The 3DO Company , also known as 3DO , was a video game company. It was founded in 1991 under the name SMSG, Inc. by Electronic Arts founder Trip Hawkins in a partnership with seven other companies, including LG, Matsushita , AT&T, MCA, Time Warner, and Electronic Arts. After the 3DO Company's flagship video game console, the 3DO Interactive Multiplayer failed in the marketplace, the company exited the hardware business and became a third-party video game developer. When the company was first founded, its original objective was to create a next-generation, CD-based video game system which... would be manufactured by various partners and licensees; 3DO would collect a royalty on each console sold and on each game manufactured. To game publishers, the low $3 royalty rate per game was a better deal than the higher royalties paid to Nintendo and Sega when making games for their consoles.
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