinium-stories-the-73-million-phantom.ars]|
| num_employees = 3 (as of July 2007)<ref>{{cite web | url = https://arstechnica.com/gadgets/news/2007/06/true-infinium-stories-the-73-million-phantom.ars | title = True Infinium stories: the $73 million (and counting) Phantom disaster | first = Nate | last = Anderson | date = June 3, 2007 | access-date = October 1, 2008 | archive-date = March 11, 2009 | archive-url = https://web.archive.org/web/20090311033343/http://arstechnica.com/gadgets/news/2007/06/true-infinium-stories-the-73-million-phantom.ars | url-status = live }}</ref>
revenue = None, development stage company|
| revenue =
industry = [[Video game console|Video game consoles and peripherals]]|
| industry = [[Video game console|Internet TV, media-center and video-game consoles and peripherals]]
products = [[The Phantom (game system)|The Phantom Lapboard]] <br> [[The Phantom (game system)|Phantom Gaming Service]]
| products = [[Phantom Lapboard]]
}}
}}


'''Phantom Entertainment, Inc.''' (known as '''Infinium Labs, Inc.''' until 2006) was a company founded in 2002 by Tim Roberts which made [[computer keyboard]]s. However, Phantom was best known for the Phantom, a [[video game console]] advertised for Internet [[gaming on demand]] in [[2004 in games|2004]]; it was never marketed, leading to suggestions that it was [[vaporware]]. The company's website was last updated in late 2011,<ref>{{cite web|url=http://phantom.net/|title=Phantom Entertainment 2011: Home to the Phantom Lapboard|access-date=November 28, 2013|archive-date=December 12, 2013|archive-url=https://web.archive.org/web/20131212123342/http://www.phantom.net/|url-status=live}}</ref> and Phantom's ownership of the domain has since expired.
[[Image:Phantom logo txt.jpg|thumb|right|Phantom Text Logo]]


=={{anchor|Company history}}History==
[[Image:Phantom logo helmut.jpg|thumb|right|Phantom Graphical Logo Icon]]
Infinium Labs was founded by Tim Roberts in 2002 as a private company. In January 2003 it issued a press release saying that it would soon release a "revolutionary new gaming platform" with an on-demand video-game service, delivering games through an [[online]] subscription. The press release had no specific information, but included a computer-generated [[prototype]] design. Due to the use of [[buzzwords]] and the lack of details, the product was derided nearly from the beginning<ref name="HomeLAN">{{cite web|url=http://www.homelanfed.com/index.php?id=11482 |title=Phantom Interview |author=John Callaham |date=January 20, 2003 |work=HomeLAN |access-date=February 5, 2012 |url-status=usurped |archive-url=https://web.archive.org/web/20030402120109/http://www.homelanfed.com/index.php?id=11482 |archive-date=April 2, 2003 }}</ref> by news sites such as ''[[IGN]]''<ref name="IGn2003">{{cite web |url=http://pc.ign.com/articles/383/383280p1.html |archive-url=https://web.archive.org/web/20030205103621/http://pc.ign.com/articles/383/383280p1.html |url-status=dead |archive-date=February 5, 2003 |title=Destroy Your Game Systems |author=Ivan Sulic |date=January 21, 2003 |work=IGN |access-date=February 5, 2012}}</ref> and ''[[Slashdot]]'' and in the ''[[Penny Arcade]]'' [[webcomic]].<ref name="PennyArcade1">{{cite web |url=https://www.penny-arcade.com/comic/2003/01/22/dude-whoa |title=Penny Arcade "Dude, Whoa" |author=Jerry Holkins |date=January 22, 2003 |work=Penny Arcade |access-date=February 5, 2012 |archive-date=April 3, 2014 |archive-url=https://web.archive.org/web/20140403151938/http://www.penny-arcade.com/comic/2003/01/22/dude-whoa |url-status=live }}</ref> The hardware and gaming site [[HardOCP]] researched and wrote an extensive article on the company and its operation, and was sued in turn. The Phantom placed first in ''[[Wired News]]''{{'}}s "Vaporware 2004".<ref>{{cite news|first=Leander|last=Kahney|url=https://www.wired.com/news/culture/0,1284,66195-4,00.html?tw=wn_story_page_next3 |title=Vaporware Phantom Haunts Us All|publisher=[[Wired News]]|date=January 7, 2005|access-date=May 17, 2006 |archive-url = https://web.archive.org/web/20060131063719/http://www.wired.com/news/culture/0,1284,66195-4,00.html?tw=wn_story_page_next3 <!-- Bot retrieved archive --> |archive-date = January 31, 2006}}</ref> In 2004, Infinium Labs went [[Initial public offering|public]].<ref name="PR2007"/>


Roberts left the company in summer 2005 (with millions of shares of stock) before any products had been delivered. He later rejoined as chairman of the board, but in a July 2007 press release he again resigned from the company.<ref name="PR2007">{{cite web |url=http://www.prnewswire.com/news-releases/timothy-m-roberts-resigns-as-chairman-and-director-of-phantom-entertainment-inc-52714642.html |title=Timothy M. Roberts Resigns as Chairman and Director of Phantom Entertainment, Inc |author=Infinium Labs |date=July 9, 2007 |work=Infinium Labs Press Release |access-date=February 5, 2012 |archive-date=December 20, 2011 |archive-url=https://web.archive.org/web/20111220044413/http://www.prnewswire.com/news-releases/timothy-m-roberts-resigns-as-chairman-and-director-of-phantom-entertainment-inc-52714642.html |url-status=live }}</ref> Subsequent CEOs included Kevin Bachus (who took the post in August 2005), Greg Koler (in January 2006)<ref>{{cite news | url = http://www.next-gen.biz/news/bachus-quits-infinium | archive-url = https://archive.today/20120904175340/http://www.next-gen.biz/news/bachus-quits-infinium | url-status = dead | archive-date = September 4, 2012 | title = Bachus Quits Infinium | first = Christian | last = Svensson | date = November 21, 2005 | access-date = July 23, 2006 }}</ref> and John Landino, who was appointed CEO and interim chief financial officer in July 2008.<ref>{{cite web | url = https://www.sec.gov/Archives/edgar/data/1145019/000114420408042568/v121234_8k.htm | title = SEC - Form 8k - Resignation of Greg Koler | date = July 29, 2008 | access-date = September 5, 2008 | archive-date = October 6, 2012 | archive-url = https://web.archive.org/web/20121006235836/http://www.sec.gov/Archives/edgar/data/1145019/000114420408042568/v121234_8k.htm | url-status = live }}</ref>
'''Phantom Entertainment, Inc''', formerly known as '''Infinium Labs''', is a company that was supposedly developing a new [[video game console]] called the [[The Phantom (game system)|Phantom]], which went through several supposed revisions before being cancelled in [[February 2006]]. As of [[September 2006]], the company was promising to introduce its "Lapboard" product in [[November 2006]], with a gaming service to follow in [[March 2007]].<ref name="extremetec">[http://www.extremetech.com/article2/0,1558,2015342,00.asp?kc=ETRSS02129TX1K0000532 "Surprise! Phantom Delays Game Service Again"]</ref> The "Lapboard" has still yet to ship as of [[December 2007]].


