Tag Archives: psygnosis

The first sign that something might be seriously wrong at Imagine Software greeted game buyers in March of 1984, when the company unexpectedly started slashing prices. They announced that their games would go from the current £5.50 to just £3.95, cheaper than all but the cheapest budget titles currently on store shelves. In doing so, they ignited more than a little consternation in their industry.

Like most industries, that of computer games operated within a framework of tacit agreements about how business should be conducted, and some of the most sacred of these had to do with pricing. Games were arrayed in tiers, with standard full-price titles of the sort sold by Imagine expected to be priced at over £5. From the industry’s standpoint, the danger of going lower was bound up in the stark business reality that prices are always easier to cut than they are to raise again. If one publisher chose to cut their prices below the £5 threshold, they could then force the rest of them to do likewise in order to compete, igniting a dangerous price war that would almost certainly end with the new average prices for games considerably lower than they had been before. And the end result of that situation, most believed, would be lower profits for everyone. Imagine, with their penchant for combining mediocre games with extravagant claims of success, had never been terribly well-liked among their peers. This latest move, it seems safe to say, did nothing to improve their popularity.

But the move made them most unpopular of all with the shopkeepers who sold their games, the very people Bruce Everiss had worked so assiduously and successfully to cultivate the previous year. The Imagine games already on their shelves had been purchased at a wholesale price which assumed they would sell at retail for £5.50, yet the shops would now be expected to price them at just £3.95 — a money-losing proposition. Imagine had done nothing to address this situation; certainly there had been no talk of compensating the shopkeepers. They were, it seemed, expected to eat their losses with a smile and say thank you.

Of course, the deeper question about the price cuts wasn’t the what or even the how of the thing but the why of it. When asked why Imagine was making this move now, Bruce Everiss trotted out a couple of different answers. One was that the games Imagine would be releasing later in the year would be so spectacular that they would render everything that had come before them obsolete; thus the price cuts were a way of clearing out the old to make way for the new. But Everiss also alluded to software piracy, the industry’s ever-present bugaboo, expressing a hope that a lower price would make customers more likely to buy Imagine’s games than to copy them from their mates. This response struck many as the more honest answer, and pointed clearly to a company whose sales weren’t quite as healthy as they claimed them to be.

Indeed, Imagine was focusing more and more on the real or theoretical effects of piracy, throwing around heaps of eye-opening but unsubstantiated figures on the subject, such as the claim that only one out of eight people who played the average Imagine game had actually bought it. To this day, Everiss blames a sudden onslaught of piracy for a collapse in sales, but, given that Imagine’s peers experienced nothing like the same collapse, it stands to reason that there was at the very least a lot more to the story than that age-old software-industry bogeyman. The fact was that whatever cachet the Imagine name still held among ordinary gamers was fast draining away in the face of so many underwhelming releases. When a magazine ran a poll to determine the top-ten worst games for the Sinclair Spectrum, three of Imagine’s made the list. This was one chart Imagine would have preferred not to top.

The questions surrounding Imagine only multiplied when, just two weeks after cutting their prices, they suddenly raised them back to the original £5.50. Pressed again for a reason, Everiss claimed they had listened to the discontent of their peers. “We knew that dropping the price would increase sales, but what we hadn’t bargained for was the industry reaction, which was universally unfavorable, from both the distributors and other software houses,” he said. “The feeling was that if we did do it, it would upset the marketplace to such a degree that it would put many smaller software houses out of business.” Such concern about the fates of other software houses had never been a notable aspect of the Imagine character before, and rang more than a little false now. Far from protecting their competition, Imagine looked more and more like a company searching for a way to save themselves. When the rest of the industry looked at Imagine now, they saw a company with shrinking sales who had tried to remedy the situation by slashing their prices, found it only made their bottom line worse, and hastily reversed course. Once so eminently self-assured, Imagine now seemed to lack the courage of their own convictions as they flailed about in search of the magic bullet that would fix their problems overnight. Some began to make jokes about what they called Imagine’s “nervous pitching,” invoking the name of one of their games: Schizoids.

Had they known the full story behind the pricing schizophrenia, Imagine’s competitors would have been able to enjoy their full measure of vindication along with a heaping dose of schadenfreude. Going into the 1983 Christmas season, which Bruce Everiss had ebulliently declared was going to be huge beyond belief, they’d hatched a plan to squeeze out other publishers by buying up literally the entire production capacity of one of the industry’s biggest cassette duplicators. After all, whatever games they manufactured but didn’t sell that Christmas they’d easily be able to move in 1984; Everiss claimed that year was bound to be twice the year for games that 1983 had been.

It all backfired horribly. Imagine sold far fewer games than they had expected to that Christmas, and then their sales dwindled to the merest trickle in the new year, leaving them with hundreds of thousands of aging games that had never been all that great in the first place piled up in warehouses. When thieves broke into one of the warehouses and left with an alleged £200,000 worth of Imagine cassettes, it came almost as a relief; at least they wouldn’t have to pay the storage bills for them anymore.

The full story of the backfired tape-duplication plot — about as clear-cut a case of karma being a bitch as you’ll find in the history of the games industry — wouldn’t surface for many months. But, try as Imagine might to hide them, other cracks in the facade were continuing to appear in the here and now. Late in 1983, they had signed a high-profile deal worth a purported £11 million with Marshall Cavendish, a major publishing consortium, to provide cassettes full of games and programming tutorials to accompany Input, a slick weekly computer magazine which their new partner was planning to launch in 1984. Imagine had purportedly hired many staffers just to work on the Input project. Yet in that same confounding March of 1984 the deal unexpectedly went away. Once again, Everiss spun like crazy:

The original concept was that these would be average, run-of-the-mill games. As we started developing the games, we put them out to be play-tested, which involves comparing them against the reviewer’s favorite game. So the games were enhanced and so on, so that in the end they became so good that it wasn’t worth our while putting them out through Marshall Cavendish.

Everiss’s claim that Imagine’s games were just too good for the magazine was belied by the rumor that it was Marshall Cavendish who had nixed the deal, after Imagine persisted in missing deadlines and delivering substandard work.

Other unsavory stories swirled around Imagine and the Guild of Software Houses, an industry advocacy organization similar to the Software Publishers Association in the United States. GOSH, it seemed, had inexplicably rejected Imagine’s bid for membership. Everiss claimed it was because Imagine was “too big” for what he described as a “small, mutual-back-slapping organization really.” Still, size hadn’t prevented the likes of Thorn EMI from being accepted by the Guild. Did GOSH know something about Imagine that most people didn’t?

Still other past events were cast in a different light by these developments. Just after Christmas, Stephen Blower’s Studio Sing, the advertising agency formed to manage Imagine’s public relations, had suddenly gone bankrupt, leaving behind some £90,000 worth of Christmas advertising bills that were still unpaid to them by Imagine and that thus also now went unpaid to the magazines which had run the spots. A healthy and ethical Imagine, it seemed to the magazines who were being stiffed, might have made the payments directly to them. But they did no such thing.

Word on the street in Liverpool had it that Imagine’s managers had contrived to starve Studio Sing in an attempt to force Blower to relinquish his 10-percent stake in their company, only to find that Blower preferred to let his agency die rather than give in to the bullying. It all sounded plausible enough — but maybe the real reason Studio Sing had been starved, murmured a few, was far simpler: maybe Imagine just hadn’t had the £90,000 to pay out in the first place, and had engineered the agency’s failure as a way to dodge their debts. Whatever the reasons behind what transpired, an embittered Blower was left holding the bag:

Imagine tried to accuse me of certain things that I didn’t do. For instance, they said I was detrimental to the company’s image and that I was booking advertising that wasn’t wanted. I was accused of stealing, or misappropriating, £10,000, and my wife was accused of being incapable of keeping the books at Studio Sing.

They were obviously after my 10 [percent]. Imagine owed Studio Sing £89,000, so the way I see it is they attempted to brush that debt under the carpet. The allegations were just an attempt to condone their actions. I was probably the only one at Imagine who stuck to what he was best at doing.

With the stubborn Blower refusing to exit the scene, Imagine now had a shareholder at open war with his colleagues — although Blower, owning just 10 percent of the company, couldn’t do much to affect its direction. He would soon have cause to wish he had given up his stake when asked and gotten out of Dodge while the getting was good.

