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

from the just-saying... dept

Mon, Jan 23rd 2006 5:58pm — Mike Masnick

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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8 Comments

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Justin Dale, 23 Jan 2006 @ 6:25pm

produce nothing, recieve everything
so basically a bunch of guys got together and said lets make a bad system but cook the books so we can make alot of cash and run off, just goes to show the US isnt the only horribly corrupt country
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Adam W, 23 Jan 2006 @ 6:57pm

No Subject Given
I wouldn't say corrupt so much as complacent. Every community has a criminal element, the issue is, do you tolerate it or not? Well done to Techdirt at least for pointing out the bleedin obvious when those who should know better (the media, financial houses, law enforcement) cannot be bothered.
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Anonymous Coward, 23 Jan 2006 @ 9:53pm

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.
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Scott, 24 Jan 2006 @ 5:44am

Re: saw it in expert gamer mag bout a year ago...
Using your logic a 150 year old card game maker would not have been able to come to market with what jumpstarted the current gaming world.
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haggie, 24 Jan 2006 @ 11:00am

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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Crispin, 20 Apr 2006 @ 9:44pm

Latest
And now one of them has been charged with theft of two Ferraris and a Merc, and he crashed one of the Ferraris.

Idiot.
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