In September 2006 the company (which had changed its name from Infinium Labs)<ref>{{cite web | url = https://www.engadget.com/2006/07/19/infinium-changes-name-to-phantom-entertainment/ | title = Infinium changes name to Phantom Entertainment | first = Darren | last = Murph | date = July 19, 2006 | access-date = October 1, 2008 | archive-date = June 17, 2008 | archive-url = https://web.archive.org/web/20080617034027/http://www.engadget.com/2006/07/19/infinium-changes-name-to-phantom-entertainment/ | url-status = live }}</ref> promised to introduce its Phantom Lapboard product in November 2006, with a gaming service to follow in March 2007.<ref>{{cite web | url = http://www.extremetech.com/article2/0,1558,2015342,00.asp?kc=ETRSS02129TX1K0000532 | archive-url = https://web.archive.org/web/20100730091921/http://www.extremetech.com/article2/0,1558,2015342,00.asp?kc=ETRSS02129TX1K0000532 | archive-date = July 30, 2010 | title = Surprise! Phantom Delays Game Service Again | date = September 12, 2006 | access-date = October 1, 2008}}</ref> In June 2008, the company released the Lapboard.<ref>{{cite web |url=http://gadgets.boingboing.net/2008/06/24/infinium-labs-finall.html |title=Infinium Labs finally releases the Phantom Lapboard - Boing Boing |publisher=Gadgets.boingboing.net |date=June 24, 2008 |access-date=June 28, 2011 |archive-date=July 20, 2011 |archive-url=https://web.archive.org/web/20110720203747/http://gadgets.boingboing.net/2008/06/24/infinium-labs-finall.html |url-status=live }}</ref> In August 2007, Phantom Entertainment signed an agreement with ProGames Network to provide Lapboards and "game-service content" in hotels worldwide.<ref name="businesswire">{{cite web | url = http://www.businesswire.com/news/home/20070822005741/en | title = Phantom Entertainment Signs with ProGames Network to Place Phantom Lapboard and Game Service Content in Hotels Worldwide | work = BusinessWire | date = August 22, 2007 | access-date = August 23, 2007 | archive-date = June 6, 2011 | archive-url = https://web.archive.org/web/20110606051652/http://www.businesswire.com/news/home/20070822005741/en | url-status = live }}</ref>
Infinium was founded by [[Tim Roberts]] in [[2002]]. Tim Roberts left the company in the summer of 2005 with millions of shares of stock but before delivering any products. Roberts later rejoined the company as Chairman of the Board but resigned on July 10, 2007 to pursue other opportunities. In [[August 2005]] Kevin Bachus became [[CEO]] but left in [[November 2005]]. Greg Koler, previously the company's European director and consultant, was appointed interim CEO.<ref>{{cite news | url = http://www.next-gen.biz/index.php?option=com_content&task=view&id=1696&Itemid=2 | title = Bachus Quits Infinium | first = Christian | last = Svensson | date = [[2005-11-21]]|accessdate = 2006-07-23 }}</ref> Later, on [[January 11]] [[2006]], Greg Koler was elected as full time CEO.


=={{anchor|The Phantom console}}The Phantom==
The Phantom was promised to be, in essence, a [[personal computer]], made of off-the-shelf components and hardware. Infinium claimed that it would be able to play games streamed over the Internet through a broadband connection for a monthly fee.
{{Infobox information appliance
| name = The Phantom
| image = [[File:Phantom-Console.jpg|250px]]
| caption = The Phantom at E3 2004 in Los Angeles
| type = [[Home video game console]]
| generation = If released, [[History of video game consoles (sixth generation)|sixth]] or [[History of video game consoles (seventh generation)|seventh generation]] (depending on release date)
| releasedate = Canceled; release promised in November 2004, January, March and September 2005
}}
The Phantom is a cancelled home video game console whose development was supposedly begun by Phantom Entertainment–then known as Infinium Labs–in 2003. The device was said to be capable of playing current and future PC games, giving the system a large initial game library and making it easier for developers to produce games for the system. The system was said to feature a direct-download [[content delivery]] service, instead of the [[disk storage|discs]] and [[ROM cartridge|cartridges]] used by most game consoles at the time.


Press releases said in 2003 that the console would be released that year, and the [[digital rights management]] software would be provided by DiStream.<ref name="PR2003Unveil">{{cite web |url=http://www.beststuff.com/fromthewire/phantom-game-console-unveiling-to-be-online-august-17th.html |title=Phantom Game Console Unveiling to Be Online August 17th |author=Infinium Labs |date=July 23, 2003 |work=Infinium Labs Press Release |access-date=February 5, 2012 |archive-url=https://web.archive.org/web/20110305190402/http://www.beststuff.com/fromthewire/phantom-game-console-unveiling-to-be-online-august-17th.html |archive-date=March 5, 2011 |url-status=dead }}</ref><ref name="PR2003DiStream">{{cite web |url=http://www.prnewswire.com/news-releases/infinium-labs-selects-distream-for-digital-rights-management-of-phantom-game-system-and-phantomnet-game-service-72841717.html |title=DiStream Will Provide Server System and Management Platform for PhantomNet |author=Infinium Labs |date=November 3, 2003 |work=Infinium Labs Press Release |access-date=February 5, 2012 |archive-date=December 3, 2013 |archive-url=https://web.archive.org/web/20131203001606/http://www.prnewswire.com/news-releases/infinium-labs-selects-distream-for-digital-rights-management-of-phantom-game-system-and-phantomnet-game-service-72841717.html |url-status=live }}</ref> A [[prototype]] Phantom was first seen at the May 2004 [[Electronic Entertainment Expo]] (E3), although it was rumored to be fake.<ref name="TomsHard">{{cite web |url=http://www.tomshardware.com/news/Online-Games-Store-Phantom,6703.html |title=Phantom Returns With Online Store |author=Kevin Parrish |date=December 16, 2008 |work=TomsHardware |access-date=February 5, 2012 |archive-date=June 26, 2012 |archive-url=https://web.archive.org/web/20120626111338/http://www.tomshardware.com/news/Online-Games-Store-Phantom,6703.html |url-status=live }}</ref> Robrady Design was hired to develop the first Phantom prototype, and Synopse ID was later retained to develop second- and third-generation prototypes.
Opinions amongst the Internet gaming and business community were mixed. The popular webcomic ''[[Penny Arcade (webcomic)|Penny Arcade]]'' was vocally and ferociously critical of the company and its flagship product.<ref>{{cite web | url = http://www.penny-arcade.com/phantom.php | title = Phantom Impressions | author = Glaximus, Jim | work = [[Penny Arcade (webcomic)|Penny Arcade]] | accessdate = 2006-07-23 }}</ref><ref>{{cite web | url = http://www.penny-arcade.com/comic/2003/08/20 | date = [[2003-08-20]] | work = Penny Arcade | title = I Hate The Stupid Phantom | accessdate = 2006-07-23 }}</ref><ref>{{cite web | url = http://www.penny-arcade.com/comic/2004/02/23 | title = Stop Pretending You're A Real Company | work = Penny Arcade | date = [[2004-02-23]] | accessdate = 2006-07-23 }}</ref><ref>{{cite web | url = http://www.penny-arcade.com/comic/2004/03/03 | title = The Precise Location Of Villainy | work = Penny Arcade | date = [[2004-03-03]] | accessdate = 2006-07-23 }}</ref><ref>{{cite web | url = http://www.penny-arcade.com/comic/2006/01/30 | title = Good Money After Almost Incalculably Bad | work = Penny Arcade | date = [[2006-01-30]]|accessdate = 2006-07-23 }}</ref>.


