MSGM lays off about 40% of staff

Hope the fellas at studio 397 are spared from this. Bloomberg reports the layoffs are mostly in Australia and the UK so not sure where they all reside.
https://insider-gaming.com/layoffs-hit-motorsport-games/

 

What the hell happened to journalism? These stories read like trashy gossip magazines.

Just for anyone else's benefit: they're estimating 0.4-0.5 million in severance and redundancy payments for the 'approximately 38' employees.

 

anyone up for a whip round to buy S397 out? We could call it a Community Crowdfund Purchase, save them before the ship totally sinks.

 

Good Journalism went out the doors yrs ago, now you get 10% maybe 20% facts, then you have to research to find out the rest. Just like you have provided.
@mogwai As for S397 being spared they are the developers, MSG is just the owner, also doing all the work for rf2 & LMU they are safe as houses.

 

Reducing the price of DLC could be a big injection of money.

 

You mean like when they changed it so you only need to own the track and the car you're driving?

 

Yeah sorry Lazza. I should have posted a link to the SEC filing.

 

Hope so because it seems like studio 397 is the best thing they have going for them. Maybe this buys a few more months of liquidity runway for MSGM but those " going concern" comments in their quarterly reports aren't likely going away after this either.

 

MSG has sold the Nascar License to iRacing.
It's logical that they don't need the same amount of workers.

 

The internet. When all the credentials you need are " FPS fanatic, social media guru, and a father." instead of a university degree in journalism.

 

New Race Control for rf2, new sim LMU. I would wait until after the 1st quarter report of next yr before having any concerns at all, if any.

 

Absolutely not the case. You have it backwards. They have had a going concern warning in their Financials for months and last quarter they said they may sell IP to meet cash needs. The fact is these people were laid off now is becuase they are desperate to recover cash flow and reduce expenses.

 

Wait, you may have misunderstood me. This is a firm that has said they have a going concern. A going concern isn't my personal option, it's about their financial condition and is relate to an opinion about their future. It refers to their ability or inability to have sufficient cash flow to cover expected expenses. https://www.investopedia.com/terms/g/goingconcern.asp

But hopefully this buys the company enough time and cash flow to fund the development of all those things.

 

As per your link, 'going concern' doesn't have anything to do with 'concerning'.

@mogwai sorry, I've probably also misunderstood though in a different manner. I thought you were saying the quarterly reports mentioned 'going concern' in a negative manner, but I suspect you mean that if/when the company gets into a better position it will no longer mention it at all.

 

Economics doesnt work that way. Price elasticity is A Thing.

 

How many of you here have bought all the AC or ACC content, being a product to which you have dedicated 1% of your hobby time? How many AC/C fans have purchased any rF2 content? How many people buy a launch video game and how many buy it when they find it cheap? rF2 is missing the opportunity to sell its product to an immensely larger audience due to the high price of its content.

 

Selling more doesn't always give more benefit, specially if you are already cheap and don't charge for other services.

I haven't bought any AC/ACC content and I own most rF2 content. When I have more time I'll get into FE and karts. Include me in your metrics.

Being able to race owning only your car and the track is as cheap as you can get. They need income to keep updating the engine, the content and run the online servers. And if all this has to be paid from DLC they can't gift it away. What you buy it' yours forever and you get a lot more than a car or a track. AC and ACC users are on their own after a while. They have to rebuy everything every 5 years or so. How is that cheaper? And let's not talk about the paying fest that is iRacing.

 

Bought all the ACC and AC content.
Most of the AMS2 stuff (even though I barely play it anymore).
85% of R3E content.
Maybe 35% of the iRacing stuff (given that up now, just couldn't get on with it).

If its interesting I buy it.
Simples

 

Ah yes the insightful armchair finance expert post, will detailed analytics, graphs, knowledge of the internal workings of the product, experience in the gaming software sector etc etc

If in doubt, shout about stuff you have no clue about, that'll change EVERYTHING

 

I am not an expert but I am guided by other companies in the video game world. In all of them the product has a launch price and after a while it drops as well as its DLCs. Maybe rFactor is the only product where this system does not work, the other products use this method to increase income. I suppose you think that if s397 releases a dlc for €100 you will make more profits than if you sell it for €10.