RSI in financial trouble?

Vrika

Star Citizen has now raised more than $154 million in crowdfunding [1], congratulations to RSI for that achievement. But they have close to 400+ employees, all of whom need their salaries and associated costs paid, office space, computers, licenses for programs, etc. Is $154 million enough?


Evidence of financial trouble #1: Concept sales

RSI has very large control over their own income through their concept sales; When they need more money, they can release a new concept sale and it'll give them about a million dollars more crowdfunding. Lately they've been using this a lot

22nd April: Banu Defender concept sale [2]
19th May: Aegis Eclipse concept sale [3]
23rd June: Aopoa Nox concept sale [4]
22 July: Cyclone presale [5]


Evidence of financial trouble #2: RSI taking out loan

On 13th of June 2017, RSI's largest studio Founry 42 Ltd. and its assets were uses as a collateral to secure a loan [6]

RSI later downplayed this as getting advance against UK tax rebate,"which will allow [RSI] to avoid converting unnecessarily other currencies into GBP" [7] 

RSI's explanation that they're getting tax rebate advance is likely true, UK has a video game tax relief that's perfect for collateral, but their explanation on avoiding converting other currencies into GBP is suspicious at best: They've got more than 200 employees in UK and they will never get enough income in GBP to avoid converting USD and EUR into GBP to finance their UK operations. Taking out loans in GBP will only delay the moment they need to use other currencies to pay for their UK operations.


Evidence of financial trouble #3: New registrations falling

During first half of 2017 RSI got 129 000 new registrations on their website. While this number is impressive, it's 51% down from their 264 000 new registrations gained if first half of 2016. [8]


Evidence of financial trouble #4: Schedule for next patch completely failed

During Gamescom 2016 Star Citizen's patch 3.0.0 was presented as their "big end of the year release" [9]. Now we're more than halfway through 2017, and the big increase in media attention, new registrations, and hopefully new sales they were planning to get with 3.0.0 release still hasn't happened.

Missing out on this much planned income for more than half a year is liable to also cause trouble with whatever financial plans CIG had a year ago.


Conclusions:

I think it looks like that CIG has failed to release like they planned, failed to get as much income as they planned, and they're financially in a difficult situation where they have to do steps like making extra concept sales and taking out a loan or they'd run out of cash.

Does this mean Star Citizen will fail? No. They'll manage to stretch their money until 3.0.0 is released, and if they get good enough sales increase the're fine. But it looks like they're in a very precarious situation where the pace that has so far netted them $154 million isn't enough and they need 3.0.0 to successfully bring them even larger sales.


Sources:
[1]: https://robertsspaceindustries.com/funding-goals
[2]: https://robertsspaceindustries.com/comm-link/transmission/15862-Banu-Defender
[3]: https://robertsspaceindustries.com/comm-link/transmission/15907-Aegis-Eclipse-Stealth-In-The-Shadows
[4]: https://robertsspaceindustries.com/comm-link/transmission/15982-Terminal-Velocity
[5]: https://robertsspaceindustries.com/comm-link/transmission/16014-Behold-The-Cyclone
[6]: https://beta.companieshouse.gov.uk/company/08703814/filing-history
[7]: https://robertsspaceindustries.com/spectrum/community/SC/forum/1/thread/re-uk-tax-rebate-advance-for-foundry-42
[8]: https://docs.google.com/spreadsheets/d/1tMAP0fg-AKScI3S3VjrDW3OaLO4zgBA1RSYoQOQoNSI
[9]: https://youtu.be/Z-3YBuFI3iI?t=1450


P.S. RSI could at any time release a financial statement to prove that my speculations are wrong and my concerns are unfounded. Companies in stock exchange release those 4 times a year. If CIG doesn't release us their financial statements and tell us their true financial numbers, it's not because they can't tell us those numbers, it's because they choose to not tell us.

Kefo

They have been getting less and less year over year in crowdfunding as well compared to the same timeframe. I haven't done it in about a month and a half but when I did it was something like an increase of a percent compared to 2016

VorpalChicken28

Why any company would choose to release sensitive company info to the general public, especially when they are a private company, is for me abit of a no brainer, you don't do it.

If you've pledged/bought/donated/given cash to them, and hold a share in the company then by all means go the companies AGM and ask to see the financials.

