Next Time: Spend Less On Expensive Cars, More On Actual Product

from the just-saying... dept

Gizmondo, the UK maker of a gaming device that was marketed as being a competitor to the PSP or the Nintendo Gameboy products, never made that much sense. The device was less compelling and more expensive than its competitors — and had no name recognition in the brand to cover up any problems. Also, the company planned to make more money by throwing advertising on the device — a plan that would only make the system even less compelling. Of course, moving away from the actual system, the company clearly had other problems. Many of their execs were somehow making over a million dollars, while a few received luxury cars — including one valued at nearly a quarter of a million dollars. Then, of course, there was the fact that some of the execs had been convicted of “forgery, fraud, counterfeiting, and blackmail.” All of that might make you wonder if there’s more to the company’s filing for bankruptcy. While the press is spinning it as an expected move due to weak product sales, isn’t anyone questioning why the execs were allowed to take so much out of the company into their own pockets, only to file for bankruptcy so quickly, allowing the company to avoid paying back creditors? The company did just raise a bridge loan of $5 million to try to keep going, but you have to wonder who’s watching what the company does with that money?

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Comments on “Next Time: Spend Less On Expensive Cars, More On Actual Product”

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Anonymous Coward says:

saw it in expert gamer mag bout a year ago...

who woulda bought the damn thing? I mean, maybe if it was Sega’s, but they lost it with the dreamcast, now they stick with software. if its from some out of the way company like the gizmondo, dont even think of buying it since they’ll probly try to to do the same thing in the article.

haggie says:

No Subject Given

The product was obvious vaporware from day one. Everyone and your brother knew these guys were crooks. Anyone who invested in this company was a.) moron or b.) a greedy moron.

This is no Enron or Worldcomm where previously reputable people use incredibily complex financial techniques to take advantage of the system thereby defrauding a wide range of groups (investors, employees, the general public) and causing massive damage.

This example is like buying a stereo out of the back of a panel van. You know its a probably a scam but you are being greedy and you get ripped off. Why should I feel sorry for you?

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