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 salesRSI 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 loanOn 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 fallingDuring 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 failedDuring 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=1450P.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.
Comments
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.
― Terry Pratchett, Making Money
― Terry Pratchett, Making Money
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
Viking
to be clear I am no fan of SC and I think they are horrible at project managment but really? 'evidence'?
Please do not respond to me, even if I ask you a question, its rhetorical.
Please do not respond to me
"Cherish the quiet...before my STORM!"
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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.
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