Two units of the first-generation prototype were known to exist, one publicly destroyed by HardOCP at [[QuakeCon]] 2004 as a result of their legal battles with the company (see below),<ref>{{cite web |last1=Shrout |first1=Ryan |title=QUAKECON 2004 (page 3) |url=https://pcper.com/2004/08/quakecon-2004/3/ |website=PC Perspective |access-date=January 5, 2021 |date=August 16, 2004 |archive-date=October 14, 2021 |archive-url=https://web.archive.org/web/20211014141706/https://pcper.com/2004/08/quakecon-2004/3/ |url-status=live }}</ref> the other was spotted by a computer repair shop in [[Venice, Florida]] in 2015 and reported by ''[[Ars Technica]]''.<ref>{{cite web |last1=Orland |first1=Kyle |title=Ars reader: So a guy walks into my shop with an Infinium Phantom console… |url=https://arstechnica.com/gaming/2015/07/ars-reader-so-a-guy-walks-into-my-shop-with-an-infinium-phantom-console/ |website=Ars Technica |access-date=August 25, 2024 |date=July 7, 2015 |archive-date=December 25, 2020 |archive-url=https://web.archive.org/web/20201225205828/https://arstechnica.com/gaming/2015/07/ars-reader-so-a-guy-walks-into-my-shop-with-an-infinium-phantom-console/ |url-status=live }}</ref> In October 2021, a first-generation prototype unit was listed for auction, presumably the same unit that was previously reported by Ars Technica due to its listed repair history.<ref>{{cite web |last1=Knight |first1=Shawn |title=Rare prototype Infinium Labs Phantom console goes up for auction |url=https://www.techspot.com/news/91753-rare-prototype-infinium-labs-phantom-console-goes-up.html |website=TechSpot |access-date=March 28, 2022 |date=October 14, 2021 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630223812/https://www.techspot.com/news/91753-rare-prototype-infinium-labs-phantom-console-goes-up.html |url-status=live }}</ref> A second-generation prototype unit shown at E3 2004 surfaced a year later after the discovery of the surviving 2003 prototype.<ref>{{cite web |last1=Ehringer |first1=John |title=A Close Look at the Never Released Infinium Labs Phantom Video Game Console |url=http://www.5khz.com/2016/01/30/a-close-look-at-the-infinium-labs-phantom/ |website=5khz.com |access-date=January 5, 2021 |date=January 30, 2016 |archive-date=January 7, 2021 |archive-url=https://web.archive.org/web/20210107073514/http://www.5khz.com/2016/01/30/a-close-look-at-the-infinium-labs-phantom/ |url-status=live }}</ref>
In February 2007 computer company [[Alienware]], now owned by [[Dell]], ordered a shipment of the Lapboards for inclusion with a line of media center PC's, supposedly to be on sale in February 2007 but as yet unavailable as of December 20, 2007. [http://biz.yahoo.com/iw/061031/0178314.html]


==={{anchor|Development|Release date}}Release===
On [[August 22]], [[2007]], Phantom Entertainment signed a deal with ProGames network to provide Lapboards and "Game Service Content" in hotels worldwide.<ref>{{cite web | url = http://home.businesswire.com/portal/site/home/index.jsp?ndmViewId=news_view&ndmConfigId=1000001&newsId=20070822005741&newsLang=en | title = Phantom Entertainment Signs with ProGames Network to Place Phantom® Lapboard and Game Service Content in Hotels Worldwide | work = BusinessWire | date = [[2007-08-22]] | accessdate = 2007-08-23 }}</ref>
The Phantom had an online release on August 17, 2003, with basic hardware specifications and a price of "below $399".<ref name="2003Unveiling">{{cite web |url=http://www.ladydragon.com/phantom.html |title=Phantom Unveiling |author=Infinium Labs |date=August 17, 2003 |work=Infinium Labs |access-date=February 5, 2012 |archive-date=August 22, 2010 |archive-url=https://web.archive.org/web/20100822082243/http://www.ladydragon.com/phantom.html |url-status=live }}</ref> Options included customized hardware and the PhantomNet (a gaming-content service), priced at $9.95 a month. A sale date for the first quarter of 2004 was set. It was missed; the company later claimed it would go on sale in November for the holiday season, although it had not developed online-delivery software, licensed games or found any retailers. The second deadline was missed, with Infinium sending thousands of faxes claiming that the system would be released in January 2005.


When that deadline passed, Infinium predicted the system's release for around March 2005. That date also passed, and Infinium Labs was absent from the 2005 E3.<ref>{{cite news|first=Chris|last=Morris|url=https://money.cnn.com/2005/05/19/technology/personaltech/e3_phantom/|title=Whither the Phantom? After a big splash in 2004, Infinium Labs' on-demand game service is nowhere to be found at E3|publisher=[[CNN|CNN/Money]]|date=May 19, 2005|access-date=May 17, 2006|archive-date=April 27, 2006|archive-url=https://web.archive.org/web/20060427185412/http://money.cnn.com/2005/05/19/technology/personaltech/e3_phantom/|url-status=live}}</ref> Kevin Bachus (former Infinium CEO) hinted that the Phantom would be released around the same time as the [[Xbox 360]] in fall 2005, but that date was also missed. By August 2006, the Phantom Console was removed from the products page of the Phantom Entertainment website.
Phantom Entertainment Inc. trades on the [[OTC Bulletin Board|OTCBB]] as {{otcbb|PHEI}}.


===Financial problems===
==Legal controversies==
The company was unable to raise its projected $30&nbsp;million to complete the Phantom and announced it would downsize and focus on the Phantom Lapboard, a [[wireless keyboard]] for home use. On May 16, 2006, the [[Securities and Exchange Commission]] accused Phantom Entertainment founder and former CEO Timothy Roberts of running a "[[pump and dump]]" scheme in promoting the Phantom console in 2004.<ref>{{cite news|first=Chris|last=Morris|url=https://money.cnn.com/2006/05/16/technology/infinium/index.htm|title='Phantom' video game CEO charged with pump and dump scheme|publisher=[[CNN|CNN/Money]]|date=May 16, 2006|access-date=May 17, 2006|archive-date=June 17, 2006|archive-url=https://web.archive.org/web/20060617191634/http://money.cnn.com/2006/05/16/technology/infinium/index.htm|url-status=live}}</ref> The Phantom lost credibility in the gaming and business worlds because its release date was continually pushed back, and because of financial scandals involving Phantom Entertainment (which lost more than $62.7 million since its creation).<ref name="gamespot">{{cite news | title=Infinium opens the books | publisher=GameSpot | date=February 21, 2006 | url=http://www.gamespot.com/news/6144631.html | first=Brendan | last=Sinclair | access-date=April 9, 2006 | archive-date=April 19, 2006 | archive-url=https://web.archive.org/web/20060419174924/http://www.gamespot.com/news/6144631.html | url-status=live }}</ref>
===HardOCP lawsuit===
Steve Lynch wrote a less-than-positive report<ref>{{cite news | title = Behind the Infinium Phantom Console | url = http://www.hardocp.com/article.html?art=NTEy | first = Steve | last = Lynch | work = [[HardOCP]]|date = [[2003-09-17]] | accessdate = 2006-07-23 }}</ref> on the company and its founder that was posted in September 2003 at [[HardOCP]], a [[computer hardware]] news website.


==Lapboard==
On [[February 19]], [[2004]], Infinium Labs' lawyers sent a [[cease and desist letter]] to the editor of HardOCP demanding that the news site take down the article, claiming that it "painted a portrait of a company intent on swindling the public", threatened to file a [[defamation]] suit. Rather than concede to the demands, HardOCP owner Kyle Bennett filed a lawsuit for a [[Declaratory_ruling|declaratory judgement]] stating that they had done nothing wrong. Infinium Labs then filed suit in Florida and denied jurisdiction was proper in Texas, even though they had previously maintained a staffed office in Richardson, Texas (which had by then been closed).{{Fact|date=February 2007}}
[[Image:Lapboard Samples - Black 011.JPG|thumb|right|250px|alt=Black wireless keyboard with thumb drive and wireless mouse|Lapboard (black version)]]