If your just another random troll01 looking to bait people, well congrats you found the right forum, I'm sure others will oblige you.

For me personally your 'evidence' is a load of crap, and just amounts to hearsay,implied wrongdoing and the fact that CR couldn't manage his way out of a paper bag.

If, like me, your a Star Citizen sceptic then get, not necessarily in this order, a life, a refund and a new hobby. I have done all 3 and am a fairly happy chappy again.  

Renoaku

Perhaps I lost my faith in the game already will wait and see.

Kefo

vorpal28 said:

Why any company would choose to release sensitive company info to the general public, especially when they are a private company, is for me abit of a no brainer, you don't do it.

If you've pledged/bought/donated/given cash to them, and hold a share in the company then by all means go the companies AGM and ask to see the financials.

If your just another random troll01 looking to bait people, well congrats you found the right forum, I'm sure others will oblige you.

For me personally your 'evidence' is a load of crap, and just amounts to hearsay,implied wrongdoing and the fact that CR couldn't manage his way out of a paper bag.

If, like me, your a Star Citizen sceptic then get, not necessarily in this order, a life, a refund and a new hobby. I have done all 3 and am a fairly happy chappy again.  

To be fair they didn't have a choice in the matter since they have to release financials in the UK. Why they let people find out this info on their own and start coming to horrible conclusions instead of lettin backers know is beyond me.

VorpalChicken28

the Companies House financials are only a small part of the bigger picture, remember the main company is based in the US

Erillion

Evidence #1 to #4 .... horses beaten to death AGAIN AND AGAIN in excruciating detail in MANY previous threads here on this forum.

You heard all the counterarguments. You still repost the old arguments. Nothing new.

** shrugs and walks off to enjoy playing Star Citizen and looking forward to Alpha 3.0 **


Have fun

hfztt

They seem to have a steady income, so unless they are overspending they are fine for now. Be worried when the White Knight brigade stops throwing stupid amounts of cash at them each month, but not before to be honest.

Vikingir

As usual in these cases, wishful thinking influence logic and smoke is seen where there's no fire.

SEANMCAD

Vrika said:

Evidence 

thats about as much 'evidence' as my ballz is

to be clear I am no fan of SC and I think they are horrible at project managment but really? 'evidence'?

rojoArcueid

Did C. Roberts go to Trump University? Their monetary schemes look suspiciously familiar. Squeeze them sheeps dry of money, and when they cry, squeeze some more.

rpmcmurphy

They really need to get Sq42 out the door, that would ease things up tremendously. My suspicions is that CR's 'all hands on deck' throws people completely out of their groove. It probably means the addition (or removal) of stuff that was going to be used in Sq42 which means the team having to go back and redo a bunch of stuff etc.

Odeezee

so much conjecture and misinformation. the sheer amount of slander going on in this thread from people who think like and support the OP is staggering. you literally have no concrete PROOF to base your speculation on but speak with such conviction about your ignorance. /sigh

Kefo

Odeezee said:

so much conjecture and misinformation. the sheer amount of slander going on in this thread from people who think like and support the OP is staggering. you literally have no concrete PROOF to base your speculation on but speak with such conviction about your ignorance. /sigh

Libel. If you're going to insult people and say they are ignorant at least get your legal terms correct.

DeathmachinePT

Vrika said:

Evidence of financial trouble #1: Concept sales

RSI has very large control over their own income through their concept sales; When they need more money, they can release a new concept sale and it'll give them about a million dollars more crowdfunding. Lately they've been using this a lot

22nd April: Banu Defender concept sale [2]
19th May: Aegis Eclipse concept sale [3]
23rd June: Aopoa Nox concept sale [4]
22 July: Cyclone presale [5]

Adding more to this they are really pushing subscribers, think 2 months ago they were advertising across multiple platforms to become a subscriber and win that food dispenser.

I kinda took notice because how they underline and mention multiple times in multiple segments it made me feel like they were starting to see their bank account going down quite fast.

Also Chris Smith was working on the revamp hornet but I don't think he finished instead he was pulled to worked on the nox might be another red flag that they were in need of new cash and had to make a concept sale.

Erillion

I think it is more likely that they have finished various art assets that are used in SQ42. And after they are finished they offer them as concept sales for the Persistent Universe (which are miraculously finished quite fast ;-) after the announcement).


Have fun