Anyone else concerned about MSG’s future?

Discussion in 'General Discussion' started by jamesleegte, Apr 4, 2022.

  1. shiet

    shiet Registered

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    At FAANG :D
    OK, average salary is ~$70000 and they have other expenses too. It doesn't change the fact that that $1.6M doesn't last more than a month.
    They lost -$8.5M in the last qtr so it was $2.8M+ loss per month.
     
  2. gianluca

    gianluca Registered

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    There is people with money behind them and the shareholders have their fortune too, so the company and S397 are relatively safe. Videogames are a long term investment for the developers and the producers and the big money comes from the console market. So they will start to make cash when the console versions of their games will be released.

    As an example: pCars 1 was funded with +2 mil by the community, 1.5 mil by the SMS and then get other money when Banday Namco joined the group. Development started in 2012 and the game was released in 2015. This with a studio of +100 employees. So it started to pay back months after the console release.
    Also, it's worth to mention that Ian Bell started the funding of pCars 1 with a system that was investigated and shut down by the english IRS equivalent.
     
    Last edited: Nov 20, 2022
  3. Emery

    Emery Registered

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    And currently those titles are slated for 2024. As of Friday, per the quarterly report, the cash to fund operations will run out before 2023 begins. If only NASCAR 21: Ignition were functional, they'd probably be able to swing it, but right now the AI still are DOA and that title has such a smell that customers won't go near it until somebody proves it is fixed.

    Yes, an angel investor could rescue MSG, but that announcement has to come VERY soon and the terms will likely be very unfavorable (loan shark level).
     
  4. Bernat

    Bernat Registered

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    Is it so hard to understand that MSG already has investors that don't seem willing to pull the plug?
     
  5. Emery

    Emery Registered

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    Is it so hard to understand that those investors have yet to put up the necessary cash?
     
  6. Bernat

    Bernat Registered

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    It's a financial report. They shouldn't be hiding their results nor the fact that they would like to attract other investors. They'll put up the cash when they have to.
     
  7. trichens

    trichens Registered

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    Taken from Form 10-Q for quarter ending September 30 2022
    Page 16...
    On April 1, 2020, the Company entered into a promissory note (the “$12 million Line of Credit”) with the Company’s majority stockholder, Motorsport Network that provides the Company with a line of credit of up to $10 million at an interest rate of 10% per annum, the availability of which is dependent on Motorsport Network’s available liquidity. On November 23, 2020, the Company and Motorsport Network entered into an amendment to the $12 million Line of Credit, effective in 2020, pursuant to which the availability under the $12 million Line of Credit was increased from $10 million to $12 million, with no changes to the other terms.

    It would appear that to date MSG have taken $3 million of the available funds

    Page 17...
    In the event the Company or any of its subsidiaries consummates certain corporate events, including any capital reorganization, consolidation, joint venture, spin off, merger or any other business combination or restructuring of any nature, or if certain events of default occur, the entire principal amount and all accrued and unpaid interest will be accelerated and become payable.

    Although it seems that there is an agreement on place which means that until June 30th 2024 Motorsport Network will not demand repayment on monies until MSG has sufficient cash available to run the business.

    During the nine months ended September 30, 2022, the Company did not repay any amounts borrowed under the $12 million Line of Credit and the balance due to Motorsport Network under the $12 million Line of Credit was $3 million as of September 30, 2022.
    Given the state of the financial markets, the Company continues to assess its exposure to any potential non-performance by Motorsport Network and believes that there is a substantial likelihood that Motorsport Network may not fulfill the Company’s future borrowing requests.

    Ummm...

    The newly appointed CFO is John Delta - formerly interim CFO. He was, and maybe still is, a partner in TechCXO who basically hire out executives to firms. His business profile mentions that he has been involved in restructuring businesses, selling assets and closing poorly performing units as well as fund raising.
     
  8. mister dog

    mister dog Registered

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    Here's an idea; why don't they start up a crowdfund with added participation in the development of the next Rfactor title? We can call it... 'World of Major Development' or WMD in short. :D
     
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  9. Gary_S85

    Gary_S85 Registered

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    It seems like the only options are either more shareholders funds, extra credit (unlikely in the current conditions), or, they offer preference shares...but this devalues the current holders. They would also need to explore changing the business model. But it seems like an excessive amount of cash to burn through - perhaps money wasted by buying up licenses etc.
     