The Phantom Lapboard is a [[wireless]] [[Computer keyboard|keyboard]] made by the company. It was released on June 23, 2008, two years after its originally planned release date. Designed as a component of the Phantom game console, it was ultimately sold for use with [[Internet TV]] and [[Personal computer|PC]] [[video games]] since the Phantom console was cancelled, and never made it to market.<ref name="gamespot1">{{Cite web |url=http://www.gamespot.com/news/6155882.html |title=Phantom transmogrifies – News at GameSpot<!-- Bot generated title --> |access-date=August 20, 2011 |archive-date=May 24, 2011 |archive-url=https://web.archive.org/web/20110524184107/http://www.gamespot.com/news/6155882.html |url-status=live }}</ref> In 2010, a new model of the Lapboard was released to work with Internet TV, gaming and media centers.<ref>{{cite news|url=http://www.maximumpc.com/article/reviews/phantom_lapboard_review|title=Phantom Lapboard Review|last1=Castle|first1=Alex|date=September 7, 2010|newspaper=Pcgamer|access-date=November 29, 2013|archive-date=November 21, 2013|archive-url=https://web.archive.org/web/20131121115533/http://www.maximumpc.com/article/reviews/phantom_lapboard_review|url-status=live}}</ref>
In mid-September 2004, the judge on the case ruled that Infinium Labs must produce several financial documents (including Roberts' personal income tax returns) by the end of the month. Infinium Labs failed to produce the required documents and subsequently faced a court order compelling them to do so. Infinium Labs was informed that sanctions would be awarded to KB Networks and Kyle Bennett in an amount to be determined by the court, later reported to have been $50,000. In settlement, Infinium Labs dropped the co-pending Florida suit but it was claimed that HardOCP's owners and parent company KB Networks had to pay over $200,000 in legal fees to reach that conclusion.


===Other controversies===
===Announcement===
On January 3, 2006, Infinium Labs announced that the lapboard component of the console (a keyboard and mouse designed to be held on the lap, for example, seated on a couch in front of a television) was due to be released to online retailers by the second quarter of 2006.<ref>{{cite news|first=Brendan|last=Sinclair|url=http://www.gamespot.com/news/6141718.html|title=Phantom Lapboard coming to PCs|publisher=[[GameSpot]]|date=January 3, 2006|access-date=May 17, 2006|archive-date=March 10, 2006|archive-url=https://web.archive.org/web/20060310064056/http://www.gamespot.com/news/6141718.html|url-status=live}}</ref> On April 19 it announced that the keyboard would not be released in time for Q2 2006, but the device (manufactured by Itron Technology) would be released in North America and Europe "no later than October" 2006.<ref>{{cite news|first=James|last=Orry|url=http://www.videogamer.com/news/phantom_lapboard_delayed.html|title=Phantom Lapboard delayed|publisher=Pro-G|date=May 18, 2006|access-date=May 18, 2006|archive-date=December 3, 2013|archive-url=https://web.archive.org/web/20131203010939/http://www.videogamer.com/news/phantom_lapboard_delayed.html|url-status=live}}</ref> On August 15 it was announced that the price for the Lapboard would be [[USD|$]]129.99, with customers who preordered receiving a $30 discount.<ref>[https://web.archive.org/web/20080321071314/http://phantom.net/content/customerCare/index.html Phantom Entertainment<!-- Bot generated title -->]</ref> The keyboard was then delayed until November.<ref name="gamespot1" /> On August 22, 2007, Phantom Entertainment signed an agreement with ProGames Network to provide Lapboards and its game services content in hotels worldwide<ref name="businesswire" /> as well as with [[Alienware]] for their media center PCs (Alienware later pulled out of the agreement in December 2007 due to another delay in Lapboard's launch).<ref>{{cite web | url = https://techcrunch.com/2007/12/27/alienware-no-longer-carrying-phantom-lapboard/ | title = Alienware no longer carrying Phantom Lapboard | first = John | last = Biggs | work = CrunchGear | date = December 27, 2007 | access-date = October 1, 2008 | archive-date = June 28, 2013 | archive-url = https://web.archive.org/web/20130628122234/http://techcrunch.com/2007/12/27/alienware-no-longer-carrying-phantom-lapboard/ | url-status = live }}</ref> The keyboard was finally released on June 23, 2008,<ref>{{cite web | url = https://gizmodo.com/gadgets/phantom-lapboard/ | archive-url = https://web.archive.org/web/20071218204012/http://gizmodo.com/gadgets/phantom-lapboard/| archive-date=December 18, 2007| title = Phantom Lapboard - Gizmodo | date = April 25, 2008 | access-date = August 18, 2008 }}</ref> two years after its originally planned release date.
On [[October 31]], [[2005]], it came to light that the [[Securities and Exchange Commission]] have given notice to Tim Roberts, chairman of Infinium Labs' board of directors, that charges were being planned against him for violating unspecified federal securities laws.<ref>{{cite news | url = http://www.gamespot.com/news/6136934.html | title = Phantom maker in hot water with SEC | first = Brendan | last = Sinclair | publisher = [[GameSpot]] | date = [[2005-10-31]]|accessdate = 2006-07-23 }}</ref> In its statement on the notice, Infinium revealed that the company was not notified of the specific charges alleged against Roberts but that it suspected they were related to an SEC investigation that had revealed phony fax scams, where several [[penny stocks]] -- Infinium among them -- were unlawfully promoted to investors.


===Reception===
On [[October 31]], it was also revealed that while Tim Roberts was CEO of Infinium, the company failed to report a large amount of interest and penalties on unpaid payroll taxes. From its inception Infinium has also consistently reported very small amounts of cash on hand and large (and growing) debt.
[[Image:Lapboard Samples - White 002.JPG|thumb|right|250px|alt=White wireless keyboard, with thumb drive and wireless mouse|White Lapboard]]
In April 2008 ''[[Maximum PC]]'' published a preview of the lapboard, describing it as "extremely promising" although the supplied mouse "experienced signal dropouts at a distance of about 24 inches from the sensor". The author was able to use other wireless mice successfully. The preview states that the peripheral will be available in "June for $130 in limited quantities".<ref>{{cite news|url=http://www.maximumpc.com/article/first_look_the_phantom_lapboard|newspaper=Pcgamer|last1=Smith|first1=Will|title=First Look: The Phantom Lapboard|access-date=November 29, 2013|archive-date=December 6, 2013|archive-url=https://web.archive.org/web/20131206165818/http://www.maximumpc.com/article/first_look_the_phantom_lapboard|url-status=live}}</ref> In the actual review, however, ''Maximum PC'' gave the Lapboard a verdict of 4 out of 10 saying: "The bottom line is that this thing is bad. The mouse isn’t good for gaming, the angled keyboard is awful for typing, and for media playback you’d do much better with a slimmer wireless media keyboard with a built-in trackpad or ball, which are available for significantly less than the Lapboard’s $140 asking price."
On July 20, 2009, a sample lapboard received a favorable review from the ''Hardware Heaven'' website.<ref>{{cite web|url=http://www.hardwareheaven.com/reviews/812/pg1/phantom-lapboard-keyboard-mouse-intro-keyboard.html|title=Phantom Lapboard (Keyboard & Mouse)|author=Zardon|date=July 20, 2009|website=HardwareHeaven.com|access-date=November 29, 2013|archive-url=https://web.archive.org/web/20131203133912/http://www.hardwareheaven.com/reviews/812/pg1/phantom-lapboard-keyboard-mouse-intro-keyboard.html|archive-date=December 3, 2013|url-status=dead}}</ref> Despite its lukewarm review, in May 2010 [[About.com]] included the Phantom Lapboard in its [[Father's Day]] gift guide.<ref>{{cite web|url=http://peripherals.about.com/od/pckeyboardsmice/fr/PhantomLapboard.htm|title=Phantom Lapboard Review|last=Johnston|first=Lisa|website=About.com|access-date=November 29, 2013|archive-date=December 3, 2013|archive-url=https://web.archive.org/web/20131203050029/http://peripherals.about.com/od/pckeyboardsmice/fr/PhantomLapboard.htm|url-status=dead}}</ref><ref>{{cite web|url=http://peripherals.about.com/od/laptopbagsaccessories/tp/FathersDay.htm|title=Father's Day Gift Ideas|last=Johnston|first=Lisa|website=About.com|access-date=November 29, 2013|archive-date=December 3, 2013|archive-url=https://web.archive.org/web/20131203045514/http://peripherals.about.com/od/laptopbagsaccessories/tp/FathersDay.htm|url-status=dead}}</ref> On July 19, 2010, Michael Welter posted a generally positive review of the Phantom Lapboard on ''Missing Remote''.<ref>{{cite web|url=http://www.missingremote.com/review/phantom-lapboard|title=The Phantom Lapboard|last=Welter|first=Michael|website=Missing Remote|date=July 19, 2010|access-date=November 29, 2013|archive-date=December 3, 2013|archive-url=https://web.archive.org/web/20131203022943/http://missingremote.com/review/phantom-lapboard|url-status=live}}</ref>


