it would be easy to spend $900k on prototyping if you had every piece of stainless custom made to size, strength and specs - and certainly took more that one try per part. I understand everything from cabinet to BG size is different than any past pin. I cannot recall, but some of the vendor posts said they were being paid up until late 2014?? Which would mean at least some $ went vendors and contractors before 2015?
There is a lot of money that was spent on design and prototyping parts that was spent, but did not result in 10 final parts sitting on a shelf. There is still more $ sitting in playfields, and working mechs on a least a few games.
But its a big chunk of $ in parts, prototypes, spent with fabricators - there is probably nothing in the bank account, but there was a lot of money spent b/c it was nearly ALL custom parts. I could easily see $12k in BoM on this game if you design a custom part and only hand-make 19 of them.
Ask Terry how much just a tool/bender/custom fabrication unit is for a part. Lets say a lockdown bar tool/fabrication setup costs $10,000. At $100 retail, you need to sell 100 units just to break even on the fixed costs. Say there is $50 material and $25 in labor in each unit. $at 25 gross margin, you need 400 units to cover variable and fixed cost just to break even. And only then do you make $25 in profit starting at unit 401.
Zidware Jpop designs the same part at $10000 plus $75 to make each unit and makes 20 of them. thats $500 fixed cost + $75 variable cost PER part. $575 for the custom, $100 for the standard.
It would only take 100 parts at $10k design/proto and final tooling to add up to get to $100,000 in cost. If its 200 parts and it takes 5 tries at $10k each thats a million. And you still only have 200 custom parts. The you need software, boards (all custom from what I know), playfield printing, art iterations with Jeremy, plus you'd need to add on assembly labor.
I can easily see $1000,000 gone without having more than a few games, and lots of tooling for the custom parts. BUT thats just the "get all done for planning out the design and parts". So where's the cash to actually pay labor and the factory and the actual parts made from the prototyping.
Enter Pintasia - they buy the license rights to all the tooling and the art. That's IP, not much actual hardware parts in hand, so I would say its likely the assets cant be turning into cash unless you spend the next $100k putting the game together, and maybe finish proto on 5 or 6 remaining parts.
Bill takes it to NW - if reception is good, he adds another couple $100k to risk building and getting the rest of $ or new orders to make & deliver all the games orders - or make as many as folks signed up for in the June 30 agreement, and refund those that decided to not sign up by June 30.
If Pintasia goes to NW and reception is bad - walk away, lose his game and the $100k - he is willing to toss that as "at least I tried", but I can afford to lose it all, but if it works, we might not lose money (I don't think he's going to make any, even if the all 125 pre-orders either get games or a combo of games delivered and refunds. WHat the June 30 deadline letter says is No refunds guaranteed, but Bill has said in this god-awful long thread, that his plan is make all 125 folks whole - you have to take his work for that, as I don't see that in the Pintasia offer letter.
Or if you don't sign or Pintasia gives it a go but decides to drop it due to lack of participation - good luck in suing Zidware or John - you can fight over the tooling and Cad drawings - there isn't any $.