As of 2022, according to its financials, the company has spent $637 million on development, with 2020 – 2022 averaging over $106 million a year. Assuming that the company continues spending around $100+ million a year, it doesn’t take a mathematician to realize that the $790 million raised so far at the time of writing is on the verge of, or has likely, run out.

No, the article is claiming $700M in development costs—based on $637M spent by 2022–and $790M raised. They’re speculating that the company is going to run out of money soon.

[+] Cagi@lemmy.ca -21 points 1 month ago* (last edited 1 month ago) (1 children)

So they made over 150 million in profit so far, make more and more money with more and more players every year and that's a sign they are failing? "STEADILY GROWING PROFITABLE BUSINESS IS DOOMED TO FAIL!"

The speculation of gaming journalists is the worst way to get reliable and responsible gaming news.

[–] athairmor@lemmy.world 23 points 1 month ago (1 children)

That’s not how you calculate profit. Their revenue might exceed their costs so far but they have to keep spending. The game isn’t done and it costs money to just keep the lights on.

Look, I don’t know their financials. I’m just correcting what you claimed and pointing out what the article is claiming which is that their spending appears to be outpacing their revenue.

[+] Cagi@lemmy.ca -18 points 1 month ago* (last edited 1 month ago) (1 children)

I actually do appreciate the clarification then, thank you. But I'll still suggest to the readers of this convo, articles like these aren't written for the edification of its readers, it's written to bait engagement. The speculations of gaming journalists on Star Citizen is as reliable as Fox News' speculation on the Mexico/USA border.

And as someonewho has been following following the numbers, it's growing in revenue and daily active players every year. They just opened a massive new office in Manchester so they can hire more people. The people they do hire get paid well and stick around for years. If they were worried about cash flow, they have a lot of fat they would be trimming right now, but their expenses and revenue keep growing in step with eachother. They have no investors to pay, no vaults to fill. They make money and spend it growing the business. Those expenses represent 12 years of good wages and benefits for workers.

Star citizens success is a threat to capitalist, investor focused gaming. Gaming news is run by game industry capitalists and has zero oversight or accountability for bring truthful.

[–] Silentiea@lemmy.blahaj.zone 1 points 1 month ago

Pretty much all articles these days are "written to bait engagement". Even the ones that are also "written for the edification of [their] readers".