After 35 years of providing products to the coin-op industry, Megatouch LLC is ceasing all development and production of touchscreen terminals and associated software, the company announced today. 

Specifically, Megatouch Live, the ML-1 terminal, and ION software updates are all being discontinued. Existing quantities of hardware and software will be sold until inventories are depleted.

"For some amount of time, there has been waning marketing demand for Megatouch hardware and software," CEO Mike Maas told RePlay, noting that revenues had fallen "well below what it costs to develop, maintain and support the products. We've been dreading this day, but this is the end of Megatouch as we know it."

The announcement does not affect AMI Entertainment, the company that produces broadband jukeboxes, along with music and the TAP TV trivia game system. The Rowe changer business, which had been under the Megatouch umbrella, will also continue, likely as a stand-alone entity. AMI and Megatouch were subdivided into two separate entities two years ago.

Megatouch will retain the capability to provide limited technical support, primarily to honor the warranty period, up to three years on some products. Parts will continue to be available, from distributors and Megatouch, to support warranty work, as well as non-warranty to the extent possible, reports the company.  

Tournamaxx will continue in its current form at least through 2014, for both operator-run and Megatouch-sponsored tournaments. Other services, such as Prize Farm and AMI Access, will also continue to be supported through 2014. However, no new updates will be provided.

Megatouch says ML-1 operators will receive a free Forever Kit for each ML-1, which will convert the system to a stand-alone terminal no longer requiring server connectivity. The kits will be delivered in February in preparation for online features of the Megatouch Live system, along with credit card support, to shut down in mid-March of 2014. At that time, operators will no longer be responsible for revenue share fees.

Operators should contact their distributor immediately if they have interest in purchasing remaining inventory, which is very limited.

"We've had a great run with Megatouch over three and a half decades," concluded Maas.  "The most important message is that we really value our operators and we've tried to engineer this process in a way that treats our operators well in the transition period. We think we have done a Yeoman's job at mitigating any downside to the marketplace."

According to Maas, a number of staffers have already departed the company. Some will remain during the coming year as the Megatouch business winds up. A small group of developers will also remain as part of an effort to repurpose Megatouch's intellectual property assets for alternative uses not related to the amusement game industry.

A bill has been introduced to the California Assembly by Bakersfield lawmaker Rudy Salas that would prohibit a sweepstakes game that uses "any method intended to be used by a person interacting with a gambling-themed or simulated gambling electronic video monitor." The bill, AB 1439, would apply to a "business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value, or otherwise connects a sweepstakes player or participant with sweepstakes cash, cash-equivalent prizes, or other prizes of value." The measure was introduced yesterday, Jan. 6.