It has been no secret that for the last five months Mattel Interactive has been in considerable financial trouble, as reports have confirmed that the company is rapidly losing value. At the same time, its parent company, toy manufacturer Mattel, has officially stated that it is evaluating a possible sale of Mattel Interactive. Since then, many companies have been rumored to be potential buyers, including Electronic Arts, Havas Interactive, Infogrames, and Ubi Soft. However, the company has found it difficult to find a buyer, and there have been more than a few roadblocks to the sale.

　　GameSpot has learned that Mattel Interactive may be forced to sell its divisions separately. UK trade paper MCV reports further that New Dimensions is thought to be the front-runner for the educational and preschool products, while Havas Interactive is said to be very interested in the SSI brand and the Myst series, which has gone into the third installment under Mattel Interactive. Even after the sale, however, it is unlikely that Mattel will recuperate the US$3.5 billion it originally paid to acquire the Interactive division.

　　With the potential sale becoming more imminent, there are still several questions that remain. For example, some developers have told GameSpot that they have been left high and dry because of the abrupt project cancellations. GameSpot has been in touch with Mattel, and we have discovered that several projects are indeed faced with cancellations. One of the cancelled projects is the boat racing game Hydro Sports Racing for the Sony PlayStation, which was prominently shown at the last E3 show and has been receiving positive comments from the worldwide press. Though it could not be confirmed at press time, it is very likely that other Mattel projects will share the same fate.

　　However, several PC projects are still in development, such as Myst 3 from Presto Studios and Pool of Radiance from SSI. Spokespersons at Mattel Interactive could not be reached for comment, but GameSpot News will continue follow this story and will bring you further details as it develops.