72 pages of comment...
Did someone from Frontier took part to this conversation to clarify?
Post of the morning!
TMSoon .... ??
72 pages of comment...
Did someone from Frontier took part to this conversation to clarify?
We are not talking about other titles. We are talking about how long FD considers it "useful" to continue developing the Elite franchise. That is currently estimated as a total of 7 years according to their statements in their Annual Reports. Do I expect the game to be shut down immediately after 7 years? Of course not, they can keep the servers running for a trivial cost (due to the game's P2P architecture) and can likely continue making rather lucrative sales of cosmetics. It would not be reasonable however to expect any significant new paid content expansions beyond that point in time.
As an aside, who the hell believes in tax statements as a statement of truth? Buisness constantly make their finances appear more solid then they are, this is why accountants get such big money.
None of the banks that collapsed in 2008 had tax returns that reflected the true over extention of their finances, they were all disguised by the accounts.
If the game continues to be popular before during and after the stated date of 2021 do you not imagine its possible that Frontier might consider continuing active development and thus add more content that will be free to the LEP crowd?
We are not talking about other titles. We are talking about how long FD considers it "useful" to continue developing the Elite franchise. That is currently estimated as a total of 7 years according to their statements in their Annual Reports. Do I expect the game to be shut down immediately after 7 years? Of course not, they can keep the servers running for a trivial cost (due to the game's P2P architecture) and can likely continue making rather lucrative sales of cosmetics. It would not be reasonable however to expect any significant new paid content expansions beyond that point in time.
When FD gives an estimate for the "useful economic life of the franchise" and this estimate is reduced from 8 years to 7 years that is not referring simply to "monies". It is referring to the point in time where they consider their obligations for Elite development to be fulfilled in terms of deferred LEP revenue.
Think about that for a second. They have told their shareholders that LEP money will be full earned by the end of 2021. What possible reason would they have to deliver more paid content to LEP owners after that point in time? They will have reported the entire amount of LEP revenue in their Annual Reports alraedy. Why would they put more development effort and resources into Elite when their shareholders are seeing no more deferred revenue? Why wouldn't they put those development resources into another franchise that would represent a new source of revenue for shareholders?
Did someone from Frontier took part to this conversation to clarify? Sorry I couldn't check.... 72 pages is a book, I couldn't read them all!
Think about that for a second. They have told their shareholders that LEP money will be full earned by the end of 2021
Because at that time, the franchise still had more life in it than their estimates in 2017, just like it had less life in it 2016 vs 2015?
Just like we shouldn't make wildly unrealistic assumptions that Elite: Dangerous has 20 years of life in it, we shouldn't also treat 2017's prediction of franchise lifespan as set in stone either.
If 2020 rolls around, and Elite: Dangerous starts receiving an influx of new players due to a current space game reaching the end of it's franchise life span, Frontier is not going to say in 2021, "Sorry, we're not going to continue to develop this game, because we promised to quit by the end of this year. Yes, we had a lot of cool ideas that we figured we'd never get to, but we said in 2017 that there was only four and half years left of life to this game, and even though we were clearly wrong, what can we do? It's all there in black and white."
Frontier's estimate for Elite: Dangerous' life span has changed, and it could change again in the future. The state of certain space ship games in development is very different in 2018, as compared to 2016. Times change, and successful companies change with them.
We also do not know for certain the state of Frontier's "skunk works" projects for Elite: Dangerous, only that they have said that they are working on them, and have been working on them since 2012. They could be in a pre-alpha state, or they could've passed their internal betas, and are just waiting for the team responsible for creating things to do and toys to use in those new environments to finish up their work on Beyond. We don't know, and we won't know unless Frontier becomes more expansive than they have been lately.
The only thing we should take away from Frontier's 2017 financial report is that if the current trends from 2017 continue into 2018, the 2015 LEP purchasers will likely break even at worst, and if they offered a LEP pack today for anything more than $60, I wouldn't take it, because I expect LEPs to be a bargain at the price, and not a gift card instead.
Which is why I bought mine when I bought the Alpha. I've already broken even with Horizons. Everything after that is pure gravy.![]()
I've said before .. I'm amazed LEP funds have lasted THIS long, let alone another 7 or 8 years! Any serious investor can't expect that money to last forever and (again) it doesn't rule out incomes from paid expansions which haven't been released yet. They can't be 'reported' yet. They just can't.
They earned around several millions from LEP owners.
That's like 0.5% of money they have earned with ED so far.
Like seriously.
The problem here is that they will have only delivered 25% of the value of the LEP by the end of 2018. That is 25% of that value in 4 years, with only 3 years left in the useful life of the franchise to deliver the remaining 75% of that value, i.e., $135 USD. Are you suggesting we are getting three times the amount of paid content we had in Horizons and it is all going to be released in the next 3 years from 2019 to 2021? Especially when FD has a stated goal in their Annual Report of releasing a new franchise every year that is obviously going to take priority over any Elite development, just like it did with Planet Coaster and JWE?
Think about that for a second. They have told their shareholders that LEP money will be fully earned by the end of 2021. What possible reason would they have to deliver more paid content to LEP owners after that point in time? They will have reported the entire amount of LEP revenue in their Annual Reports at that point. Why would they put any more development effort and resources into Elite when their shareholders are seeing no more deferred revenue? Why wouldn't they put those development resources into another franchise that would represent a new source of revenue for shareholders?
Because at that time, the franchise still had more life in it than their estimates in 2017, just like it had less life in it 2016 vs 2015?
When they have the option of putting those resources into a completely new franchise instead that will appeal much more strongly to their shareholders, instead of one that has reached the end of its "useful economic life"? No I don't see them putting any new development resources into Elite at that point. They didn't even put the necessary resources into Elite to develop multicrew properly during Horizons and haven't expanded it in the past 15 months since it launched. To think they are going to suddenly put in the resources needed to deliver new paid expansion content beyond 2021 makes zero sense here.
They didn't even put the necessary resources into Elite to develop multicrew properly during Horizons and haven't expanded it in the past 15 months since it launched.
If it was their only projected income for the product, then you might have a point.
But its not, so you don't.
Your understanding of deferred revenue, accountancy practice and business planning in general is weak.