Behind their public image of cheeky Scousers who had made it big, Imagine was developing a reputation as a very nasty place, replete with fractious infighting and rampant paranoia. When Alan Maton, a Bug-Byte veteran who worked briefly for Imagine as well, left to start a software developer of his own, Dave Lawson allegedly subjected him to such a campaign of invective and harassment that he was forced to seek the protection of a restraining order. After Colin Stokes, a sales manager for Imagine, left to join Maton’s new company, he claimed that Lawson and Mark Butler had bugged his phone upon classing him as an “unreliable,” then thrown into his shocked face verbatim transcripts of his betrayal in place of a conventional exit interview; he was forced to run for the door amidst a hail of insults and legal threats. Incredibly, the one and only issue of Imagine’s fan newsletter — another initiative that was launched with great hoopla and then abandoned as too much trouble to be worth continuing — published samples from the telephone transcripts, claiming that there were 60 more pages of same where these had come from, a petty and potentially actionable public airing of dirty laundry.

Legal threats were becoming something of a way of life for Imagine. When Your Computer magazine — who, perhaps not incidentally, had been among those hounding Imagine for unpaid advertising bills — printed a listing for a game that Bruce Everiss judged to be too similar to one of Imagine’s, the latter whispered darkly that he had his solicitors “looking into the matter.”

Rumors spread that the company as a whole had been split into two camps, with Everiss and Butler leading one faction and Lawson and the recently hired Ian Hetherington, Imagine’s financial director and emerging fourth principal power, leading the other; this split accounted for much of the mixed messaging on things like a pricing strategy. When a journalist from Crash magazine spent a day at Imagine for a profile piece, Lawson and Hetherington never showed up for work at all and Butler only popped in for a few minutes, leaving their would-be interviewer to spend most of the day in the company of Everiss. When the final piece appeared, filled for understandable reasons mostly with Bruce Everiss quotes, the journalist got an irate phone call from a jealous Mark Butler, asking why his article had made it sound like Everiss ran the whole company.

Through it all, Imagine’s hype machine was still cranked up and spewing. Hype was, after all, the one thing Imagine had always done best. Almost drowning out all of the other mixed signals in the press was a new campaign for what Imagine liked to call “megagames.” These were nothing less than the amazing new things that Imagine had, according to one of Everiss’s accounts anyway, slashed prices to make room for. They now took center stage in Imagine’s advertising, a publicity blitz for as-yet nonexistent games the like of which the industry had never seen. The magazines, not wanting to be left out in the cold if the megagames did indeed blow up huge, accepted these latest advertisements even after having been stiffed the last time around.

It was very hard to determine from the advertisements, or even from talking to Imagine directly, exactly what a megagame would be. Everiss claimed they would be packaged far more elaborately than was the norm in Britain at the time, more in keeping with the games companies like Infocom and Origin were selling in the United States. (He was keenly aware of the state of games across the Atlantic, having been a regular visitor to American trade shows since the late 1970s.) Yet improved packaging was by no means the sum total of the megagame proposition. More intriguing was the prospect of some sort of machine-enhancing hardware add-on that would be included in the box. “We’ve gone as far as we can on these machines given their hardware capabilities, and we have come up with a way of increasing the power of the machine,” said Everiss. “It is not done through software.” Imagine’s games were hardly noted for pushing the capabilities of existing machines all that hard; games coming from competing houses regularly gave the lie to Imagine’s claim of having gone “as far as we can” with current hardware. Nevertheless, this hybrid software/hardware approach was certainly intriguing.

And yet the question remained: what would the megagames be like to actually play? Imagine was frustratingly vague, leaving one with the impression that they were either incredibly cagey or that they themselves didn’t quite know what they were making. All they ever clearly said was that the megagames would be great. Bruce Everiss:

The thing about it is that the game is so big and complex and involved — and it contains several new areas, things that have never been done before. We aren’t going to release it until it’s perfect. The only analogy we can use without giving the game away is that it’s going to make anything that’s gone before look like Noughts and Crosses.

No one’s even seen them yet! They’re so secret that most people at Imagine know nothing about them. Even the people who are working on the project only know sufficient to do their own piece of the work. We give them information on a “need to know” basis. What we’re worried about is somebody else finding out what we’re doing and emulating it.

You don’t have a score, you don’t have levels, you’ve gone completely beyond all that. You wait and see. You’ll be phoning me up when you get them, saying “Brucie was right!”

The price Imagine planned to charge for all this awesomeness just kept going up. Starting at £15, it rose to £20, then to £30, then to £40 — almost eight times the price of the typical new game. “It’s got to be something extraordinary to sell for that price,” said one skeptical distributor. “We’ll just have to wait and see.” “Imagine are claiming these programs are completely innovative,” said another. “If that’s the case, it’s marvelous and good for the industry.” The problem, of course, was that very big “if” which began his thought. Once you cut through all the hype, Imagine’s track record at making innovative games wasn’t very good. Undaunted, they said that the first megagame, to be called Bandersnatch, would be out that summer, and that the next, Psyclapse, would ship well before Christmas.

Many years later, Bruce Everiss would admit to much of the real thinking behind Imagine’s drive to include hardware with their games: “The megagames were an attempt to make our games copy-proof by incorporating a ‘dongle’ that plugged into the back of every customer’s computer.” Only afterward did Imagine’s programmers hatch a scheme to build 64 K of ROM memory into the dongles to supplement the 48 K of RAM in the Sinclair Spectrum, allowing them, theoretically at least, to make games that were much bigger than the norm. Unfortunately, the company, not being home to any hardware engineers, was very ill-equipped to see such a scheme through.

Then, in the midst of all this swirling chaos, the BBC arrived on the scene.

Commercial Breaks director Paul Anderson had first taken note of the emerging computer-game industry very early in 1984, judging it to be a natural subject for an episode of a television series about British entrepreneurs and emerging markets. Flipping through the computer magazines, he saw that one company had the slickest, most elaborate, and most extensive advertising campaign of any of them: Imagine Software. It didn’t take long to connect Imagine with the minor media celebrity Eugene Evans, whose story Anderson, like just about everyone else who had picked up a newspaper during the previous year, had already read. Choosing Imagine as one of his two case studies — the other would be Manchester’s Ocean Software — he made the trip to Liverpool to discuss the idea in person with Butler, Lawson, Everiss, and Hetherington. He didn’t anticipate a lot of problems getting them to agree. Anyone who knew anything about Imagine knew that they loved publicity, and the publicity possibilities for a British computer-game publisher in 1984 didn’t come much bigger than a starring role in a BBC television program. Much to Anderson’s surprise, though, the foursome proved initially reluctant to commit themselves. They had, as we’ve already seen, plenty of reasons not to want to allow any outsider unfettered access to all that was going on internally. It was Dave Lawson who finally turned the tide in Anderson’s favor. Whatever concerns his colleagues might have, he couldn’t resist the lure of having Imagine strut their stuff as Liverpool’s next Beatles on such a grand stage as this. This opportunity, he said, was just too huge to turn away.

When he showed up with his film crew some weeks later, Anderson’s director’s eye was first struck by what a great shooting location Imagine’s spacious accommodations were. The bustling warren of offices and cubicles smacked more of a well-heeled stockbroker than a small 18-month-old technology company. The BBC crew took the requisite time to gawk at and to shoot video of the Ferraris and BMWs that filled the parking garage alongside the star of the vehicular show, Mark Butler’s hand-built Harris racing motorcycle. Butler, Anderson learned, had formed a motorcycle-racing team along with some other like-minded Imagine people. The film crew dutifully followed them out to the Isle of Man for the TT Race, where Butler promptly crashed his bike attempting a reckless maneuver and was carried off to the hospital.

In the beginning, Anderson had no reason nor any desire to be skeptical of the success his subjects claimed to be enjoying. Not being all that plugged-in to the home-computer scene, he knew nothing of the rumors about Imagine. And anyway, the whole point of the program he worked for was to tell positive stories of modern British entrepreneurship, not to scandal-monger. Yet it didn’t take him long to pick up the feeling that, despite all the outward trappings of a booming company that surrounded him, something here didn’t quite add up.

His suspicions were first aroused by Eugene Evans, Imagine’s alleged wunderkind programmer. In an episode whose associations must have thrilled the Beatles-obsessed Dave Lawson — and that, indeed, may have been planted in the press by him or Everiss — Evans had been in the news recently for supposedly leaving the Imagine band to make a go of it as a solo artist, only to be lured back into the fold by the entreaties of his mates; shades of George Harrison walking out on the Beatles for a few days back in 1969. Asked whether the rumors about his brief departure were true, Evans, still playing his role superbly, had said in his best cheeky Beatle fashion, “I may have done. There again, I may just have gone on holiday.”

