Star Citizen Devs Assure CIG Game Studio Isn’t Running Out Of Kickstarter Money

Star Citizen
Star Citizen faced reports of financial trouble, but Cloud Imperium Games recently spoke out to deflect them. Recent loan advances were described as a “smart move” for future funding. Star Citizen is in alpha on PC. Cloud Imperium Games

Star Citizen has been a focus of internet turmoil since its inception, and after raising more than $140 million from Kickstarter backers, the game’s development studio has been targeted once more. This time, studio heads were forced to deflect claims that Cloud Imperium Games essentially belonged to a bank in the U.K.

Following a now-deleted report from Press Start Australia , CIG co-founder Ortwin Freyermuth posted a clarification on the subject. Select portions of his statement can be read below.

“Our U.K. companies are entitled to a Government Game tax credit rebate which we earn every month on the Squadron 42 development. These rebates are payable by the U.K. government in the fall of the next following year when we file our tax returns. Foundry 42 and its parent company Cloud Imperium Games UK Ltd. have elected to partner with Coutts, a highly regarded, very selective and specialized U.K. banking institution, to obtain a regular advance against this rebate.

“Given today's low interest rates versus the ongoing and uncertain currency fluctuations, this is simply a smart money management move, which we implemented upon recommendation of our financial advisors.”

The full statement goes into further detail as to why this decision was necessary, but it basically boils down to two factors: with offices in the U.S. and U.K., currency conversion between countries gets expensive. Also, considering England’s uncertain financial situation following Brexit, CIG’s financial advisors feel it’s in the studio’s best interest to take the money now instead of possibly having to pay more for it later on.

With that explanation in mind, Freyermuth also adds that all of this financial business only relates to Foundry 42, the studio developing Star Citizen’s Squadron 42 single-player module. While every branch of the project is still related, what little impact there is only applies to that one portion of the project and nothing else. The statement also says CIG stands behind the loan and guarantees repayment as soon as possible.

Simply put, Press Start’s initial report on the subject has seemingly been discredited for providing its readers with false information. That being said, the “fake news” likely appeared to have a ring of truth given Star Citizen’s lengthy development cycle. Star Citizen was first revealed as a concept in 2012 and originally slated for a full retail release in 2014. Now, three years removed, the project is still in its early alpha phases as its ambitions continue to expand. Last year, Kotaku published a lengthy report detailing development difficulties, poor management and infighting amongst staff as key points of distraction.

All controversies considered, however, CIG continues to post weekly development updates while selling new ships to passionate players. Over the past two weeks, CIG has noted that final lighting and environment designs are being built for the game’s first solar system . Its larger 3.0 alpha is still projected to release this year.

Star Citizen is available now for backers on PC.

Are you satisfied with CIG’s official statement? Will Star Citizen run out of money before it’s complete? Tell us in the comments section!

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