I think that's a little short sighted. Any bank in the world would be falling over themselves to provide a loan to a 4 year old start up company with 133 million dollars in pre sales, should it be needed. There are plenty of people playing the alpha whenever I log on and there is still plenty of people wanting to play. Only time will tell of course, but your certainty is misplaced. Nobody knows what the future will bring.
Squadron 42 will bring in some money. No doubts. How much is anyone's guess. Could be a million. Could be 100 million. We don't know. None of us do.
Let's assume that Tony Z used to be a hedge fund manager and has a clue how to invest copious amounts of cash reasonably efficiently. Now let's assume overheads in years one and two were significantly less than today. Now let's assume they've taken around 30 million a year for 4 years running. Is money running out? I highly doubt it. Derek says it is but is yet to provide any proof whatsoever. He's guessed at 90 days tops well over a year ago and would be amazed if they saw out 2016. Here we are.
It's going to be fun watching what happens whatever side of the fence you're sitting on. Can't wait.
Are CIG running out of money?
Always an interesting question.
Currently they have about 400 developers and programmers. At an average wage of $40k a year, that's $16 million right there. Add in a ballpark 25% just to allow them to work - running costs, support staff, etc - and you are looking at a rough estimate of $20 million a year.
Those figure are also likely conservative and on the low side. Devs likely get more than $40K a year. It wouldn't be surprising to learn that CIG are burning $25-$35 million a year. Paid the reported US average you'd be looking at yearly costs of $36 million...but it is difficult because it has teams in the UK and Germany and Austin and so on.
And so far, it is earning an average of £33 million a year from sales and crowdfunding. And costs in the beginning were lower as well...there were fewer developers. So even if CIG were losing money, they would still have a healthy buffer.
But there have been other costs. Linguists. Movie stars. Scriptwriters. Motion Capture. Third party deals that have had to be scrapped. Legal fees.
And in the future? There is marketing. CIG will need to spend huge amounts of money to effectively market the game. Trouble is - a lot of players have already "bought" it. But without new players, there is a potential revenue problem. They say they won't sell ships, and servers and development will cost money. But maybe CIG will be happy with the existing base.
However...as things are, it is not unreasonable to suppose the CIG might indeed be running out of money, especially with the latest letter from
Roberts. It's a nice begging letter...but still a begging letter.
Overall? CIG probably has enough money on hand to finish the game. They are probably going to bring in enough from ship sales for a while to slow down any leaks but there is a fair possibility that they are spending money as fast as they can make it.
However, without more data, we can't know for sure.