NEW YORK — Acclaim Entertainment Inc. stock fell Wednesday on rumors that WMS Industries Inc., creator of the hit videogame, Mortal Kombat, will not renew a contract that allows Acclaim to re-package its games for home use.
Acclaim stock closed down $ 2.125 at $ 23 in heavy trading.
Acclaim has a license to sell WMS video arcade games such as Mortal Kombat in formats that can be played at home on Sega Genesis and Nintendo systems. Acclaim has a right of first refusal to WMS games under a contract that expires in 1995.
The stock fell after Robertson Stephen analyst Keith Benjamin claimed WMS has said it will not renew its pact with Acclaim, traders said.
“WMS has indicated that it wants to get into the videogame market on its own, ” said Michael Wallace, an analyst at UBS Securities. He said he assumed WMS would not renew the pact.
“These rumors are unsubstantiated,” said a spokeswoman for Acclaim, based in Oyster Bay, N.Y. “We are still in negotiations with Williams Electronics.”
She also said the company plans to release Mortal Kombat II in the fall as scheduled. Acclaim has also licensed Terminator 2 and NBA Jam from WMS.
Williams Electronics is a subsidiary of Williams Bally/Midway, which makes pinball machines and arcade games.
A spokesman for Chicago-based WMS could not be reached.