Wow....CIG just DUNKED on CryTek. I hope CIG goes after their IP since we know they dont have any money left.

This was posted by Abrushing on Reddit:

"So, the data I have available for comparison is all from private companies, meaning I can't divulge names and details due to SEC and FINRA regulations. Public companies would just issue an unsecured (no collateral) bond and be done with it. Collateralized loans are more common and help a company obtain a lower interest rate than an unsecured line of credit would. The loan agreements I have all state LIBOR/US Prime Rate plus 0.5% to 1.0%.

Last year, CIG was owed a tax credit of £3,319,220. 2015 was £3,115,774, so I'll just average it to about £3,200,000 for simplicity. Now, CIG could be sending this over from the US, but the exchange rate over the past year has been all over the place, to the tune of .75 to .82 GBP per USD converted. Note that this conversion rate means the lower ratio is, the weaker the Dollar is to the Pound. Rather than risk losing money to a volatile conversion, F42 opted to take the advance on their tax credit and minimize the loss.

Let's assume they did it at Friday's (6/23) conversion rate (about 0.79). They could move $4,050,633, which would convert down to £3,200,000 for an accounting loss of $850,633. Alternatively, they could take a collateralized loan. This is a short-term loan on the tax credit they are due at the end of the year, so I'm going to assume the bank used the 1-year LIBOR rate to give them time to do their taxes and actually receive the credit to pay it back.

1 year GBP LIBOR as of close 6/23 was .667%, so using the riskiest range I found on commercial collateral loans, I'd say their loan would be 1.667% under this assumption. For fun, let's go even higher and say this loan is at 2%. So, a loan of £3,200,000 at 2% means they are paying £64,000 of interest, or $81,013

So there you have it. By getting the tax credit loan advance in Britain instead of sending money from the US, they are saving ($850,633-$81,013) = $769,620. Remember, this is only an assumption based on available numbers, so they won't be exact. They should be somewhere in the ballpark, though.

Edit: Grammar, currency symbols, and disclaimers.

Edit 2: I finally read the public loan doc, and they are getting a base rate of 0.25%, so their interest cost is actually going to be around $10,000, if that, so they are potentially saving over $800,000."

@Louis: You only have one chance at a first impression. If the game were to release on a small scale, they'd have a much smaller player base. As they increased features, their player base would slowly whittle away until there was too few to play to pay for the expansions.

Not only that, but it's much more difficult to add new features to a completed game than it is to add them to a game in progress. It breaks too many things.

@Mogan: And that's a fair position to take. I don't agree with it at all, but it's not unreasonable.

Those calling it a scam are morons though.

@stardagger: Games take time. Just because you're used to hearing about a game 6 months from release doesn't mean that's how long it takes.

Diablo 3 took 11 years. Overwatch took 9 years. Team Fortress 2 took 9 years. Yet, all three were huge hits.

@Flyin3lvl: When you order something on Amazon, and it's not magically in your hands immediately, does that means you "paid for nothing in return"?

@Rifleman22388: Makes sense. I'm really lookin forward to 3.0. It's going to be that first real taste of CIG's complete vision(albeit on a smaller scale) for this game.

@Raidendude153: It's two full games being developed concurrently, with a modified FPS engine. There's tons of moving parts.

The other thing is most largescale AAA games have all sorts of issues and setbacks during development. We just never hear of them because it happens well before the game is even officially announced. Hell, many games are cancelled before we even find out they're being developed.

But really, setbacks are just part of the process. You're not painting by numbers. You're solving problems on the fly as they come. Some take a day to fix, some take weeks. Game development is more creative problem solving than building.

@GarGx1: "Eventually we'll be able to use it inside and outside of the game."

This is what I'm really excited for. The ability to blend the two sides into one is going to be a powerful tool.

@Jarten: They'll be doing VR, but not till the game is close to release. The game's core code is in too much flux to bother with VR, as every update would break the support.