By 1988, rumors spread of disputes between Activision and Infocom. Infocom employees reportedly believed that Activision gave poorer-quality games to Infocom, such as Tom Snyder Productions' unsuccessful "Infocomics". Activision moved Infocom development to California in 1989, and the company was now just a publishing label. Rising costs and falling profits, exacerbated by the lack of new products in 1988 and technical issues with its DOS products, caused Activision to close Infocom in 1989, after which some of the remaining Infocom designers such as Steve Meretzky moved to the company Legend Entertainment, founded by Bob Bates and Mike Verdu, to continue creating games in the Infocom tradition.