Starting a business is not easy. Especially a mfg business that requires substancial startup investments. You never, ever use deposit money to pay overhead... ever. This is what happens. Use the deposit funds for parts and production cost (of the unit). After the product sells, what is left is you profit. It may take years for a new company to turn a profit. The investors need the staying power to stay lean and live off of other funds until profits start. It seems pretty clear what happened here, deposits were used to fund overhead and startup, now its clear no money to actually build the games.
I hope the investors are able to allocate deposits back where they belong, to each game and depositor. I would like to hear that from them.
Its concerning that the initial communication was not an email to depositors first. I know pinside puts a lot of pressure to respond, but it should first go to the depositors by direct and personal communication. I have a deposit since February, and have not received a single email regarding the status. Nothing. I have been supportive, but like others, getting close to a pullout.