I formed this opinion through observation and analysis.
When you see where things are now, and look at things he's said over the years in interviews, seems like he always planned to get bought out.
Not saying he PLANNED to fail, but he got himself into a situation where a buyout was the only way to succeed.
As GLM said, his business model was never sustainable. Nuts and bolts aside, certain one-time costs are very high, specifically code. It's tough to amortize these across 100 games, let alone 20! It's just not worth programming 20 of something.
John compounds the problem by adding RAZA and AIW into the mix. Now he's got THREE games that need code, when even ONE was impossible.
And yes, assuming the money is nearly gone, even if the games were done he'd need the inventory to build them. They're complex so let's say 5k BOM each (plus labor)
That's where you get an "unfunded liability". He owes 100 RAZA, but the money isn't there to build them. Thus unfunded. Sure the back end of the RAZA deposits is still due, but if it's less than 5k each, you still don't have enough money to build them.
"The solution is to just sell MORE of each title!" In theory, yes. But you can't just say "we need 500k, so let's sell 50 more RAZA at 10k each!" because then you don't have the capital to build the 50 you just sold. (This is how many, many businesses go under)
What you'd have to do is this:
1) Need 500k?
2) Profit per RAZA is 4k
3) 500k/4k = sell 125 more games