Anderson was naturally eager to spend time with Evans, whereupon he immediately noted the discrepancy between the teenager’s hype and his reality. His treatment around the office hardly fit the profile of Imagine’s star coder; in reality, he didn’t seem to be regarded by the other programmers as all that important at all. And, the leased Lotus in his driveway notwithstanding, he didn’t seem to live like a young man who was earning thousands of pounds every month.

Imagine’s official line had it that Psyclapse, the second of the megagames, was essentially Evans’s project. Perhaps Anderson shouldn’t have been surprised, then, that not much of anything seemed to be happening on that front. John Gibson, Imagine’s other star programmer, did seem to be working hard on Bandersnatch, but few others seemed to share his dedication. In fact, very few of the technical and support staff seemed to be working all that hard on anything at all. Management, meanwhile, was most focused, predictably enough, on all the PR trappings that would surround the megagames. Sitting in on meetings, Anderson learned of a scheme to have Imagine and their megagames commemorated forever via two marble slabs that would be laid in London’s Hyde Park; one couldn’t help but wonder what opinion the authorities who ran the park, whom Imagine had apparently not yet gotten around to contacting, might have thought of the plan to immortalize Imagine Software alongside the likes of the Duke of Wellington. Anderson heard far more discussion about what the megagame boxes should look like than he did about the actual games the boxes were to contain. Imagine had managed to contract with Roger Dean, an artist quite famous in certain circles for the surrealistic album covers he painted for Yes and other progressive-rock bands, to do the box art for the megagames. They were thrilled to have him, as they were thrilled with any public connection they could foster between their company and rock music. Still, there was considerable grumbling that Dean had demanded his £6000 fee be paid up-front. Anderson, by now thoroughly suspicious of his bright young sparks, remembers thinking that Dean was a very wise chap.

Imagine, Anderson was gradually coming to realize, was living on a diet of denial and wishful thinking. Already on April 16, 1984, before the BBC had even started filming, Cornhill Publications had submitted a petition at court to have Imagine forced into bankruptcy if they continued to leave unpaid a massive advertising bill. That June, just a few days before the BBC followed Butler out to the Isle of Man to watch him living his fantasy of the daredevil playboy, Imagine had been in court to argue against the petition, with scant evidence to hand to support their claim that this was just a bump in the road and they would soon be a viable business again — if, indeed, they had ever been a viable business in the first place. Shortly thereafter, Butler, Lawson, and Hetherington all disappeared entirely. The first of these had an excuse, being in recuperation after his motorcycle crash; rumors swirled that the latter two had actually fled the country to dodge the fallout from Imagine’s imminent demise. Only Everiss was left, still coming into the office every day out of some sense of duty.

By this point, those who remained were spending their working days watching videos, playing games, and generally goofing off, apparently determined to enjoy their brief taste of the good life as much as they could before the inevitable. Anderson would later compare these last days of life at Imagine to the desperate decadence of the final days inside Hitler’s bunker as the Soviet tanks closed in on Berlin. When he was asked why no one ever seemed to be available to talk to the BBC cameras anymore, Everiss answered thus:

Well, there was a whole pile of people just playing games there, and they’re hiding from the camera. If you go round the corner here, by the exit, you’ll find there’s a big pile of fire extinguishers because there’s been fire-extinguisher fights all week. That’s been the main event.

The only outsiders still knocking at the door all seemed to be trying to get someone to pay them the money they were owed. Anderson’s film crew captured a man from the cassette-duplication plant whose capacity Imagine had bought up the previous Christmas wandering forlornly about the premises, trying to get someone — anyone — to at least talk to him about the £60,000 his company was still owed. Trying to put a stop to the stream of dark-suited, grim-faced men who lined up to knock at their door each day, Imagine sent out a letter to all their creditors claiming they expected a windfall of £250,000 from some unspecified source within three weeks. The creditors, naturally, didn’t believe them, and the grim-faced men just kept coming, asking fruitlessly for face time with someone — with anyone.

The creditors had still more cause for alarm when it was announced that Beau Jolly, a publisher of discount game compilations, had bought the entire extant Imagine games catalog. This may have been the windfall Imagine had vaguely referred to in their letter to their creditors, although it seems doubtful that Beau Jolly paid them anywhere near £250,000 for their collection of aging, unimpressive games. The transaction prompted alarm rather than hope in the hearts of Imagine’s creditors because the games were assets that in the event of what now seemed the certainty of an Imagine bankruptcy could be sold off to reimburse said creditors. It all rather smacked of a management team trying to get what they could out of the company for themselves while they still had the chance, especially as no offers came forth to pay any of their bills in the aftermath of the sale. In what had long since become a typical scenario for anyone who got into bed with Imagine for any reason whatsoever, even the catalog’s purchaser was soon left feeling disappointed and betrayed. Colin Ashby, Beau Jolly’s managing director:

To be honest, I’m not very happy with the deal. We’re still waiting for the master tape of PC Bill, and I’m not convinced we’ve got everything we agreed to. We weren’t paying over money just for old stock. The idea was to invest in the new games as well, but I think something’s gone wrong. I’ve been trying to get Lawson, Butler, or Hetherington for weeks because we thought we were doing the new games as well in this deal. But I can’t get hold of them.

It really did seem like everyone who was ever foolish enough to make a deal with Imagine wound up in a plaintive state like this one. When someone mentioned to Ashby that the shareholders’ real motivation for selling off the catalog may have been to get money out of the company while they had the chance, it all suddenly made more sense to him: “What a revelation! I hadn’t thought of that.”

Despite his prominence, Bruce Everiss owned no stock in Imagine, and thus was somewhat insulated from the slow-motion car crash happening around him. With his colleagues having abandoned him to the creditors and the BBC, he was increasingly willing to dish the dirt, even as he endeavored to distance himself from what was now looking more like a full-on financial scandal than just another failed company. He made the incredible claim that Imagine had never paid any tax whatsoever on their earnings — indeed, had never even filed a tax return. That was supposed to be the department of financial director Ian Hetherington, but the latter had always been — perhaps, it now seemed, for good reason — the most inaccessible of all the principals to Anderson. And now, like Butler and Lawson, Hetherington had simply disappeared. Everiss declared all three of them “cowards.” “It makes me sick,” he said, “to think that the people who have worked so hard to make the wealth of Imagine have been left high and dry while the directors of the company have stripped it bare and got away scot-free. They did everything to line their own pockets.”

Everiss was plainly protesting a bit too much, given that he too hadn’t hesitated to drive a Ferrari on Imagine’s dime, and given that the “wealth” of Imagine had never really existed in the first place. The story of Imagine Software wasn’t that of a company that was hugely successful and then collapsed so much as it was that of a company that had been built on smoke and mirrors — verging on outright fraud if not crossing that line — from the very beginning. Still, at least Everiss was here, facing the music after a fashion — not to mention those ever-present fish-eye lenses of the BBC. Or he was for a while anyway: on June 29, he quit. With him left the last semblance of Imagine Software as a functioning company. Those who remained behind did so only because it was more fun to hang out here than it was at home.

On July 9, 1984, Imagine was forcibly dissolved by order of the court; the proverbial straw that broke the camel’s back was a relatively modest advertising bill for £10,000 to VNU Business Publications, publisher of a short-lived magazine called Personal Computer Games. The long list of other unpaid creditors included Kilsdale, the Gloucestershire cassette duplicator whose capacity Imagine had bought up the previous Christmas; Marshall Cavendish, who were still waiting to be paid back some £250,000 they had given Imagine at the beginning of the cancelled magazine deal; the Liverpool City Council; Henry Matthews and Son, a printer; United Arab Shipping, who owned Imagine’s posh downtown office space; Scalchards, the wine merchant who had catered Imagine’s lavish private parties; G.D. Studios, the agency that had created Imagine’s advertising after Studio Sing had died or been killed; and most of the Spectrum magazines, all clamoring for payment for said advertising. Some of these last, most notably the widely beloved Crash magazine, would later claim that the money they didn’t receive from Imagine very nearly forced them to go under as well. In all, Imagine owed more than £500,000 to the aforementioned entities. When unpaid bank loans, back taxes, and other outstanding government obligations were eventually added to the total, it would reach more than £1 million. Those of you needing help putting these figures in perspective might wish to consider that a typical Liverpool dockworker at the time might earn a salary of about £4000 per year.

