8-K

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 8-K



                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



         Date of Report (Date of earliest event reported): July 30, 2001


                           ACCLAIM ENTERTAINMENT, INC.
                           ---------------------------
             (Exact name of registrant as specified in its charter)


          Delaware                      0-16986                 38-2698904
          --------                      -------                 ----------
(State or other jurisdiction       (Commission File No.)       (IRS Employer
     of incorporation)                                      Identification No.)


          One Acclaim Plaza
         Glen Cove, New York                                    11542-2709
         -------------------                                    ----------
(Address of Principal Executive Offices)                        (Zip Code)


       Registrant's telephone number, including area code: (516) 656-5000
                                                           --------------

                                Page 1 of 3 pages




ITEM 5.  OTHER EVENTS

On July 30, 2001, Acclaim Entertainment, Inc. (the "Company") issued a total of
9,335,334 shares (the "Shares") of its common stock, par value $0.02 per share
(the "Common Stock") in a private placement to certain qualified institutional
buyers and accredited investors at a price of $3.60 per share, for aggregate
gross proceeds of $33,607,201. The per share price represents an approximate 10
percent discount to the recent public trading price of the common stock. The
proceeds of the private placement are intended to be used for ongoing product
development for the next generation video game platforms, strategic acquisitions
of additional properties, holiday season marketing and advertising campaigns,
and the reduction of outstanding liabilities.

The private placement was effected under the exemption from registration
provided under section 4(2) of the Securities Act of 1933. The Company has
agreed to use its best efforts to register with the SEC all the common stock
sold in the offering within 60 days following the closing. If such registration
is not effective within 60 days following the closing, the Company must pay a
penalty to each investor equal to one percent of the purchase price paid for the
stock purchased by that investor.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

Exhibits: 99.1 Acclaim Entertainment, Inc. Press Release, dated July 31, 2001.




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                                   SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        ACCLAIM ENTERTAINMENT, INC.

                                        By: /s/ Gerard F. Agoglia
                                            -----------------------------------
                                        Name:  Gerard F. Agoglia
                                        Title: Executive Vice President
                                               and Chief Financial Officer



Date: August 1, 2001









                                Page 3 of 3 pages

EX-99.1

GERARD F. AGOGLIA                                    ALAN B. LEWIS
Acclaim Entertainment                                Acclaim Entertainment
(516) 656-5000                                       (516) 656-2263
gagoglia@acclaim.com                                 alewis@acclaim.com
- --------------------                                 ------------------



FOR IMMEDIATE RELEASE
- ---------------------

                           ACCLAIM ENTERTAINMENT, INC.
                 COMPLETES PRIVATE PLACEMENT OF COMMON STOCK FOR
                         GROSS PROCEEDS OF $33.6 MILLION

GLEN COVE, NY, July 31, 2001 - Acclaim Entertainment, Inc. (NASDAQ.SC: AKLM), a
leading global video entertainment software developer and publisher, today
announced the completion of a private placement of common stock for gross
proceeds of $33.6 million. In connection with the offering, the Company issued
9,333,333 shares of its common stock to a small group of private institutional
investors. The per share price reflects an approximate 10 percent discount to
the recent public trading price of the common stock. UBS Warburg LLC acted as
exclusive placement agent for the transaction.

"We are pleased to announce this financing, which will be utilized for ongoing
product development for the next generation video game platforms; strategic
acquisitions of additional properties; integrated marketing and advertising
campaigns throughout this holiday season; and the continued reduction of our
outstanding liabilities," said Gregory Fischbach, Chief Executive Officer of
Acclaim. "As we quickly approach one of the most exciting periods in the history
of the interactive entertainment industry, Acclaim Entertainment is well
positioned to take advantage of the advent of the next generation technology and
deliver a broad spectrum of titles for the systems."

The common stock has not been registered under the Securities Act of 1933, as
amended, or state securities laws, and may not be offered or sold in the United
States absent registration with the Securities and Exchange Commission (SEC)
under the Securities Act of 1933, or an applicable exception therefrom. The
Company has agreed to use best efforts to register with the SEC all of the
common stock sold in the offering within 60 days following the closing.



                                     -more-



ACCLAIM/2

SAFE HARBOR STATEMENT
- ----------------------

This press release contains forward-looking statements. The forward-looking
statements included here are based on current expectations that involve a number
of risks and uncertainties, as well as on certain assumptions. The Company's
auditors have provided a qualified opinion on the financial statements for the
fiscal year ended August 31, 2000 as to the Company's ability to continue as a
going concern. Such statements regarding future events and/or the future
financial performance of the Company are subject to certain risks and
uncertainties, such as the timing of console transitions, delays in the
completion or release of products, the support of the Company's lead lender, the
achievement of sales assumptions as projected, the continuation of savings from
expense reductions, the possible lack of consumer appeal and acceptance of
products released by the Company, fluctuations in demand, that competitive
conditions within the Company's markets will not change materially or adversely,
that the Company's forecasts will accurately anticipate market demand and the
related impact upon liquidity and its ability to service its debt obligations
should any of these risks occur. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions, and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the control of the
Company. Although the Company believes that the assumptions underlying the
forward-looking statements are reasonable, the business and operations of the
Company are subject to substantial risks and uncertainties that increase the
uncertainty inherent in the forward-looking statements. These and other risks
and uncertainties are detailed from time to time in Acclaim's reports filed with
the Securities and Exchange Commission and should be referred to.

ABOUT ACCLAIM ENTERTAINMENT

Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a leading worldwide
developer, publisher and mass marketer of software for use with interactive
entertainment game consoles including those manufactured by Nintendo, Sony
Computer Entertainment, Sega and Microsoft Corporation as well as personal
computer hardware systems. Acclaim owns and operates four studios located in the
United States and the United Kingdom, and publishes and distributes its software
directly in North America, the United Kingdom, Germany, France, Spain, Australia
and the Pacific Rim. Acclaim also distributes entertainment software for other
publishers worldwide, publishes software gaming strategy guides and issues
"special edition" comic magazines from time to time to support its time valued
brands, Turok and Shadow Man. Acclaim's corporate headquarters are in Glen Cove,
New York and Acclaim's common stock is publicly traded on NASDAQ.SC under the
symbol AKLM. For more information please visit our website at www.acclaim.com.