Quoted from jungle:
100 x $7500 = $750,000 less a bulk discount ? I don't suppose Joe will tell us but any of you businessmen care to guess how much CASH is in JJP's account NOW.
Probably not much if they're continuing to fit out the factory and hire more people, whilst developing more games. I'm sure that cash helped keep the lights on and pay people's wages, but it will have been gone long ago and their sunk costs will have been massive, and I assume the investments in the company announced last summer will have dwarfed any pre-order money.
Start up manufacturing operations tend to be hugely greedy on cash. One of the things they have to be very wary of is taking on too much debt or selling too many shares in the company too quickly for investment, as cash flies out of the till so quickly. Further lending or VC rounds can then be very painful.
I invested in a startup manufacturer a couple of years ago (different sector) who are doing very well ... but the cash has typically lasted them a quarter of the time they anticipated for each of the latter funding rounds, as they ramp up production, buy more machinery and hire more staff. By my understanding, this is pretty typical.