Still swaddled in bandages from his motorcycle escapade of a month earlier, Mark Butler chose the day of the bankruptcy order to return to Imagine’s offices. That same day, when the remaining handful of employees and the BBC film crew had all nipped off to the pub for lunch, the bailiffs showed up. When the Imagine people tried to reenter the premises, they found the door locked to them, and Anderson hastily signaled his crew to start rolling video. The offices and everything inside them, they were all informed by the bailiffs, were being forcibly repossessed right now for the benefit of Imagine’s many creditors; Anderson had considerable trouble convincing the bailiffs to let him come inside and extricate the rest of his film crew’s equipment from the jumble. The bailiffs also took that most conspicuous of all signs of Imagine’s alleged success: all of their fancy cars. According to Anderson’s recollection, Butler seemed more stunned and dismayed by the loss of his BMW than by anything else that was transpiring. He stood in a daze in the midst of it all, seeming for all the world like he genuinely had no idea how the situation had reached such an impasse.

Which isn’t to say that the rest of the Imagine crew reacted all that much more cogently. If the enduring image of the company’s brief heyday would always be that parking garage full of exotic cars, that of the collapse would be a few dozen confused young men milling around outside a door that had just been locked in their faces, trying to figure out what was happening and what they should do about it — all of it as captured by Paul Anderson’s remorseless cameras. He hadn’t known quite what he might be getting into in making his documentary about the British computer-game industry, but he had certainly never dreamed it would turn out like this. But then, it seems safe to say that those who still worked for Imagine felt much the same way.

Facing a court order, Lawson and Hetherington resurfaced at last for the final winding-up meetings, huddling together in a small room while creditors lined up in the hall outside to state their grievances and request financial redress. In the end, the court managed to recover about £300,000 for them by selling Imagine’s office furniture, computers, and all those exotic cars. Meanwhile the accusations continued to fly among the Imagine principals. Stephen Blower, the one-time head of Studio Sing, filed a criminal complaint against Butler and Lawson for ignoring a court order, issued back in February as a result of the fallout from his agency’s bankruptcy, to remove his name from a £100,000 bank guarantee. Asked directly about the matter, a police spokesman replied in terms that weren’t entirely reassuring if you were Butler or Lawson: “The Commercial Squad does not have warrants of arrest out for any of the directors. It is, however, looking at the case in a wider sense.” Butler and Lawson were eventually found guilty of being in contempt of court, but the judge ruled that he wouldn’t send them to prison or fine them if they would now remove Blower’s name as previously agreed and pay his legal fees. This latter they presumably finagled a way to do, as the matter then disappeared from the press.

As the fallout from Imagine’s messy end continued, Paul Anderson had retired back to London to put his documentary together. The finished product, which first aired on BBC2 on December 13, 1984, is as fascinating as it is frustrating. This being an era well before video became ubiquitous, we have precious few similar glimpses into the vintage British games industry. The documentary would thus be of interest even had it not involved such a storied crack-up as Imagine’s. Yet Anderson’s hands were tied to a large extent by the strictures of the Commercial Breaks series for which he had shot his video, with its 30-minute running time and its brief of presenting an essentially positive, upbeat take on modern British entrepreneurship. These factors dictated that he include barely ten minutes of the reported many hours of footage he had shot in and around Imagine; Ocean Software, a far less high-profile but also a far more successful operation, got the balance of the program’s running time. (The television critic for the Times of London hilariously described the two companies in Commercial Breaks as a contrast between “much skin cream, little aftershave” on the one side and “receding hairlines, spreading waists, grit of experience” on the other.) It’s likely that the rest of the Imagine footage, which would have been seen by the BBC’s management at the time as the leavings of a minor episode of a minor, ephemeral program, was destroyed long ago. So, we must content ourselves with what we have.

Few would shed any tears for Imagine Software. Competitors, creditors, and even more than a few ordinary gamers who had been burned by the mismatch between Imagine’s hype and their games’ reality rejoiced to see the company’s humiliating comeuppance on national television. As a final ironic note, Ocean Software, Imagine’s companion company in that episode of Commercial Breaks, wound up buying the name, which they judged to still have cachet in some Continental markets. In British gaming circles, however, the name of Imagine was destined to remain synonymous with hubris, greed, tomfoolery, and plain old dishonesty, and for very good reason.

In the wake of Imagine’s collapse, people were left to wonder how it could possibly be that this group of clueless, vindictive naifs could have enjoyed the trappings of success for as long as they had — could, for that matter, have ever enjoyed the trappings of success at all. Imagine’s story is one of those which come along every once in a while to illustrate how much of business — and, indeed, society — is ordered not so much by rigidly stipulated, explicit rules as intuitive, implicit norms of behavior. When a company like Imagine comes along, willing to violate all of those norms, it can take the people around them considerable time to catch on. Imagine’s name proved ironically appropriate: the entire company, the entire Imagine “boom,” was a supreme act of imagination on the part of those — and by no means does this group consist entirely or even mostly of those who actually worked at Imagine — who desperately wanted the dream to be true. Imagine told people they were successful, and people believed them, and so in a sense they did indeed become successful — for a time.

Anderson’s own final take on what he had witnessed over the course of his weeks in Liverpool was far less harsh than that of many others:

It was a fascinating time in a city at the focus of the software business. It’s a shame it all fell apart. There were a lot of talented people there who were let down. It’s a bit like a movie that never got made, all the technicians and all the energy, but the producers failed. It’s going to be interesting to see what will come of them all.

After such a spectacular fiasco as this one, you might expect the people who had made Imagine to hide themselves away in shame. But of course they weren’t that sort of people. On the contrary: most of the people who built Imagine and then burned it to the ground were destined to remain around the games industry for a long time to come. Only Mark Butler, something of an innocent soul at bottom, a fellow who had always seemed almost as over-matched as had been Eugene Evans for the role that was thrust upon him, went at all quietly into that good night, starting a non-gaming software business with his father.

Out of everyone involved with Imagine, it was Eugene Evans who seemed most doomed to fade back into obscurity. He had already entered the media’s “where are they now?” file by the beginning of 1985, when Your Computer reported that he had been forced to trade his famous Lotus for a second-hand Volkswagen Beetle; on the plus side, he could at least actually drive his latest car, having finally gotten a license. But Evans wound up surprising everybody. He went into the management side of the videogame business, a role for which he was far better-suited than that of programmer, and rose through the ranks to become a vice president at Electronic Arts, his brief period of celebrity as Britain’s Teenage Hacker Extraordinaire a mere footnote — an anecdote to share at parties — to a long and successful career.

Some of the other members of Imagine’s old programming staff, including John Gibson, went on to form a development studio of their own called Denton Designs. Without, as they put it, “people of the caliber of Bruce Everiss to cock it up for us,” they established a pretty good reputation, particularly as a maker of the British specialty that was action-adventures, surviving well into the 1990s.

For his part, the indefatigable Bruce Everiss wasn’t about to relinquish the spotlight, even if his choices in business ventures often remained problematic. He first reemerged as an enthusiastic spokesman for the Oric Atmos, an ill-fated attempt to challenge the likes of Sinclair, Acorn, and Commodore in the British home-computer market. After that effort went bust, he formed his own software company, Everiss Software, for just long enough to release a single mediocre game — the unfortunately named Wet Zone — for the BBC Micro. He then moved on to the new budget publisher Code Masters, whom he helped to create a new image for what used to be the dregs of the games industry, the titles on the £1.99 racks. But he remains most proud of having founded the All Formats Computer Fair, a series of events that ran for many years in Britain and helped to reconnect him to his roots as a tireless promoter of computing for the people — an aspect of his makeup that had, like so much else, rather gotten lost amidst all the hype of Imagine Software.

So, Bruce Everiss’s real achievements both before and after his involvement with Imagine are considerable. Yet even before the final collapse of Imagine he began engaging in an often-tortured exercise in triangulation with regard to what still remains for many — fairly or not — his most memorable legacy. He wishes to take credit for the new standards of presentation and advertising he installed at Imagine and for the distribution inroads he engineered, all of which had a major impact on the British games industry as a whole, while separating himself from the excess, waste, foolishness, and sheer incompetence that are an equally indelible part of the Imagine story. “Comparatively little was spent on advertising,” he stated in 1984 in an attempt to minimize his own culpability in Imagine’s legendary profligacy. One suspects that the many magazines who were stiffed for tens of thousands of pounds each by Imagine might beg to differ. (Then again, since Imagine for the most part never actually paid their advertising bills, maybe his claim is perversely true…)

Threading the needle of innovation and complicity at Imagine has led to changing messages over the years. In an opinion piece that took the form of a letter to Eugene Evans which he wrote for Your Computer in 1986, Everiss tried to disavow his role in sculpting the latter’s persona for public consumption, blaming it on his colleagues at Imagine in the abstract whilst indulging in a cruel and pointless critique of Evans’s coding skills while he was at it:

Imagine seized on you as a PR opportunity. The story of a working-class teenager earning a fortune in Liverpool was a natural for the mass media. You had a fleeting fame in newspapers and on television, with strong undertones of John Lennon involved. What you didn’t seem to realise is that Imagine didn’t do it as a favour for you, they did it for themselves. In fact, what they did for you was the exact opposite of a favour.