  10. burgesjl

    burgesjl Registered

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    Latest information:
    Motorsport Games Enters into Equity Purchase Agreement (yahoo.com)

    As I read this, it says they've gotten a new investor who has put in an additional $2M and may put in up to $10M. The main issue with that, is that they have been spending $1.4M per month, so at the low end this gives them another couple of months - they claim to be reducing monthly outgoings, but there's only a few ways to do that without affecting dev progress. I don't see them actually releasing any of the upcoming titles (on consoles mainly) in that timeframe. So whoever this investor is needs to realize they are on the hook for at least a year. If its some naughty left-pocket right-pocket thing, then it'll soon get found out and they still need to find a real net new investor or more funds from existing investors. They have at least satisfied two of the 3 failings to remain on NASDAQ.
     
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  11. trichens

    trichens Registered

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    investor is... from their website
    Alumni Capital Management is a millennial alternative investment manager consisting of both alumni and students from various schools throughout the U.S.
    Firm was formed at the end of 2021 / start 2022
    The main people were previously with Triton Funds - another student run US funds
     
  12. Bruno Gil

    Bruno Gil Registered

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    while everyone here seems to be worrying about MSG's future, I worry about rF2's. I find it odd how I see nobody anywhere mentioning the *feedback problems. I was away from the game for about a year till a few months back and it took a while to figure out what the hell was going on with the BTCC cars, but now I've understood that every car with the newest tire model is completely borked in terms of feedback. Tire scrub noise feedback is completely gone and only kicks in when you throw the cars in a massive slide. And there is something really strange about the force feedback, but I can't really understand what it is. This game had ONE pro against all other sims and apparently the first thing in MSG's todo list was getting rid of it completely.
    Once again I find it really strange nobody anywhere is mentioning this (apart from the guy in the OP video mentioning how something was off about the dallara), so I hope to hear your guy's thoughts.
     
    Last edited: Dec 13, 2022
  13. Lazza

    Lazza Registered

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    There is no new tyre model.
     
  14. Bruno Gil

    Bruno Gil Registered

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    Well a teammate mentioned they updated the tire model on the GTE cars and I noticed they suffer the same issues, so I assumed that was it, but I do not remember anything about a new tire model either. However the issues I mentioned are definitely present in the cars released at least since the BTCCs were released
     
  15. Bruno Gil

    Bruno Gil Registered

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    I do think I remember something about the GTE tires being updated though, and I was just testing again and while they do have the issue, the GT3's for example don't, so something is different
     
  16. gianluca

    gianluca Registered

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    The guy in the OP video is an employee of Ian Bell, the former CEO of Slightly Mad Studios. That should ring you a bell. You won't hear nothing good about RF2 from him. Especially in the next years.
     
  17. Bruno Gil

    Bruno Gil Registered

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    That argument is not really an argument. One might be biased and still make a good point.
    Anyway, just checking discord and there has been definitely a tire model update since everyone there was raving about it just yesterday. Apparently everyone loves it and I'm the only one complaining... I do think the way the tires handle is correct, there is just no feedback from them
     
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  18. davehenrie

    davehenrie Registered

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    GTE cars & the Oreca LMP2 got tire & sound updates for the Virtual Le Mans season. GT3 did not. There is a distinct difference between the older sound of most of the cars and the new sound engine that cars from about this summer on(and the previously mentioned cars) have all benefited from. It may not be to your liking, just as the tire improvements also may not seem 'familiar.' Tires are now responsive to the environment more so than in the past. Yet more things to keep track of while driving and setting up. Also, for next time you try rF2 18 months from now, pay attention to the radiators....
     
  19. Bruno Gil

    Bruno Gil Registered

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    like i just said, I have no gripes with the handling itself and the degradation etc might indeed be better, but there is NO FEEDBACK from the tires like there used to be. There is absolutely no tire sound until you are sliding waaay too much, and on the ffb sidde it seems like the amount of load you put in the front tires does not translate in a varying amount of force at the wheel (this isn't exactly it but I can't explain it any better atm), and/or mostly no ffb difference between when the tires are sticking or sliding. Say what you will, both things are objectively wrong and pretty easy to test on a real car.
    Every league racer I spoke to about this (concerning the BTCC) notices something is definitely strange about the cars, even though most didn't figure out what it was until someone pointed it at them. I understand for casual racers it might be harder to spot, but once you're trying to drive the limit consistently it becomes pretty obvious, especially if you jump in an older car afterwards - or any other sim for that matter
     
  20. Lazza

    Lazza Registered

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    The GTE I've driven have good sounds, including tyres, but you need headphones or good speakers and get used to the new sounds - the tyres don't scream over the top as some cars do, or used to.

    There are updated tyres (better construction, better handling) and new sounds to go with the new engine, but no new model. This isn't just a matter of semantics; when things are labeled incorrectly they can gain an unwarranted life of their own, just like when the GT "slidey tyres" conversations were at full steam I saw many references to the "rF2 slip curves", when it was the tyres. (as now proven by the better recent tyres, running on exactly the same model)
     
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