|Phantom Console Put On Hold As Infinium Labs Reveals Losses|
|Posted by: AceBHound on Feb 22nd, 2006 1:05 PM|
|Infinium Labs has revealed financial records indicating they lost $62.7 million in three years, with advertising costs being more than half of that. They have just made an arrangement to receive $5 million in funding from Golden Gate Investors which it plans to use to begin production of their Lapboard keyboard.
"This commitment gives the Company a funding path to begin manufacturing the Phantom Lapboard and to launch marketing and sales for the Lapboard which we target for mid-2006, allowing us to start building our manufacturing lines this year, and continue our initiative to launch the Phantom Game Service," noted Greg Koler, Infinium's CEO and President.
Many gamers believed the console to be vaporware up until it was shown at E3 and demonstrated on G4 TV "Attack of the Show", and rightly so as there were were only concept images and marketing fluff on the Infinium Labs website during much of its development. Even from the G4 TV demonstration it was hard to tell if the gaming service was just mocked up or actually ready for prime-time, as much of their demonstration was spent talking about the service than actually demonstrating it.
Unfortunately, even if the company were to do well with its Lapboard, it would need to prove to investors that their investments won't be squandered away on hype the next time around. Their stock sits at under $0.02 a share, which seems a pretty dismal place to be when you don't have a product out yet and have pumped more than $30 million into trying to get people to believe you do. Plus, with Xbox360 already out and PS3 right around the corner, who is going to spend money on a console that is most likely going to go the way of the Atari Jaguar? Their gaming service is an innovative idea to console gaming, but they're not likely to be the company that makes money off of it.