Monday, November 24, 2008

CGS rant

CGS says they closed b/c "projected profitability was too far off"

Um, how was CGS going to EVER be profitable?

CGS is dependent on sponsorship dollars right? How do you make a profit when that is the case? If the sponsor sees you banking a lot of profit they say "hey CGS, what am I paying you all this extra cash for exactly?" Next time CGS will get less money from the sponsor, because CGS can't really do anything about it. CGS you DEPEND on the sponsor, you have NO LEVERAGE and therefore you get NO PROFIT, EVER.

Did CGS think people were going to be filling stadiums a la the NFL paying $100+ for a ticket, $10 for parking, $5 for a hot dog, $8 for a beer and $125 for a jersey after 2 years of being in business? Honestly I hope this happens with eSports someday, it’s just not going to happen quite yet. If this was their idea, then you have to expect it will take more than 2 years to build up. Look at MLG; they are just starting to kick it in the mainstream after a lot more hard work and time than the CGS put in.

What was CGS’ plan exactly? Take a game like CSS instead of 1.6 and change all the rules so that it is "TV friendly;" even though no one watches your league on TV. Make it so that aspiring pros are blocked off and can't play against CGS "pros" (save the too little too late pro-am tourney). Then broadcast the games on DirecTV channel 489484...when everyone that's into eSports can already watch on their CPU? Hello? EVERYONE that plays or is into eSports does it on their CPU. Not everyone has DirecTV; the only reason to put CGS on DirecTV is if you intentionally want to only reach a fraction of your target market, and by the way, for that fraction that you do reach, you are inconveniencing them. This last point really should tip you off that the people running CGS need to get a clue about eSports. If the people at the top don’t know what they are doing, you shouldn’t be surprised that the company is out of business.

Summary: Take a bunch of execs w/ backgrounds in cable TV that have never played a video game and start a eSports company = fail

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