==Legal controversies==
On [[November 17]], [[2005]], Kevin Bachus, CEO of Infinium, handed in his resignation<ref>{{cite web | url = http://www.sec.gov/Archives/edgar/data/1145019/000114420405036842/v029960.htm | title = Change in Directors or Principal Officers, Appointment of Directors or Principal Officers | work = Form 8-K | publisher = Infinium Labs | date = [[2005-11-17]]|accessdate = 2006-07-23 }}</ref> as CEO of the company to take a position at another (undisclosed) company. (It was later revealed that Bachus had been appointed CEO of game developer [[Nival Interactive]].{{Fact|date=February 2007}}) Infinium's board of directors accepted it the next day and elected Greg Koler, a consultant for Infinium as interim CEO and President.


===HardOCP lawsuit===
On [[January 11]], [[2006]], Greg Koler was confirmed as Infinium's CEO and President.<ref>{{cite news | url = http://www.gamespot.com/news/6142236.html | title = Koler named CEO and president of Infinium Labs | first = Brendan | last = Sinclair | publisher = GameSpot|date = [[2006-01-11]] | accessdate = 2006-07-23 }}</ref>
In September 2003 HardOCP, a computer-hardware news website, published an investigative report by writer Steve Lynch critical of Infinium Labs and its founder.<ref>{{cite news | title = Behind the Infinium Phantom Console | url = http://www.hardocp.com/article/2003/09/17/behind_infinium_phantom_console | first = Steve | last = Lynch | work = HardOCP | date = September 17, 2003 | access-date = July 6, 2015 | archive-date = July 7, 2015 | archive-url = https://web.archive.org/web/20150707055044/http://www.hardocp.com/article/2003/09/17/behind_infinium_phantom_console | url-status = live }}</ref> On February 19, 2004, Infinium Labs' lawyers sent a [[cease and desist letter]] to HardOCP's editor demanding that the news site take down the article, claiming that it "painted a portrait of a company intent on swindling the public" and threatening to file a [[defamation]] suit. Rather than concede to Infinium's demands, HardOCP owner Kyle Bennett filed a lawsuit for a [[Declaratory ruling|declaratory judgment]] that his company had done nothing wrong.<ref>{{cite web | url = http://www.gamesindustry.biz/articles/hardocp-takes-legal-action-against-infinium | title = HardOCP takes legal action against Infinium | first = Rob | last = Fahey | date = March 4, 2004 | access-date = October 1, 2008 | archive-date = July 26, 2009 | archive-url = https://web.archive.org/web/20090726124750/http://www.gamesindustry.biz/articles/hardocp-takes-legal-action-against-infinium | url-status = live }}</ref> Infinium Labs then filed suit in Florida, denying that Texas was the proper jurisdiction (although it had previously maintained a staffed office in [[Richardson, Texas|Richardson]]).<ref>{{cite web | url = http://news.spong.com/article/6936/Infiniums_Kevin_Bachus_Accused_of_Lying_to_US_Courts?cb=446 | title = Infinium's Kevin Bachus Accused of Lying to US Courts | date = June 15, 2004 | access-date = October 1, 2008 | archive-date = July 26, 2009 | archive-url = https://web.archive.org/web/20090726130159/http://news.spong.com/article/6936/Infiniums_Kevin_Bachus_Accused_of_Lying_to_US_Courts?cb=446 | url-status = live }}</ref>


In September 2004, the judge required Infinium Labs to produce a number of financial records, including Roberts's personal income-tax returns, by the end of that month. Because the company failed to produce the required documents, HardOCP won a court order compelling them to do so. The judge ruled that sanctions would be awarded to KB Networks and Kyle Bennett in an amount to be determined by the court (later reported as $50,000).<ref name="INFINIUM-LABS-INC-May-2005-10QSB">{{cite web |url=http://edgar.secdatabase.com/403/114420405016780/filing-main.htm |title=INFINIUM LABS INC, Form 10QSB, Filing Date May 23, 2005 |publisher=secdatabase.com |access-date=May 15, 2018 |archive-date=May 16, 2018 |archive-url=https://web.archive.org/web/20180516103523/http://edgar.secdatabase.com/403/114420405016780/filing-main.htm |url-status=live }}</ref> Infinium Labs settled the suit, agreeing to drop the pending Florida suit, and admitting all allegations of KB Networks' Texas complaint; they paid $50,000 to end the suit.
On [[January 25]], [[2006]], Infinium Labs reached an agreement to borrow up to $5,000,000 from the investment group Golden Gate Investors to finance the manufacturing process of the Phantom Lapboard, which is due for release later this year. If fully exercised this will be the largest amount of money borrowed at once to date by Infinium Labs. The loan would be paid over a period of 3 years, and can be converted into common stock and sold to pay it off that way.<ref>{{cite news | url = http://www.1up.com/do/newsStory?cId=3147455 | title = Infinium Bags $5 Million | first = Patrick | last = Klepek|date = [[2006-01-25]] | accessdate = 2006-07-23 }}</ref>


