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Chinese online game market operating in loss
When many of us think about MMOs, we think about companies who rake more money than we could dream about. Enough money to put together a scale model of Paris made out of 20 dollar bills.Yet the truth is that many of these companies are operating in loss, as a recent article published in the Beijing Times has shown. Over 70% of Chinese online game companies are spending more than they are earning, while only a few notable names, like The9, the operators of World of Warcraft in China, stand to even make a profit.Many games spend more in development and marketing costs than they stand to make in monthly subscriptions, leading to these problems occurring in many companies in the market. Analysts say that for every 10 online games made, only one stands to be a profitable venture.For the full report on this, check out the article over at TradingMarkets.com.
Infinium founder charged with using "impending Phantom launch" to inflate and sell stock
Timothy Roberts, the founder and former CEO of Infinium Labs, the company that promised us the Phantom (which came in at second on Wired's list of vaporware products of '06), has been accused by the Securities and Exchange Commission of artificially inflating stock and selling it on at a $422,500 profit. The SEC alleges that Roberts hired a promoter to send junk faxes to investors citing the Phantom's imminent launch, when in fact the console had postponed the launch due to insufficient funds. According to the SEC, Roberts then sold 1.3 million shares from the company -- without any disclosure -- and secretly paid the promoter he had hired. These two actions, unfortunately for Roberts, are against the law: the SEC has asked a court to force Roberts to surrender the cash, pay a penalty and to prohibit him from ever becoming a CEO again.Meanwhile, the company -- sans Roberts -- has blown through $63 million without producing the Phantom and has lost another CEO yet still claims to be relevant and capable of launching The Phantom along with a useless lap-based keyboard accessory. Someone put the company out of its misery. Pretty please?[Thanks, Neal]