Back in reality, you wrote a simple game on the 3 K VIC called Wacky Waiters that was just tolerable. Catcha Snatcha which followed was unplayable. Frantic was so bad the company had to withdraw it. Then you converted to the Commodore 64 with an attempt to put Arcadia on it; it was a travesty.

The last few months at Imagine were wasted playing around while pretending to work on a game called Psyclapse. All these attempts at programming were on the relatively simple 6502. You never could handle the more complex Z80. The 68000 must seem as difficult as playing Rachmaninoff backwards on a mouth organ.

Yet, when interviewed for a 2012 book-length history of the British games industry, Everiss was back to being the proud Svengali, thrilled to take all the credit for his greatest personal marketing creation. He claimed that all of the aspects of the Eugene Evans persona that the media latched onto were consciously crafted by him and him alone to make them do just that. Tellingly, the only person who ever publicly compared Evans to John Lennon was Everiss himself. All these decades later, one does have to wonder why Everiss and his colleagues won’t simply admit that they were foolish lads who got carried away and made heaps of awful choices. Few would continue holding a grudge; given similar circumstances, I and plenty of you reading this today likely wouldn’t have done any better at their age.

But, again, neither Eugene Evans nor the rest of the deceptions Everiss indulged in with his colleagues at Imagine should be taken as the sum total of the man’s long career. Something that can easily get lost in an article like this one is the extent to which Everiss did succeed in turning humble Liverpool into one of Britain’s biggest hotbeds of game-development talent. Evans’s replacement in the popular press became Matthew Smith, a Liverpudlian programmer and Microdigital regular who had the advantage over his predecessor of being every bit as brilliant as his press notices would have him be. His games Manic Miner and Jet Set Willy, the former published by Bug-Byte, were a sensation in Spectrum circles at the very time Imagine was imploding, and Smith himself became almost as big a mass-media celebrity as Evans had been. Imagine may have died, but Liverpool-based game development would live on.

As would the final two major players in the Imagine saga. For even as Imagine was burning down around them, and even as Everiss was already working to lay the blame elsewhere, Dave Lawson and Ian Hetherington were also working hard — working on a scheme to birth a phoenix out of the ashes.

(Sources: the book Grand Thieves and Tomb Raiders: How British Videogames Conquered the World by Rebecca Levene and Magnus Anderson; Computer and Video Games of February 1984; Home Computing Weekly of March 20 1984, April 3 1984, December 4 1984, and February 13 1985; Personal Computer Games of March 1984, May 1984, June 1984, and July 1984; Your Spectrum of June 1984; Crash of August 1984, January 1985, and February 1985; Popular Computing Weekly of July 5 1984, July 19 1984, August 9 1984, October 4 1984, December 13 1984, and December 12 1985; Sinclair User of September 1984, October 1984, January 1985, and July 1985; CU Amiga of September 1992; Your Computer of November 1984, March 1985, and January 1986; Times of London of October 16 1984 and December 13 1984. See also Bruce Everiss’s “A History of the UK Video Game Industry Through My Eyes,” parts 1 and 2. The Commercial Breaks episode on Ocean and Imagine is available on YouTube.)

Once upon a time, the BBC played host to a half-hour current-affairs program called Commercial Breaks, which endeavored to document innovative businesses and emerging markets in Margaret Thatcher’s new, capitalist-friendly Britain. In April of 1984, Paul Anderson, one of the program’s stable of directors, began to shoot an episode about the computer-game industry, as seen through the eyes of Liverpool’s Imagine Software and Manchester’s Ocean Software. These two Northern software houses, each situated in a city that had been struggling mightily in recent years, had been specifically chosen to drive home the point that the craze for microcomputers and computer games was a national one rather than just a hobby of posh Londoners. Computers were transforming the way British youth from the Shetland Islands to Cornwall spent their free time, and computer games could earn those entrepreneurs who were successful at selling them millions of pounds. This, went the message from Thatcher on down, was an area where the new Britain stood poised to excel.

Whether by chance or design, the two publishers chosen for the program could hardly have been more different. Ocean was a quietly shipshape little operation, run by a balding fellow named David Ward who looked and talked more like an accountant than a brash entrepreneur. No matter: Imagine had brashness enough for both. The company’s absurdly young management and staff had been all over the tabloid media for months with their exotic sports cars, their extravagant claims about the money they were raking in, and an anti-establishment take on capitalistic excess worthy of rock stars.

Paul Anderson thought he was making a light documentary about an emerging business sector. But what he would end up with, at least for the part of the program devoted to Imagine, was something else entirely. Some fifteen years before Anderson started shooting his program, Michael Lindsay-Hogg had begun making a documentary about Liverpool’s four most famous sons as they went into the studio to record their latest album. Meant to show the Beatles’ triumphant return to playing together as a live band, the prelude to a major tour, Let It Be had instead wound up chronicling their demise for all the world to see. Now, sent to Liverpool to document the life of a vibrant young company, Paul Anderson would similarly wind up shooting its death, capturing for posterity on videotape the first notable instance of a game studio with a line of credit longer than their common sense imploding in spectacular fashion.

Yet what would follow said implosion would be in its way even more remarkable than all the excess and foolishness that had led Imagine to such an unhappy ending. For out of the ashes of Imagine Software would be born one of the most iconic British game makers of the latter 1980s and 1990s. Psygnosis, the direct heir to Imagine, would take an owl as their logo, but a better choice might have been a phoenix.

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Back in 1961, one Brian Epstein had run a record store on Great Charlotte Street in downtown Liverpool, just blocks from where Imagine’s sprawling offices would be located 22 years later. Hearing his teenage customers talking more and more about a local beat group called the Beatles, Epstein finally made the ten-minute walk to the Cavern Club to hear them play a lunchtime concert one gray November day. Smitten immediately, he took on the role of the Beatles’ manager, bringing order to their chaos and transforming his four leather-clad proto-punks into the cheeky but lovable Fab Four that would go on to conquer the world.

For a few brief years thereafter, Liverpool had taken an unlikely place at the center of international pop culture, with Londoners suddenly trying to perfect Liverpool accents instead of the other way around, with teenagers from all over the world descending on the city en masse to see the place that had spawned their four youthful gods who still walked the earth. But the good times, alas, didn’t last for very long.

Liverpool had always been a rough-edged working-class city, but life there after the breakup of the Beatles in 1970 got harder for many of its inhabitants than anyone could remember. Britain as a whole had a very rough go of things during the 1970s, a decade marked by constant strikes, runaway inflation, and breakdowns of basic services like shipping, garbage collection, and power production. And as the country went, so went Liverpool, only with all the negative numbers multiplied by five or so. A moribund national economy meant a dramatic slowdown in the import and export of goods, any port city’s lifeblood. The advent of containerized shipping meant that thousands of dock-working jobs — relatively good-paying, unionized jobs — disappeared. Unemployment soared, and whole districts of the city filled up with dead-enders resigned to life on the dole, while huge swathes of the dockside area turned into a no man’s land of empty warehouses and rusting equipment, inhabited only by the homeless and the rising criminal class. Parts of Liverpool came to resemble a war zone.

In this environment, heaps of Liverpool youth still dreamed of using rock and roll as a means of escape, resulting in a local music scene that was as vibrant in the 1970s as it had been back in the 1960s — even if it no longer dominated the international charts like it once had. Yet music alone could hardly cure what ailed the city — not anymore, not this time. Liverpool’s next Brian Epstein would have to take a different tack.

