T.Tashi
01-23-2006, 10:51 PM
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 (http://news.techdirt.com/news/wireless/article/5321) 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 (http://www.techdirt.com/articles/20050929/1138245_F.shtml), 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." (http://www.techdirt.com/articles/20051024/1824230_F.shtml) 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 (http://www.redherring.com/Article.aspx?a=15419&hed=Gizmondo%20Unit%20Files%20Bankruptcy§or=Industries&subsector=Computing), 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?
Source: http://techdirt.com/articles/20060123/1757245_F.shtml
Source: http://techdirt.com/articles/20060123/1757245_F.shtml