===Other controversies===
On [[February 21]], [[2006]], it was revealed that the Phantom gaming console was put on hold indefinitely. It was also revealed in an SEC filing that Infinium had lost over $62.7 million in 3 years, over half of which was spent on marketing the company and its products which have not yet made it to market. Over $24 million was spent on salaries and consultants with only $2.5 million going towards development. Infinium claimed that they still intended to release their "Lapboard" if their financial situation improved.<ref>{{cite news | url = http://www.gamespot.com/news/6144631.html | title = Infinium opens the books | first = Brendan | last = Sinclair | publisher = GameSpot|date = [[2006-02-21]] | accessdate = 2006-07-23 }}</ref> The "Lapboard" repeatedly missed release dates of the second quarter of 2006, October 2006 and November 2006. [http://www.gamespot.com/news/news_spots.html?date=1145493685#6147978]
In October 2005, it was reported that the [[U.S. Securities and Exchange Commission]] (SEC) had notified Tim Roberts that charges were pending against him for violating federal securities laws.<ref>{{cite news | url = http://www.gamespot.com/news/6136934.html | title = Phantom maker in hot water with SEC | first = Brendan | last = Sinclair | publisher = [[GameSpot]] | date = October 31, 2005 | access-date = July 23, 2006 | archive-date = November 6, 2006 | archive-url = https://web.archive.org/web/20061106061709/http://www.gamespot.com/news/6136934.html | url-status = live }}</ref> In a statement about the notice, Infinium said it was not notified of specific charges, but suspected they were related to an SEC investigation of the unlawful promotion of [[penny stock]]s (including Infinium's).<ref>{{cite web | url = http://www.secinfo.com/d12TC3.z1Z9x.htm | title = Infinium Labs Inc • 8-K • For 10/20/05 | work = Form 8-K | publisher = Infinium Labs | date = October 20, 2005 | access-date = October 1, 2008 | archive-date = July 26, 2009 | archive-url = https://web.archive.org/web/20090726040517/http://www.secinfo.com/d12TC3.z1Z9x.htm | url-status = live }}</ref> Roberts hired a stock promoter to send faxes claiming that the Phantom console's release was imminent, and the company's stock price might increase as much as 3,000 percent. The SEC alleged that the company never intended to release the console at the promised time due to significant unresolved "technological and manufacturing hurdles", and the faxes were part of a [[pump and dump]] scheme on the part of Roberts. Roberts reached a settlement with the SEC in which he was barred from serving as an officer or public director of a public company or participating in penny-stock offerings for five years and paid a $30,000 fine.<ref>{{cite web|url=http://www.404.gov/litigation/litreleases/2008/lr20730.htm|title=SEC settles charges with video game executive|publisher=SEC|date=September 19, 2008|access-date=March 25, 2008|archive-url=https://web.archive.org/web/20090327131742/http://www.404.gov/litigation/litreleases/2008/lr20730.htm|archive-date=March 27, 2009|url-status=dead}}</ref> Roberts was again convicted of fraud in 2017 in a case involving his cloud commerce startup venture Savtira, which collapsed in 2011.<ref>{{cite web |last1=Manning |first1=Margie |title=Inside the grand jury indictment: Savtira's Roberts lied to investors |url=https://www.bizjournals.com/tampabay/news/2015/09/10/inside-the-grand-jury-indictment-savtira-s-roberts.html |publisher=Tampa Bay Business Journal |access-date=March 28, 2022 |date=September 10, 2015 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630223852/https://www.bizjournals.com/tampabay/news/2015/09/10/inside-the-grand-jury-indictment-savtira-s-roberts.html |url-status=live }}</ref><ref>{{cite web |last1=Manning |first1=Margie |title=Founder of defunct Tampa tech firm pleads guilty to fraud |url=https://www.bizjournals.com/tampabay/news/2017/01/10/founder-of-defunct-tampa-tech-firm-pleads-guilty.html |publisher=Tampa Bay Business Journal |access-date=March 28, 2022 |date=January 10, 2017 |archive-date=January 14, 2017 |archive-url=https://web.archive.org/web/20170114012044/http://www.bizjournals.com/tampabay/news/2017/01/10/founder-of-defunct-tampa-tech-firm-pleads-guilty.html |url-status=live }}</ref><ref>{{cite web |title=Founder And CEO Of Defunct Tampa Technology Company Sentenced To 80 Months In Prison For Investment Fraud |url=https://www.justice.gov/usao-mdfl/pr/founder-and-ceo-defunct-tampa-technology-company-sentenced-80-months-prison-investment |publisher=U.S. Department of Justice |access-date=March 28, 2022 |date=March 19, 2018 |archive-date=March 28, 2022 |archive-url=https://web.archive.org/web/20220328134628/https://www.justice.gov/usao-mdfl/pr/founder-and-ceo-defunct-tampa-technology-company-sentenced-80-months-prison-investment |url-status=live }}</ref>


When Roberts was CEO of Infinium, the company failed to report a substantial amount of interest and penalties on unpaid payroll taxes.<ref>{{cite web | url = http://uk.gamespot.com/news/6136934.html | title = Phantom maker in hot water with SEC | first = Brendan | last = Sinclair | publisher = Gamespot | date = November 1, 2005 | access-date = October 1, 2008 | archive-url = https://web.archive.org/web/20090728075323/http://uk.gamespot.com/news/6136934.html | archive-date = July 28, 2009 | url-status = dead }}</ref> From its inception, the company had consistently reported a small amount of cash on hand amid extensive (and increasing) debt.
On [[May 24]], [[2006]], Infinium Labs filed a proxy statement<ref>{{cite web | title = Schedule 14A Information | url = http://www.sec.gov/Archives/edgar/data/1145019/000114420406022455/v044235.htm | work = Infinium Labs | date = [[2006-05-24]]|accessdate = 2006-07-23 }}</ref> inviting their shareholders to come to Tampa Airport Marriott Hotel in [[Tampa, Florida]] on [[July 13]] [[2006]] to vote on a proposal that would change the company's current name from "Infinium Labs" to "Phantom Entertainment", to authorize an issue of 600,000,000 more shares of common stock, valued at $0.001 apiece, and finally, to re-ratify its independent auditors, Webb & Company, P.A., for the rest of the fiscal year.


In January 2006, Infinium Labs reached an agreement to borrow up to $5,000,000 from Golden Gate Investors to finance the manufacturing of the Phantom Lapboard, scheduled for release later that year. This would have been the largest amount of money Infinium Labs had ever borrowed at one time. The loan would have been repaid over three years, with an option of repayment with shares of common stock.<ref>{{cite news | url = http://www.1up.com/do/newsStory?cId=3147455 | title = Infinium Bags $5 Million | first = Patrick | last = Klepek | date = January 25, 2006 | access-date = July 23, 2006 | archive-url = https://web.archive.org/web/20060213162522/http://www.1up.com/do/newsStory?cId=3147455 | archive-date = February 13, 2006 | url-status = dead }}</ref>
On [[August 15]], [[2006]], Phantom Entertainment removed all references to the Phantom Game Receiver from its website. They continued to claim that the content delivery system targeted for the Phantom would be made available for PCs running Microsoft Windows XP / Media Centre.<ref>{{cite web | title = Phantom console disappears | url = http://www.theinquirer.net/default.aspx?article=33737 | publisher = The Inquirer | date = [[2006-8-16]]}}</ref>


In February, ''[[GameSpot]]'' reported that Phantom Entertainment was suspending the Phantom Game Service to develop the Lapboard. An SEC filing showed three-year losses in excess of $62.7&nbsp;million, over half of which was marketing for the company and unreleased products. Over $24&nbsp;million was spent on salaries and consultants, and $2.5&nbsp;million on development. Infinium claimed it still intended to release the Lapboard if its financial situation improved,<ref>{{cite news | url = http://www.gamespot.com/news/6144631.html | title = Infinium opens the books | first = Brendan | last = Sinclair | publisher = GameSpot | date = February 21, 2006 | access-date = July 23, 2006 | archive-date = July 17, 2006 | archive-url = https://web.archive.org/web/20060717040946/http://www.gamespot.com/news/6144631.html | url-status = live }}</ref> but it missed release dates for the second quarter of 2006, October 2006 and November 2006. On August 15, 2006, Phantom Entertainment removed all references to the Phantom Game Receiver from its website, claiming that the content-delivery system targeted for the Phantom would be available for PCs running the [[Microsoft Windows XP]] Media Center edition;<ref>{{cite web | title = Phantom console disappears | url = http://www.theinquirer.net/default.aspx?article=33737 | archive-url = https://web.archive.org/web/20070219193718/http://www.theinquirer.net/default.aspx?article=33737 | url-status = unfit | archive-date = February 19, 2007 | publisher = The Inquirer | date = August 16, 2006}}</ref> it later indicated this service would be available in March 2007, after the initially planned November 2006 release of the Lapboard,<ref>{{cite news | url = http://www.extremetech.com/article2/0,2845,2015342,00.asp | title = Surprise! Phantom Delays Game Service Again | date = September 12, 2006 | access-date = October 1, 2008 | archive-date = November 26, 2008 | archive-url = https://web.archive.org/web/20081126022722/http://www.extremetech.com/article2/0,2845,2015342,00.asp | url-status = live }}</ref> the service did not materialize when the Lapboard ultimately launched in 2008.
On [[September 13]], [[2006]], the company announced that the downloadable game service would be released in March 2007, and that their "lapboard" would come out in November 2006.<ref name="extremetec"/>


==See also==
In early November 2006, the lapboard was delayed once again, claiming that "major manufacturers of media center PCs and distributors" are placing so many orders that the company won't be able to "begin air shipments to the US" until February 2007.{{Fact|date=February 2007}}
* [[Indrema]]
* [[ApeXtreme]]
* [[Coleco Chameleon]]
* ''[[Piposh|Piposh Hollywood]]'', a video game that Phantom Entertainment was set to publish.