In 1978, another young businessman opened a shop of his own very close to where Epstein’s NEMS record store had once stood. Trailing Silicon Valley’s famous Byte Shop by less than three years, Bruce Everiss’s Microdigital, located on Dale Street in the heart of Liverpool, was by some accounts the first specialized computer retailer anywhere in Britain. In the beginning, Everiss mostly sold the handful of build-it-yourself kit computers that were the only models available from British manufacturers; for the well-heeled, he imported a trickle of pre-assembled but expensive Commodore PETs from the United States. Much of his business was conducted via mail order, feeding the needs of hobbyist hackers all over the country.

Everiss was very aware of the problems plaguing his hometown, and had founded Microdigital with the intention of doing something about them. A committed backer of Margaret Thatcher from well before her ascent to prime minister in 1979 — in temperament and rhetoric he was a veritable prototype for Thatcher’s school of New British Entrepreneurs — his personality reflected a somewhat odd mixture of businessman and social crusader. For all of Liverpool’s well-documented problems, the city was also home to major electronics manufacturers like Plessey and Marconi, while the computer-science departments at institutes like Liverpool University and Liverpool Polytechnic were among the most respected in the country. Microdigital could be a bridge between the worlds of big business and academia and that of the street — the working-class heart of Liverpool.

Like so many of his fellow Liverpudlians, Everiss too took the legend of the Beatles to heart. Yet he did so in a more tangential fashion, seeing what had happened during the 1960s more as metaphor than blueprint. He believed the emerging computer industry could be to the Liverpool of the 1980s what music had been to the town of the 1960s. Seeing computers as a way off the dole for Liverpool youths with few other prospects, he made community outreach one of his shop’s most important missions, donating equipment to worthy causes like the computer courses that were run out of the Victoria Settlement, a local youth charity. Those same youth were always welcome in his shop, allowed to hang out there, learn a bit about programming, and play with computers they couldn’t possibly afford. An inveterate scenester, Everiss was fostering a real computer scene in Liverpool to go along with the city’s long-established musical tradition. And Ground Zero of this burgeoning computer scene, its version of the Cavern Club, was his little shop on Dale Street. The hangers-on there who showed the most potential could hope to become his employees.

Mark Butler was one of these lucky ones, an unusually personable “cheeky-chappy salesman type,” after Everiss’s description. He eventually became the shop’s day-to-day manager, freeing up his boss to focus on strategy.

One day in the summer of 1979, a curious 19-year-old named Dave Lawson wandered into the shop. Like non-musical Liverpool youths from time immemorial, he had gone to sea two years before, joining the merchant navy as the only other obvious escape from the workaday drudgery that was the lot of so many of his peers. But life at sea hadn’t agreed with him either, and he’d found himself back in his hometown and rather at loose ends: living with his parents, working odd jobs, and hitchhiking around Western Europe whenever his finances allowed. When he saw an advertisement for a Nascom kit computer in Electronics Today, it spoke to him for some reason he couldn’t entirely explain even to himself. Instead of hitting the road again with his meager savings, he carried it into Microdigital and walked out with his first computer. He took to it like a natural. He claimed it took him a week to learn machine language: “I didn’t bother with BASIC. I couldn’t see the point.” He became a regular at Microdigital, meeting Mark Butler there for the first time while playing a game of Star Raiders on one of the shop’s computers. “Good game,” said Butler. “I’m going to write one much better,” said Lawson. Everiss too was soon very aware of this new kid, who struck him as “very intense and very bright.”

Microdigital seemed successful enough on the surface, but, in what would be a common theme throughout Everiss’s business history, the shop never managed to make much if any money, doubtless thanks not least to all the extracurricular scene-building activities. Everiss sold it in July of 1980 to Laskys, an electronics chain with shops across Britain and Western Europe that had heretofore specialized in high-end stereo equipment; now, seeing a similar demographic of young men with money on their hands uniting the audiophile and computer-hobbyist markets, they were interested in branching out into computers as well. As part of the terms of sale, Everiss was required to stay on as a general manager for two and a half years. Over the course of that period, Laskys spread the Microdigital name across the country, first in the form of kiosks in existing Laskys shops, then as free-standing shopfronts of their own. A proud Scouser, Everiss was thrilled to be able to say that this expanding nationwide enterprise had its roots in humble Liverpool.

But Microdigital wasn’t the only enterprise that was growing as a direct result of Everiss’s efforts. Exactly one year after Laskys purchased Microdigital, a couple of Oxford University scions named Tony Baden and Tony Milner moved to Liverpool with their company Bug-Byte, the first British software publisher truly worthy of the name. They set up their new offices just around the corner from Everiss’s shop. Drawn to that location as much by Liverpool’s growing national reputation for being a well of self-taught programming talent as they were by the cheap rents, Bug-Byte grew to twelve employees within a year of their arrival. These had an average age of 19, and virtually all of them, along with many of the free-lance programmers whose games Bug-Byte churned out by the handful, were recruited from the floor of Everiss’s shop. Indeed, the two Tonys themselves fell under the sway of Everiss, who had big ideas about the future of consumer software, as he did about so many things. Just as the record collection of most music fans was worth far more than the stereo used to play it, he expected the software industry soon to dwarf the market for computer hardware.

Sometimes Everiss’s translations from the world of music to that of computer games could be almost literal. Taking the role of Bug-Byte’s marketing consultant, he convinced them to upgrade their packaging, fashioning full-color inlays for their cassette-based games that made them at a glance indistinguishable from a new pop album. The two Tonys came to sound like echoes of their marketing advisor, talking endlessly about “presentation” and “advertising” — and, one can’t help but notice, very little about the contents of the cassettes being presented and advertised.

Thankfully, Bug-Byte had recruited some very talented programmers from the Microdigital scenesters. The standout among them was none other than Dave Lawson, who established a reputation for being able to ingest whole the design of a new computer — of which there were many coming down the pipe in those days — and expel a playable game for it in a staggeringly short period of time. When the Commodore VIC-20 reached British shores in late 1981, he was there with a Pac-Man clone called VIC Men, the first third-party game to be published for the machine in Britain. (That game, alas, had to be pulled off the market when Bug-Byte received threatening legal notices from Atari, the holder of the rights to Pac-Man on home computers.) When the BBC Micro started shipping in early 1982, Lawson was there with a simplification of the old mainframe classic Star Trek which he called Space Warp, the first third-party game for that platform. And when the Sinclair Spectrum, the machine destined to become the heart of the British mass market for computer games, appeared shortly thereafter, Lawson made plans to welcome its arrival with a Space Invaders clone called Spectral Invaders. After the first thirteen Spectrums which Sinclair shipped to Bug-Byte all proved dead on arrival — quality control was not one of Sinclair’s strengths — a frustrated Lawson sat down with the machine’s technical manual and wrote his game’s code out by hand. He then typed it in when he finally got a functioning Spectrum, finding that it worked with only minimal alterations. Of such feats are coding legends made. Shortly thereafter, he produced one of the Speccy’s biggest early hits: Spectres, a witty twist on Pac-Man in which an electrician has to lay down light bulbs in the maze instead of eating dots therefrom in order to banish those pesky ghosts.

But Lawson wasn’t happy with the royalties he was getting from Bug-Byte, and so he and his friend Mark Butler decided to strike out on their own as Imagine Software in the fall of 1982. His first time out as an Imagine programmer, Lawson came through once again. Indeed, many will tell you that Arcadia, the first game Imagine released, was the best game they ever released. Another space-shoot-em-up for the Spectrum, this one was more frenetic, more intense, and had better graphics than anything Lawson had done before. “I’d buy it just to watch the graphics,” wrote one reviewer.

Meanwhile Everiss too was getting frustrated with Bug-Byte. The two Oxford boys who had the final say there were far more conservative at bottom than he was. They insisted on going everywhere in the tailored suit and tie of traditional British businessmen, a stance that immediately signaled their difference from the scruffy kids of the Microdigital scene who worked for them. And they balked at Everiss’s more outlandish ideas about populist marketing, like his scheme to hire a slate of sexy models — never mind the cost! — to star in a newspaper-and-television publicity blitz.

By the time the contract binding him to Laskys ran out, Everiss was itching to find a full-time gig with a software publisher who would give him carte blanche to implement all of his ideas about consumer software as the music industry of the future. The nascent Imagine Software, founded by two talented kids whom he knew well and who were accustomed to taking their instructions from him rather than the other way around, seemed just the ticket. Imagine seemed a blank slate waiting for his signature. In January of 1983, he joined the infant company, which at that point still sold Arcadia only via mail-order.

