The makers of the Phantom gaming console - Infinium Labs - have revealed that they are all but out of cash already, without even having launched the system they hope will vie successfully with Sony and Microsoft for gamers hearts. A new filing to the Securities and Exchange Commission stateside reveals a bank balance of just $134,000 - and a 'capital deficiency' of some $4 million. A capital deficiency is the difference between what the company has coming in, and what it owes.

Given the amount of marketing spend needed to make a dent in the gaming market for a new console, and the fact that the company will need to spend a predicted $68 million within the next year, the future looks uncertain for this plucky upstart. Will the Phantom ever see daylight? A lot depends on Infinium's backers and lenders it would seem, with the new filing admitting that more capital must be found before a successful business plan can be implemented.

Here's that stark warning: "As reflected in the accompanying financial statements, the Company is in the development stage with no sales, a working capital deficiency of $3,962,226. This raises substantial doubt about its liability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern."

The console is supposed to launch on November 18th - we'll keep you informed as to whether this is likely to happen or not.

By Luke Guttridge

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  1. vinquus Unregistered 4 years ago

    I'm guessing... ... ...not.

  2. Sam 4 years ago Staff

    This comes as such a shock. But surely not as much of a shock as it is to the Hard[OCP] boys, who have had to defend themselves against lawyers upset at the intensity of that website's support for the Phantom.

    No, really.

  3. Jason 4 years ago Staff

    This will be interesting... have to see what happens.

  4. JohnPamplenoose Unregistered 4 years ago

    "... Infinium Labs ... are all but out of cash already, without even having lunched the system ..."

    They should breakfast it instead.