Ms. Pac Man has an interesting history.
Pac-Man, the original game, was developed by Namco in Japan, and distributed by Midway in the United States, and was a massive, massive hit — the most popular arcade game of its day, and still one of the most popular arcade games of all time.
The videogame industry was different 40 years ago than it is today, and video games were still new enough that a lot of the intellectual property rights weren’t yet established in law, leading to unsettled (and often unasked) questions.
As a result, there was a sub-industry of third-party mod kits for arcade games, which gave arcade proprietors a way to renew interest in older games that had waned in popularity. It wasn’t illegal to modify an arcade cabinet that you owned, and so over time kits were developed by third parties to do just that.
One of the companies producing these hardware mod kits, named GCC, hacked Pac Man to create an unofficial “sequel”. To avoid trademark infringement, they named it “Crazy Otto” at first, but that wasn’t enough to avoid a lawsuit. In the end, a settlement between GCC and Namco turned Crazy Otto into an official sequel which became Ms. Pac Man.
GCC’s contract entitled them to royalties on each Ms. Pac Man cabinet manufactured or sold by Midway-Namco. Ms. Pac Man was a smash hit, just as popular as the original Pac Man. Everyone got rich and everyone way happy.
Ms. Pac Man went on to have a long life, and has been ported, re-packaged, and re-released on many platforms over the years, but GCC’s contract entitled them to royalties only from “coin-op cabinets”. Twenty-five years later, new cabinets were produced for the anniversary, and hybrid Galaga/Ms. Pac Man cabinets were a popular sight in bars in the mid-2000s.
By this time, the executives now running Namco had forgotten about the contract with GCC, who reminded them of it by suing for their royalties. Namco paid what they owed, and weaseled out of paying on arcade cabinets made for home use, which didn’t have coin slots, since the contract wording specified “coin-op cabinets” (which was simply what arcade machines were called at the time the contract was signed). And then, to avoid ever having to pay another royalty to GCC again, Namco wrote the Ms. Pac-Man character out of the picture, replacing her with other female pac-man characters such as “Pac-Girl” and “Pac-Marie”. Thereafter, future Ms. Pac-Man re-releases only came out on platforms not covered by the GCC contract, so Namco wouldn’t have to pay the royalties.
It just goes to show the level of sheer greed that companies have when it comes to paying creators and ownership of intellectual property. If the company can make money without having to pay the creators, they will do that. Granted, GCC wasn’t producing an authorized work, and this could have colored the relationship. But considering how much money Ms. Pac Man earned for everyone over the years, you’d think that those profits could go a long way toward smoothing over any rough spots in the relationship. Apparently not.
GCC later sold their ownership rights to Ms. Pac-Man to AtGames. If they had instead sold to Midway-Namco, this might never have been an issue. But because of how things worked out, one of the most iconic videogame characters of the 80s golden age of the arcade is basically sidelined indefinitely. Because contested or jointly owned intellectual property rights are that much of a legal pain to negotiate around that it’s better to just kill the property and make no money from it at all than to try to work out agreements for sharing revenues. How sad.