That's a nice compliment when you get down to it.
However, OSC's cautions about 'it's not a scam... yet' are warranted. Hence my #5 conclusion (project collapses but no legal action sticks).
Yeah, he is sticking to the legal definition and ramifications of whether or not it is a scam. I see what he means though. e.g. you could say that your bank is scamming you by opening accounts in your name without approval. Wells Fargo did that for years without being caught. Then they got caught. Same thing with credit reporting bureaus which have an incentive to keep incorrect and/or false info in your credit profile because then their subscribers (banks, investment companies, utility companies etc) then can charge your higher fees. Until they kept getting caught. And just a few days ago on July 1st, after a bunch of them got caught doing scammy shit, the govt again changed the FCRA, fined them, and new rules (liens and similar no longer in credit profiles without certain info) went into place. Same thing with AT&T, and other companies charging hidden fees which are completely unrelated to your account. All of those things are "scams", but until there is legal action, they can get away with it.
So I think that's what he is saying in the case of Star Citizen. That we can all continue to call it scam as much as we want, but it won't be true unless and until there is legal action that says and proves it to be a scam. He also made a
follow-up post where he was explaining under what circumstances it would all come to a head.
I really wonder what happens after the end, though. CIG pretty much has to draw a straight flush to win this, and I don't see it happening. It should be a salutary lesson about the dangers of hype, and promising the moon but failing to deliver. Even if CIG and CR avoid legal action, why would any sane person give them money ever again if the game tanks?
They won't avoid legal action. It's already clear that they can't build the game promised. What's going to happen is that investors and banks will lose their money. The backers who stay in, will probably make some noise, and a few of those who can afford it, will probably get attorneys and go for a class action suit. Even if none of that happens, I have every reason to believe that the State and/or Fed authorities will get involved at some point when (not if) the project comes to an end.
At the end of the day, those higher ups involved in the game, will be finished in the industry. But of course they could always place the blame on Chris behind the scenes.
Either way, I see Chris, Sandi, and Ortwin all getting sued here in the US. I don't know what will happen in the UK, but for an international company, if the Feds do get involved, it could spread over there. It's not like they didn't also have issues with the
FCA in the past over the Gizmondo issue.
