SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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): March 10, 1999



                                  EGAMES, INC.
             (Exact name of registrant as specified in its charter)


       Pennsylvania                      0-27102                  23-2694937
(State or other jurisdiction     (Commission File Number)       (IRS Employer
     of incorporation)                                       Identification No.)



2000 Cabot Blvd. West, Suite 110, Langhorne, PA                       19047-1833
(Address of principal executive offices)                              (Zip Code)


       Registrant's telephone number, including area code: (215) 750-6606


          -------------------------------------------------------------
          (Former name or former address, if changed since last report)





Item 5.   Other Events.

     On March 10, 1999,  eGames,  Inc. (the "Company") entered into a $1 million
revolving  credit  facility  with  Sovereign  Bank,  as  described  in the press
release,  Line of Credit  Note and Line of Credit Loan and  Security  Agreement,
attached  hereto as Exhibits  99.1,  99.2 and 99.3, and  incorporated  herein by
reference.

Item 7.   Financial Statements, Pro Forma Financial Information and Exhibits.

          a.   None.

          b.   None.

          c.   Exhibits.

               99.1 Press Release dated March 18, 1999.

               99.2 Line of Credit Note.

               99.3 Line of Credit Loan and Security Agreement.

                                   SIGNATURES

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

                                                  EGAMES, INC.


                                                  By: /s/ Gerald W. Klein  
                                                     ---------------------------
                                                     Gerald W. Klein, President,
                                                     Chief Executive Officer and
                                                     Chief Financial Officer

Dated: March 22, 1999