==References==
===SEC allegations===
{{Reflist|30em}}
On [[May 16]], [[2006]], the [[Securities and Exchange Commission]] (SEC) accused company founder and former CEO Timothy Roberts of running a [[pump and dump]] [[finance|financial]] [[fraud]] scheme.<ref>Chris Morris, [http://money.cnn.com/2006/05/16/technology/infinium/index.htm 'Phantom' video game CEO charged with pump and dump scheme], [[CNN|CNN/Money]], [[May 16]] [[2006]], ''Accessed on [[May 17]] [[2006]]''.</ref> Among the major allegations was that, in late-2004, Roberts paid a promoter to send thousands of [[junk fax]]es falsely claiming plans to launch the system in January 2005. The resulting buzz drove Infinium Labs' stock up. For the work, Roberts paid the promoter $200,000 of company money and gave him 4 million shares of [[restricted stock]] without registering the transfer with the SEC. Meanwhile, Roberts sold more than 1.3 million shares of his own stock, often without reporting the transactions with the SEC, making a profit of $422,500. Both activities violate federal [[securities law]]s. Roberts could face a fine and could be barred from serving as an officer in a public company ever again.

==Notes==
<div class="references-small">
<references/>
</div>


==External links==
==External links==
* [http://www.phantom.net/ Phantom Entertainment's website]
* [http://phantom.net/ Phantom Entertainment Official Website]
*[http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001145019&owner=include Phantom Entertainment's SEC filings]
* [http://pheiblog.wordpress.com/ Official Phantom Entertainment Blog]
* [https://web.archive.org/web/20110812022817/http://www.gamebump.com/go/gh_editorial_phantom_rewound Phantom: Rewound] – Editorial feature with a history of The Phantom.
* [http://www.hardocp.com/article.html?art=NTEy HardOCP - Behind the Infinium Phantom Console]
* [http://www.marketwatch.com/mw2/tvradio/player.asp?media=0&band=1&remPref=1&siteid=mktw&guid={A73F50D0-5FAF-4FB7-83E8-B9D054522A5F} Video Interview of Kevin Bachus by Marketwatch] {{Webarchive|url=https://web.archive.org/web/20160304061354/http://www.marketwatch.com/mw2/tvradio/player.asp?media=0&band=1&remPref=1&siteid=mktw&guid=%7BA73F50D0-5FAF-4FB7-83E8-B9D054522A5F%7D |date=March 4, 2016 }}
* [http://www.hardocp.com/article.html?art=NTk4 HardOCP - Infinium Labs vs. HardOCP - Round 2]
* [https://web.archive.org/web/20071218204012/http://gizmodo.com/gadgets/phantom-lapboard/ Gizmodo.com - Lapboard]
* [http://arstechnica.com/articles/culture/true-infinium-stories-the-73-million-phantom.ars True Infinium stories: the $73 million (and counting) Phantom disaster] Ars Technica

* [http://www.dailytech.com/article.aspx?newsid=7981 Former Phantom Entertainment CEO and Director Resigns]
{{Sixth generation game consoles}}
{{Seventh generation game consoles}}


[[Category:Video game companies]]
[[Category:Computer keyboard companies]]
[[Category:Companies established in 2002]]
[[Category:Streaming television]]
[[Category:Seventh-generation video game consoles]]
[[Category:Sixth-generation video game consoles]]
[[Category:Vaporware game consoles|Phantom, The]]
[[Category:Video game hardware]]
[[Category:Video game controversies]]
[[Category:Defunct computer companies of the United States]]
[[Category:Defunct computer hardware companies]]

Latest revision as of 19:59, 26 November 2024

Phantom Entertainment
Company typeManufacturing
IndustryInternet TV, media-center and video-game consoles and peripherals
Headquarters
Ridgewood, NJ[1]
Key people
John Landino (CEO)
ProductsPhantom Lapboard
Number of employees
3 (as of July 2007)[2]

Phantom Entertainment, Inc. (known as Infinium Labs, Inc. until 2006) was a company founded in 2002 by Tim Roberts which made computer keyboards. However, Phantom was best known for the Phantom, a video game console advertised for Internet gaming on demand in 2004; it was never marketed, leading to suggestions that it was vaporware. The company's website was last updated in late 2011,[3] and Phantom's ownership of the domain has since expired.

History

[edit]

Infinium Labs was founded by Tim Roberts in 2002 as a private company. In January 2003 it issued a press release saying that it would soon release a "revolutionary new gaming platform" with an on-demand video-game service, delivering games through an online subscription. The press release had no specific information, but included a computer-generated prototype design. Due to the use of buzzwords and the lack of details, the product was derided nearly from the beginning[4] by news sites such as IGN[5] and Slashdot and in the Penny Arcade webcomic.[6] The hardware and gaming site HardOCP researched and wrote an extensive article on the company and its operation, and was sued in turn. The Phantom placed first in Wired News's "Vaporware 2004".[7] In 2004, Infinium Labs went public.[8]

Roberts left the company in summer 2005 (with millions of shares of stock) before any products had been delivered. He later rejoined as chairman of the board, but in a July 2007 press release he again resigned from the company.[8] Subsequent CEOs included Kevin Bachus (who took the post in August 2005), Greg Koler (in January 2006)[9] and John Landino, who was appointed CEO and interim chief financial officer in July 2008.[10]

In September 2006 the company (which had changed its name from Infinium Labs)[11] promised to introduce its Phantom Lapboard product in November 2006, with a gaming service to follow in March 2007.[12] In June 2008, the company released the Lapboard.[13] In August 2007, Phantom Entertainment signed an agreement with ProGames Network to provide Lapboards and "game-service content" in hotels worldwide.[14]

The Phantom

[edit]
The Phantom
The Phantom at E3 2004 in Los Angeles
TypeHome video game console
GenerationIf released, sixth or seventh generation (depending on release date)
Release dateCanceled; release promised in November 2004, January, March and September 2005

The Phantom is a cancelled home video game console whose development was supposedly begun by Phantom Entertainment–then known as Infinium Labs–in 2003. The device was said to be capable of playing current and future PC games, giving the system a large initial game library and making it easier for developers to produce games for the system. The system was said to feature a direct-download content delivery service, instead of the discs and cartridges used by most game consoles at the time.

Press releases said in 2003 that the console would be released that year, and the digital rights management software would be provided by DiStream.[15][16] A prototype Phantom was first seen at the May 2004 Electronic Entertainment Expo (E3), although it was rumored to be fake.[17] Robrady Design was hired to develop the first Phantom prototype, and Synopse ID was later retained to develop second- and third-generation prototypes.

Two units of the first-generation prototype were known to exist, one publicly destroyed by HardOCP at QuakeCon 2004 as a result of their legal battles with the company (see below),[18] the other was spotted by a computer repair shop in Venice, Florida in 2015 and reported by Ars Technica.[19] In October 2021, a first-generation prototype unit was listed for auction, presumably the same unit that was previously reported by Ars Technica due to its listed repair history.[20] A second-generation prototype unit shown at E3 2004 surfaced a year later after the discovery of the surviving 2003 prototype.[21]

Release

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The Phantom had an online release on August 17, 2003, with basic hardware specifications and a price of "below $399".[22] Options included customized hardware and the PhantomNet (a gaming-content service), priced at $9.95 a month. A sale date for the first quarter of 2004 was set. It was missed; the company later claimed it would go on sale in November for the holiday season, although it had not developed online-delivery software, licensed games or found any retailers. The second deadline was missed, with Infinium sending thousands of faxes claiming that the system would be released in January 2005.

When that deadline passed, Infinium predicted the system's release for around March 2005. That date also passed, and Infinium Labs was absent from the 2005 E3.[23] Kevin Bachus (former Infinium CEO) hinted that the Phantom would be released around the same time as the Xbox 360 in fall 2005, but that date was also missed. By August 2006, the Phantom Console was removed from the products page of the Phantom Entertainment website.

