Tiger Telematics $325 million in the hole

September 27th, 2005, 21:18 Posted By: wraggster

Most businesses aren’t immediately profitable, we know that. You’re very lucky if your startup—especially if it’s a tech startup—isn’t in the hole for a number of years even after taking off (see: TiVo). But according to an SEC filing on the company we love to rib, Tiger Telematics (makers of the Gizmondo portable game system), the company lost $11.1, $8, and then $99 million dollars in 2002, 2003, and 2004, respectively. Ok, so that’s a pretty steep incline in losses—more than 10x in one year?—but, man, someone must have gone to town between January and June of this year, because their operating losses for the first half of 2005 are already at $210 million. So basically to pull this all together: Tiger’s in the whole for $328 million with a faltering business model selling a perpetually unsuccessful console competing against the PSP and DS—and to add insult to injury, they’re licking their wounds with a continuing series of self-aggrandizing press releases. Seriously, do we really have to spell this out any more?

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