Re:Star Citizen is likely in financial trouble
by umdobchob on Sunday June 25, 2017 @11:13AM
(#14630347)
It's not nearly as bad as they make it seem. Loans/debt are a completely healthy source of financing.
[ Parent
| on HN ]
Re:Star Citizen is likely in financial trouble
by Tepix on Sunday June 25, 2017 @11:47AM
(#14630548)
I agree. Let's see what their statement is.
They are however quite late with the 3.0 upgrade that was first expected at the end of 2016 (as was the release of Squadron 42, the single player campaign).
We're still waiting for both of them.
Re:Star Citizen is likely in financial trouble
by brador on Sunday June 25, 2017 @12:24PM
(#14630762)
Significant tax advantages too. Loans can also be a sign of a healthy growing company with big plans and confidence in their execution.
This is nothing more than a Redditor losing control and spreading a false rumor that has been fanned by news sites.
Also dangerously close to Libel.
Re:Star Citizen is likely in financial trouble
by norswap on Sunday June 25, 2017 @11:23AM
(#14630400)
Excepted it wasn't planned like that.
Re:Star Citizen is likely in financial trouble
by troynt on Sunday June 25, 2017 @11:29AM
(#14630430)
Source? Not all loans are bad, it wouldn't make sense to plan on never taking a loan.
Re:Star Citizen is likely in financial trouble
by norswap on Sunday June 25, 2017 @11:48AM
(#14630551)
I'm pretty sure they blew through most of their estimates.
The projects was always hailed as one of the big crowdfunding break and nothing indicates they considered borrowing to finance the project given the massive amount of money they got and the time estimates they posted.
By all means, check for yourself.
Re:Star Citizen is likely in financial trouble
by adrusi on Sunday June 25, 2017 @12:19PM
(#14630734)
It would be irresponsible to operate entirely off of crowdfunded cash because that money could go a lot farther if properly invested. If you invest, then sometimes you need more cash that you have on hand. You could sell some of your assets, but if you can reliably anticipate they'd sell for significantly more at some future time (relative to interest rates), then you're better off taking a loan and then paying it off when you sell assets later.
Re:Star Citizen is likely in financial trouble
by troynt on Sunday June 25, 2017 @12:26PM
(#14630771)
Why would you assume a company would never use a loan?
Apple takes out loans and they have billions. There could be tax incentive to take out loans.