<ARTICLE>                     5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated Balance Sheet of Interactive Magic, Inc. as of March 31, 1999 and
the related Statements of Operations for the three month period ended March 31,
1999 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                                                
<PERIOD-TYPE>                                      3-MOS
<FISCAL-YEAR-END>                            DEC-31-1999
<PERIOD-END>                                 MAR-31-1999
<CASH>                                             3,255
<SECURITIES>                                           0
<RECEIVABLES>                                      2,925
<ALLOWANCES>                                       1,521
<INVENTORY>                                          834
<CURRENT-ASSETS>                                   7,772
<PP&E>                                             3,438
<DEPRECIATION>                                     2,265
<TOTAL-ASSETS>                                     9,717
<CURRENT-LIABILITIES>                              3,243
<BONDS>                                            3,304
<PREFERRED-MANDATORY>                                  0
<PREFERRED>                                            0
<COMMON>                                           1,068
<OTHER-SE>                                         1,922
<TOTAL-LIABILITY-AND-EQUITY>                       9,717
<SALES>                                              561
<TOTAL-REVENUES>                                   1,164
<CGS>                                                520
<TOTAL-COSTS>                                      5,259
<OTHER-EXPENSES>                                      38
<LOSS-PROVISION>                                       0
<INTEREST-EXPENSE>                                   887
<INCOME-PRETAX>                                    4,944
<INCOME-TAX>                                          35
<INCOME-CONTINUING>                               (4,979)
<DISCONTINUED>                                         0
<EXTRAORDINARY>                                      493
<CHANGES>                                              0
<NET-INCOME>                                      (4,486)
<EPS-PRIMARY>                                      (0.42)
<EPS-DILUTED>                                      (0.42)