Financial problems

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The company was unable to raise its projected $30 million to complete the Phantom and announced it would downsize and focus on the Phantom Lapboard, a wireless keyboard for home use. On May 16, 2006, the Securities and Exchange Commission accused Phantom Entertainment founder and former CEO Timothy Roberts of running a "pump and dump" scheme in promoting the Phantom console in 2004.[24] The Phantom lost credibility in the gaming and business worlds because its release date was continually pushed back, and because of financial scandals involving Phantom Entertainment (which lost more than $62.7 million since its creation).[25]

Lapboard

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Black wireless keyboard with thumb drive and wireless mouse
Lapboard (black version)

The Phantom Lapboard is a wireless keyboard made by the company. It was released on June 23, 2008, two years after its originally planned release date. Designed as a component of the Phantom game console, it was ultimately sold for use with Internet TV and PC video games since the Phantom console was cancelled, and never made it to market.[26] In 2010, a new model of the Lapboard was released to work with Internet TV, gaming and media centers.[27]

Announcement

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On January 3, 2006, Infinium Labs announced that the lapboard component of the console (a keyboard and mouse designed to be held on the lap, for example, seated on a couch in front of a television) was due to be released to online retailers by the second quarter of 2006.[28] On April 19 it announced that the keyboard would not be released in time for Q2 2006, but the device (manufactured by Itron Technology) would be released in North America and Europe "no later than October" 2006.[29] On August 15 it was announced that the price for the Lapboard would be $129.99, with customers who preordered receiving a $30 discount.[30] The keyboard was then delayed until November.[26] On August 22, 2007, Phantom Entertainment signed an agreement with ProGames Network to provide Lapboards and its game services content in hotels worldwide[14] as well as with Alienware for their media center PCs (Alienware later pulled out of the agreement in December 2007 due to another delay in Lapboard's launch).[31] The keyboard was finally released on June 23, 2008,[32] two years after its originally planned release date.

Reception

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White wireless keyboard, with thumb drive and wireless mouse
White Lapboard

In April 2008 Maximum PC published a preview of the lapboard, describing it as "extremely promising" although the supplied mouse "experienced signal dropouts at a distance of about 24 inches from the sensor". The author was able to use other wireless mice successfully. The preview states that the peripheral will be available in "June for $130 in limited quantities".[33] In the actual review, however, Maximum PC gave the Lapboard a verdict of 4 out of 10 saying: "The bottom line is that this thing is bad. The mouse isn’t good for gaming, the angled keyboard is awful for typing, and for media playback you’d do much better with a slimmer wireless media keyboard with a built-in trackpad or ball, which are available for significantly less than the Lapboard’s $140 asking price." On July 20, 2009, a sample lapboard received a favorable review from the Hardware Heaven website.[34] Despite its lukewarm review, in May 2010 About.com included the Phantom Lapboard in its Father's Day gift guide.[35][36] On July 19, 2010, Michael Welter posted a generally positive review of the Phantom Lapboard on Missing Remote.[37]

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HardOCP lawsuit

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In September 2003 HardOCP, a computer-hardware news website, published an investigative report by writer Steve Lynch critical of Infinium Labs and its founder.[38] On February 19, 2004, Infinium Labs' lawyers sent a cease and desist letter to HardOCP's editor demanding that the news site take down the article, claiming that it "painted a portrait of a company intent on swindling the public" and threatening to file a defamation suit. Rather than concede to Infinium's demands, HardOCP owner Kyle Bennett filed a lawsuit for a declaratory judgment that his company had done nothing wrong.[39] Infinium Labs then filed suit in Florida, denying that Texas was the proper jurisdiction (although it had previously maintained a staffed office in Richardson).[40]

In September 2004, the judge required Infinium Labs to produce a number of financial records, including Roberts's personal income-tax returns, by the end of that month. Because the company failed to produce the required documents, HardOCP won a court order compelling them to do so. The judge ruled that sanctions would be awarded to KB Networks and Kyle Bennett in an amount to be determined by the court (later reported as $50,000).[41] Infinium Labs settled the suit, agreeing to drop the pending Florida suit, and admitting all allegations of KB Networks' Texas complaint; they paid $50,000 to end the suit.

Other controversies

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In October 2005, it was reported that the U.S. Securities and Exchange Commission (SEC) had notified Tim Roberts that charges were pending against him for violating federal securities laws.[42] In a statement about the notice, Infinium said it was not notified of specific charges, but suspected they were related to an SEC investigation of the unlawful promotion of penny stocks (including Infinium's).[43] Roberts hired a stock promoter to send faxes claiming that the Phantom console's release was imminent, and the company's stock price might increase as much as 3,000 percent. The SEC alleged that the company never intended to release the console at the promised time due to significant unresolved "technological and manufacturing hurdles", and the faxes were part of a pump and dump scheme on the part of Roberts. Roberts reached a settlement with the SEC in which he was barred from serving as an officer or public director of a public company or participating in penny-stock offerings for five years and paid a $30,000 fine.[44] Roberts was again convicted of fraud in 2017 in a case involving his cloud commerce startup venture Savtira, which collapsed in 2011.[45][46][47]

When Roberts was CEO of Infinium, the company failed to report a substantial amount of interest and penalties on unpaid payroll taxes.[48] From its inception, the company had consistently reported a small amount of cash on hand amid extensive (and increasing) debt.

In January 2006, Infinium Labs reached an agreement to borrow up to $5,000,000 from Golden Gate Investors to finance the manufacturing of the Phantom Lapboard, scheduled for release later that year. This would have been the largest amount of money Infinium Labs had ever borrowed at one time. The loan would have been repaid over three years, with an option of repayment with shares of common stock.[49]

In February, GameSpot reported that Phantom Entertainment was suspending the Phantom Game Service to develop the Lapboard. An SEC filing showed three-year losses in excess of $62.7 million, over half of which was marketing for the company and unreleased products. Over $24 million was spent on salaries and consultants, and $2.5 million on development. Infinium claimed it still intended to release the Lapboard if its financial situation improved,[50] but it missed release dates for the second quarter of 2006, October 2006 and November 2006. On August 15, 2006, Phantom Entertainment removed all references to the Phantom Game Receiver from its website, claiming that the content-delivery system targeted for the Phantom would be available for PCs running the Microsoft Windows XP Media Center edition;[51] it later indicated this service would be available in March 2007, after the initially planned November 2006 release of the Lapboard,[52] the service did not materialize when the Lapboard ultimately launched in 2008.

See also

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References

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  1. ^ "Register". Retrieved December 7, 2020 – via Twitter.
  2. ^ Anderson, Nate (June 3, 2007). "True Infinium stories: the $73 million (and counting) Phantom disaster". Archived from the original on March 11, 2009. Retrieved October 1, 2008.
  3. ^ "Phantom Entertainment 2011: Home to the Phantom Lapboard". Archived from the original on December 12, 2013. Retrieved November 28, 2013.
  4. ^ John Callaham (January 20, 2003). "Phantom Interview". HomeLAN. Archived from the original on April 2, 2003. Retrieved February 5, 2012.
  5. ^ Ivan Sulic (January 21, 2003). "Destroy Your Game Systems". IGN. Archived from the original on February 5, 2003. Retrieved February 5, 2012.
  6. ^ Jerry Holkins (January 22, 2003). "Penny Arcade "Dude, Whoa"". Penny Arcade. Archived from the original on April 3, 2014. Retrieved February 5, 2012.
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  9. ^ Svensson, Christian (November 21, 2005). "Bachus Quits Infinium". Archived from the original on September 4, 2012. Retrieved July 23, 2006.
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  49. ^ Klepek, Patrick (January 25, 2006). "Infinium Bags $5 Million". Archived from the original on February 13, 2006. Retrieved July 23, 2006.
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