That Imagine shared a name with the most famous song by one of Liverpool’s four most famous sons was no accident. Interestingly, it was Lawson, ostensibly the introverted coder of the trio, who had come up with the name, and, indeed, who was most fond of explicit comparisons with the Beatles in general. But Everiss, for this part, had little trouble embracing Lawson’s vision of turning the company into pop culture’s next Beatles, all the while “taking Scousers off the dole.” No one would ever accuse these two young men — or their third partner Mark Butler — of dreaming small dreams.

They unquestionably had a hot game on their hands in Arcadia, but a hot game alone wouldn’t be anywhere near enough to fulfill the trio’s ambitions for Imagine; that would depend on marketing, distribution, and image-making at least as much as it would on the games themselves. Everiss recognized that the key to making a mass-market phenomenon of computer games was getting them from specialty shops like Microdigital into the mainstream High Street shops. In the Britain of the 1980s, this latter could mean booksellers like WH Smith, consumer-electronics chains like Dixons, even chemists like Boots, all of whom had set up computer kiosks in some of their locations to commemorate 1982, the government’s official and much-hyped Information Technology Year. Continuing the obsession with presentation and packaging that had marked his association with Bug-Byte, Everiss made sure that Imagine’s games wouldn’t look out of place in such environs. Then, using all the insights he had acquired as a retailer, he worked the phones relentlessly to get them onto the shelves in all three of the aforementioned chains. He also called up toy shops, newsagents, and corner shops, offering them freestanding spinners of games they could simply take out of the box and stand up by the door. “Most said get lost, but some would say yes,” he remembers. When those who did say yes started to turn a tidy profit, even the naysayers began to ring him up to change their tune. In small towns and villages all over Britain, Imagine games, sold from such humble locations as these, were the only ones immediately available to school-age punters during much of 1983. It would take some months for the rest of the industry to catch on to Everiss’s tricks. And by the time the competition did start duplicating his inroads into rural Britain, Everiss had hired people who spoke French, German, Italian, and Spanish, and set them to work getting Imagine’s games into stores on the Continent.

In advertising as well, Imagine set new standards. Stephen Blower, an artist and friend of the core trio, set up an ostensibly independent advertising agency called Studio Sing to manage the company’s public relations, in return for a 10-percent stake in Imagine proper. They would buy six-page spreads at the center of magazines like Computer and Video Games which popped off the page like nothing else between the covers. Almost from the moment that Everiss came on board, the name of Imagine was inescapable in the trade press. “They can only be described as having exploded onto the market,” wrote the magazine ZX Computing.

But that was just the trade press. In keeping with his mass-market ambitions, Everiss wanted to make the name of Imagine Software just as popular in the tabloid press. And the fuel that the tabloids ran on was personality. Newspapers were increasingly full of generic stories of teenage computer geniuses who were making good money out of their bedrooms writing games. If he could give the tabloids a single specific, memorable personality fitting that mold, someone they could really latch onto as the symbol of his generation, Everiss knew that Imagine would be rewarded with a deluge of exactly the sort of press they craved. Yet Dave Lawson, the one person at the company who most obviously fit the role, didn’t relish the prospect, said he was still too busy coding games to take on the full-time job of being the face of Imagine. Meanwhile the more extroverted Mark Butler was, like Everiss himself, a businessman rather than a coder, and that stubborn fact rather took the shine off the prospect of using him for the part. So, Bruce Everiss the would-be Svengali still lacked his star; he was a Brian Epstein without any Beatles of his own. Fine, said Everiss. If he didn’t have a coder star to hand, he would simply have to invent one. Enter one Eugene Evans.

Evans was yet another of those kids who hung around Microdigital, working the occasional Saturday when the shop needed an extra pair of hands, playing with the computers and goofing off when it didn’t. Only 16 years old, he’d learned a bit of coding, but was far from brilliant at it; mostly he just liked to play the latest games and chat about them with the other blokes. Still, Everiss thought he had a certain something that made him perfect for the central-casting role of Teenage Hacker. He was articulate, he was funny and easy to talk to, and he was, at least as Everiss remembers it, “far better looking than David and Mark.” Everiss thought he saw similarities to the young John Lennon — the perfect mascot for a Liverpool company trading under the name of Imagine.

As an artificial persona of Everiss’s creation, the Eugene Evans the media came to know was in reality more Monkee than Beatle. Nevertheless, he played his part to perfection. With Everiss’s tireless publicity machine and his own considerable charm behind him, Evans was suddenly everywhere in 1983, a human-interest story everyone scrambled to cover. Everiss coached him carefully to convey the desired message of the working-class Scouser made good. After growing up in a council house, went the narrative, talent and hard work had made him an unexpectedly wealthy and increasingly famous young man, of the sort who gets stopped on the street. “I’ve been recognized from my picture,” he said. “People have said, ‘I saw you in the paper. It’s nice to see someone getting somewhere.’ I started as a tea boy in a computer shop and you can’t start from much lower.” Stories abounded in the press about how, despite his earning thousands of pounds every month, Evans’s bank wouldn’t let him have a credit card or even a proper checking account because of his age. So, said the articles, when he went out to buy hundreds of pounds worth of hi-fi equipment he had to pay for it all in cash — and in £5 notes at that, for reasons that were never clearly explained but somehow served to make the story sound even better.

But the Eugene Evans stories the press loved most all had to do with his car. It seemed that he’d bought himself a brand new Lotus, but, being too young to drive, couldn’t do much with it other than enjoy looking at it in his driveway. Asked years later about the topic, Everiss claimed that the car really did exist — but admitted that it “belonged” to Evans only on lease. This anecdote, as we’ll soon see, would come to serve as a metaphor for much of what went on at Imagine.

For his part, Evans seemed less concerned about the car than he was with being accepted by Imagine’s crew of real hackers. When not out giving interviews, he tried earnestly to live up to his press by writing games. The results ranged, in Everiss’s words, from “tolerable” to “a travesty.” A natural with the media he perhaps was; a natural programmer he most definitely was not.

If Butler and Lawson resented this poseur, they never made it obvious. It did make a certain perverse sense to have Imagine’s coder star be someone who didn’t actually do a lot of coding, thus freeing up the real coders to do what they did best. And besides, Butler, Lawson, and Everiss all had more than enough to keep them entertained as they threw themselves with enthusiasm into a lifestyle of conspicuous consumption. “The money means nothing to me,” Lawson dutifully claimed, as artistic types are expected to do in these situations. “It’s the satisfaction of being the best.” Maybe that was true — but the things he bought with the money, like the £34,000 Ferrari Mondial that he started driving to work, certainly seemed to have their appeal. Butler opted for a BMW 735i and a customized racing motorcyle, while Everiss went with a Ferrari 308 GTS. “We are a dynamic industry,” said the latter, “so we all drive dynamic cars.” Imagine took to handing out new cars as rewards for finishing tricky projects on time, the way other companies might give a gift card for a fancy restaurant. Their parking garage was soon filled with Ferraris, Porsches, and Lotuses, prompting many in Liverpool to joke that Imagine alone had managed to double their town’s population of exotic sports cars in a matter of months. To this day, when people who were around the British games industry back in the day think of Imagine, the cars tend to be the first image that comes to mind.

Yet Imagine’s taste for excess went far beyond the cars they drove. They leased an entire floor of a newly renovated building on Sir Thomas Street, colloquially known around Liverpool as “the Glass Tower,” for what they proudly referred to as their “world headquarters.” Programmers, seeing the tales of Eugene Evans in the tabloid press and even from time to time on the telly, flocked to the place in search of their share of all that filthy lucre. Imagine’s legend was already becoming such that the reality could be disappointing. A typical job seeker was one Chris Butler:

There was a TV Eye program on them where they claimed that Eugene Evans was earning 35 grand a year. And I thought, “Oh, yeah, that’ll suit me,” so I wrote off to them, and they said, “Yeah, yeah.”  So I went up there and said, “What kind of salary are you going to offer me?” And they said, “Five grand.” I could get more by working in a bank in Southend.

Butler didn’t take the job, although he would go on to a career programming games for other companies.

But a lot of programmers did accept jobs, along with a support staff of secretaries, artists, salespeople, and PR reps, ballooning Imagine’s employee roll from two at the beginning of 1983 to more than 100 by the beginning of the following year. Most of the support staff knew nothing about computers or computer games. Indeed, the old dream of using computers to take Scousers off the dole seemed rather in danger of getting drowned under a deluge of degreed professionals. Yet the core trio claimed they had no choice but to start bringing in such folks. They considered themselves to be building a new form of popular media, not a technology company, and thus to need their growing collection of degree-holders in fields as diverse as business management and psychology; the latter group were there to study players in the hope of “producing more playable, more addictive games.” Some of the schemes that were hatched were kind of hilarious. “Imagine was looking at alternative input devices,” Everiss would later claim, “including electrodes to monitor brain waves and thus allow thought control of games.”

