Post by
stillbob on Sep 04, 2015 10:40am
Transgaming begins NOW........
The month of Sept, 2015. They've cut expenses by $1 mill. a year but they were never going to be able to cut them enough to become profitable under their prior market strategy. I think that strategy was to offer new games with the hope that they would be popular enough to bring in enough revenues to more than offset their acquisition costs, which is risky and difficult to accomplish. Their new strategy is to offer a bunch of games that have proved popular but not necessarily new. They've teamed up with Smart TV and set-top box providers to get these games out to as many possible users as they can. To make sure these games work efficiently they've partnered with NVIDIA to get that company's cloud gaming technology and also with ActiveVideo to gain access to more outlets for the games. Their GameTree TV GOLD subscription based service begins THIS month and apparently they will now have more data available from their MSO's so that they will be able to monitor and adjust this service. They will then be able to add new things like Social Casino and others while withdrawing less successful games. They believe that they can become a "profitable company" by the end of fiscal 2016 (May 31st of next year). I'm an old guy and I like the idea of getting down to BASICS and then building from there which I think is now happening with TNG. As far as them not having any money. They have about $2 million in CASH now and NO debt. As far as whether this new model will work is anybody's guess and that's why the risk reward is so high for TSX-V stocks. I think it has a good shot and if it does we could do alright as shareholders. Also, they plan on selling Swiftshader and that could help the balance sheet even more. Bob