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Gizmondo reports "cashflow issues"

January 17th, 2006, 19:23 Posted By: wraggster

Tiger Telematics, the parent company of the firm behing the Gizmondo has reported that it has been "experiencing severe financial pressures (...) as its cash flow has been unable to service the requirements." In layman terms that means the company hasn't been selling enough Gizmondos. The firm is apparently looking for additional funding "but there can be no assurances that this will be achieved."

When the two main investors in Gizmondo (David Warnock and Simon Davies, who provided loans of approximately $21.2 million) still haven't received a return to their investment, it's not surprising to see that the company is having trouble finding new investors. Hopefully these financial problems will motivate the firm to do the only thing that could make the Gizmondo a success: release some games that aren't "uniformly terrible".

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