Imagine continued constantly to drive home their preferred parallels with the field of pop music during the 1960s, claiming as stridently as ever that they would foster the British Invasion of the 1980s. In a sentence that reads like it was dictated to him by Everiss, a wide-eyed young journalist from the popular Spectrum magazine Crash wrote that “Bruce Everiss and Imagine have created an awareness first in Liverpool and now throughout the world about British games software.” While the part about Liverpool was certainly true enough, that business about “throughout the world” was an eyebrow-raising assertion indeed, given that nothing Imagine made had yet been exported any further than Western Europe. But then, to hear Imagine tell the story Britain alone seemed to have more than potential enough for now. Everiss predicted that a Speccy game — presumably one from Imagine — would sell 1 million copies in Britain alone before the end of 1984, in keeping with an overall market he expected to double in size each year for the foreseeable future. “It’s the new mass market,” he said, summing up in those five words Imagine’s entire business strategy. He believed the most dangerous competition for Imagine would come not in the form of the other existing software publishers but, predictably enough given Imagine’s fixation on the music industry, in that of the record companies who must inevitably decide sooner or later to jump on this new bandwagon. “The record companies are experiencing a big drop in sales because more and more young people are becoming bored with pop and turning to games on home computers,” he said, in a comment which had to strike even the most fervent computer boosters as smacking more than a little of wishful thinking.

And yet, if Imagine was telling the truth about their business perhaps Everiss’s claim wasn’t so outlandish. The numbers that came attached to Imagine’s claims of success were astronomical, dwarfing those of any other British software house. They claimed to have earned £6 million in their first six months. The core trio of Butler, Lawson, and Everiss, said trio themselves claimed, were each worth £10 million by the end of 1983. And many of Imagine’s employees, to hear the same three gentlemen tell the tale, weren’t far behind.

In addition to the inescapable Eugene Evans, a second carefully groomed media favorite was John Gibson. Another working-class bloke made good of the sort Everiss so loved to highlight, Gibson in earlier years had played in a rock band, driven a chemist’s van, worked as a social-security officer, and tried to make a go of it as a self-employed carpenter specializing in suspended ceilings. Mud, the band he had played with back in his school days, had later gone on to release the best-selling British single of 1974 among other hits. He’d been saved from a lifetime of stewing over that missed opportunity when he’d discovered computers, learned to program them, and come to Imagine to make games. Now, he drove to work every day in a Porsche. The press loved one anecdote in particular about Gibson: that he, being the only person at Imagine over thirty years old, was called “Granddad” by all his colleagues. “I can’t believe my luck,” he said, “especially at my age,” evidently feeling every one of his 36 years every time he climbed out of his Porsche in the Imagine parking garage.

Gibson was unquestionably a better coder than Evans — Evans “can play the games I’ve written better than I can,” he once said noncommittally when an unsuspecting journalist served up a chance to compliment the latter’s skills — yet it was hard to fathom how he could be making so very much money from the games he churned out. The harsh fact was that Gibson’s games, as most of the teenage critics who bought them agreed, never really rose above the level of competent. His first, Molar Maul, was more notable for its bizarre theme — it stuck you inside someone’s nasty morning mouth, expecting you to ward off plaque attacks with toothbrush and toothpaste — than for its gameplay. The next, Zzoom, was just another shooter, while the third was the poorly received Stonkers, an attempt at delivering a strategic war game that was virtually unplayable in concept and horrendously buggy in execution, rather leaving one with the impression of a programmer and game designer completely out of his depth.

And as Gibson’s games went, so went those of Imagine as a whole. Butler, Lawson, and Everiss wanted the company to publish two new games every month, and their programmers worked hard to meet this goal. To help them, Lawson put together a state-of-the-art development system, in which programmers could do all of their coding on SAGE IV workstation computers, boasting 1 MB of memory and hard disks, instead of the tiny cassette-based machines the games must eventually run on. But if the workstations helped them to make games faster, they didn’t really seem to help them make games that were better than the competition in terms of anything other than their packaging and advertising. Even Lawson seemed to have grown a bit lazy after Arcadia, preferring to play the gentleman-about-town in his Ferrari and generally enjoy the good life rather than taking the time to make more games of similar quality. One Bruce Everiss quote was perhaps inadvertently telling: “Like pop records and tapes, games must have imaginative and colorful covers to attract sales. Almost as much time is spent designing the covers, packaging, and publicity materials as devising and testing the games themselves.”

In the summer of 1983, a new company with the linguistically tortured name of Ultimate Play the Game — possibly a play on Imagine’s favored advertising tagline, “The Name of the Game” — arrived on the scene with an initial spurt of four very impressive games in two months. These titles, whether taken separately or in unison, gave the lie to any lingering claim by Imagine to be the best maker of Spectrum games, full stop. Ultimate took exactly the opposite tack to that of Imagine in terms of public relations, replacing the latter’s ostentation with reclusiveness, and managing in the process to replace their rival almost overnight as the coolest name in Spectrum gaming. While Imagine continued to make a spectacle of themselves, Ultimate quietly delivered groundbreaking game after groundbreaking game from a secret location with a “Private: Keep Out!” sign posted on the door. Meanwhile Imagine’s games seemed to be getting worse over time rather than better, with embarrassing turkeys like Stonkers becoming more and more common.

One didn’t have to be an expert in financial forensics to sense that the numbers didn’t quite add up for Imagine. Their mediocre games had undoubtedly benefited greatly from the distribution inroads engineered by Everiss, but by late 1983 the competition had already done much to erase that advantage, at least in terms of the domestic British market. How could Imagine’s games possibly be selling in such quantities that they could afford to zip about in Ferraris while everyone else puttered around in Fords? When journalists did question them on specifics, the answers they received were never very satisfying. For instance, after Mark Butler made the incredible claim that 70 percent of all Spectrum owners had purchased a copy of Arcadia, Your Computer magazine asked how it could be that such an unprecedentedly popular game hadn’t been all that high in the industry’s official retail-sales charts for some time. Butler answered that this was because most of Arcadia‘s sales were made via mail order — a claim that stood in stark contradiction to Imagine’s other assertion that their Britain- and Western Europe-spanning retail network was one of the biggest keys to their allegedly ongoing success.

Such questions were getting put to them more and more as Imagine powered into the 1983 Christmas season, still only their first as a publisher to retail. Yet even now the trade press’s skepticism wasn’t too pronounced. These “journalists” were mostly just young men who loved games and the computers that played them; they were far from trained investigative reporters. And there remained the tangible proof of Imagine’s success all around them, in the form of fast cars, faster motorcycles, plush offices, and a bevy of well-coifed secretaries who seemed to have been hired on the basis of looks rather than skills. Something had to be paying for all this ostentation, right? To a large extent, the brash young lads of Imagine were living the dream they all shared. No one really wanted to burst the bubble — even if Ultimate’s actual games were a lot better.

But burst the bubble must. And when it happened, the result would be a spectacular crackup that still remains one of the most storied in the long history of games-industry excess, a veritable blueprint for the similar crackups to come. Enormous though the sums connected with Imagine’s failure seemed at the time, the money involved in those later scandals would of course dwarf that of this one. Still, Imagine’s story would have one delicious aspect even they wouldn’t be able to match: it would be captured on videotape.

(Sources: the book Grand Thieves and Tomb Raiders: How British Videogames Conquered the World by Rebecca Levene and Magnus Anderson; Your Computer of October 1981, August 1982, January 1983, April 1983, and December 1983; Computer and Video Games of December 1981, May 1983, and February 1984, and the 1984 Yearbook; The Games Machine of August 1990; ZX Computing of April/May 1983; Popular Computing Weekly of January 6 1983, March 3 1983, and April 7 1983; Home Computing Weekly of April 12 1983, May 17 1983, July 12 1983, and December 20 1983; CU Amiga of August 1992; Sinclair User of March 1984 and May 1984; ZZap! of September 1986; Your Computer of April 1983 and November 1984; Crash of March 1984; Times of London of August 16 1983. See also Bruce Everiss’s “A History of the UK Video Game Industry Through My Eyes,” parts 1 and 2. The Commercial Breaks episode on Ocean and Imagine is available on YouTube.)