Resurrecting The Arcanum IP

tim-cain arcanum ip-rights game-business microsoft tax-write-offs

Abstract

Problem: Fans constantly ask Tim Cain about making more Arcanum — a remake, remaster, or the designed sequel "Journey to the Center of Arcanum." What would it actually take to bring this IP back?

Approach: Tim breaks the question into three parts: who owns the IP, what state it's in, and what resurrection would require.

Findings: The IP is owned by Microsoft (through a chain of acquisitions), is likely a tiny asset in their massive portfolio, and may have been used as a tax write-off — which would create serious legal and financial complications for anyone trying to license or purchase it. Resurrecting it would require a corporate champion, legal untangling, and a convincing financial argument that the IP adds more value than it costs.

Key insight: The biggest hidden obstacle isn't cost or interest — it's the possibility that Arcanum was claimed as a tax write-off at some point in its ownership chain, which would make reviving it a legal and accounting nightmare.

Source: https://www.youtube.com/watch?v=GGIHmX4uDfE

Ownership Chain

When Troika Games made Arcanum for Sierra Entertainment (developed 1998–2001), the deal split ownership: Troika kept the code, Sierra owned the art and intellectual property. From there, the IP passed through a chain of acquisitions:

  • Sierra Entertainment (original IP owner)
  • Vivendi (acquired Sierra)
  • Activision (Vivendi rolled into Activision)
  • Activision Blizzard (combined entity)
  • Microsoft (purchased Activision Blizzard)

So Microsoft owns the Arcanum IP today.

Why Nothing Is Being Done With It

It's a Tiny IP

In the context of Microsoft's massive portfolio of intellectual properties, Arcanum has a very small audience. Tim acknowledges the passionate fans but is blunt: there are likely dozens if not hundreds of IPs in Microsoft's stable that would make more business sense to resurrect first.

Competing Alternatives Exist

Similar magic-meets-technology settings already exist with bigger built-in audiences — Shadowrun, Torg (tabletop RPG), and others. A studio could also just make an original steampunk-magic crossover game without needing any existing IP, or create a spiritual successor (Tim hints at examples past and upcoming without naming them directly).

The Tax Write-Off Problem

This is the part most fans don't know about, and Tim considers it the most important complication. Intellectual property is a financial asset. If any company in the ownership chain — Sierra, Vivendi, Activision, Blizzard, or Microsoft — ever claimed Arcanum as a tax write-off (declaring it a loss), then reviving the IP creates a serious problem:

  • Using a written-off IP means it has value, which invalidates the original write-off claim
  • The company would potentially have to go back, undo that year's taxes, and pay interest penalties
  • Tim believes there may be no statute of limitations with the IRS on this
  • Companies routinely write off small, seemingly worthless IPs — it's standard practice

This is why companies sit on dormant IPs and do nothing with them. It's not indifference; it's accounting.

What Resurrection Would Require

Tim outlines four requirements for bringing Arcanum back:

An Internal Champion

Someone at Microsoft (or whoever owns it) would need to genuinely want this to happen and be willing to push it through the corporate machinery, despite all the complications.

The tax and legal situation would need to be fully explored. If a write-off was claimed, all the implications of reversing it would need to be calculated and explained to any potential buyer — and those costs would likely be passed on.

A Financial Argument

Whether it's a remake, remaster, sequel, or attaching the IP to an existing project, someone needs to demonstrate that the Arcanum name adds more value than the cost of acquiring it. Tim emphasizes this applies whether you're pitching to investors or spending your own money.

Realistic Cost Expectations

Tim warns against thinking you can "throw 10 grand at it" and walk away with the IP. The cost of untangling write-offs alone could exceed the nominal purchase price, and those costs get passed to the buyer.

Tim's Perspective

Tim is clearly sympathetic to the fan desire — he's previously made videos about remaking, remastering, and even the designed sequel "Journey to the Center of Arcanum" (with an unapologetic Jules Verne reference, noting it's now public domain). But he made this video specifically so he can link to it whenever the question comes up, because the answer is genuinely complicated and fans tend to want a simple response to what is inherently a complex business and legal question.

References