Bad times for Catalyst Games Lab

Ancient History · Post by **Ancient History** » Tue Mar 16, 2010 8:43 pm

OK, as you may well have been able to surmise from release schedules, Catalyst Game Labs is in a bit of a financial pickle, and it is somewhat unlikely that they will retain the license to make Shadowrun products. This is not because Shadowrun hasn't been selling enough to cover expenses, but merely because a significant quantity of money is missing outright. Reliable sources put this figure at roughly $850,000. Which sounds like a lot, and it is. It is roughly 40% of Catalyst's entire sales for last year, missing over a three year period. There will of course be lawsuits, and there are already people drawing up legal documents accusing Loren Coleman of having hired people to construct an extension on his house through the company as "freelance writers" and somehow reporting an estimated $100,000 of convention sales as $6,000. Whether that is actually true or not is - of course - a matter for the courts to decide. And decide they presumably will.

But what that means for Catalyst as a company is pretty bad. It costs several dollars to print a book even when the pdfs are finished and ready for publication. A print run of say, 50,000 books (like the print run of Runner Havens) would cost somewhere between $150,000 and $250,000 to print and ship to distributors. And while it eventually sold to distributors at ~$15 a book (a total take home of $750,000), it did so over a period of three years, during which time they were paying interest on loans and paying for storage, and advertisement and so on and so forth. A book like that isn't actually taking home half a million in profits. Which is a bad thing, because it means that even if there was a complete book printed and ready to sell, even a total and rapid sell through would not pull the company out of the financial hole it is in - and the shortfall means that it does not have the cash on hand to start the ball rolling with a new major printing.

The tiny amount of drachmas that are left in the coffers are being used to print up tiny print runs of books that have sold through - another 3,000 books of Runner's Companion for example (~$15,000 to start up, maybe $30-40k towards paying creditors if it sells out). There simply is not the startup cash to bring upcoming books like the SR4 sixth world almanac or corporate guide forward. The writing is there, but the printing costs are not. Beyond that, the freelancers have not been paid, and some of them are withholding copyright until they are - meaning that even a tiny print run of these new materials is simply not possible.

Many SR writers are quitting, have already quit, or have handed in notices contingent on demands which - word on the street - will not be met. And CGL does not even own Shadowrun, it leases the intellectual property from Topps. It seems unlikely that they will be able to make their licensing payment when the contract comes up for renewal - in a couple of months. At that time, CGL will cease being able to print Shadowrun or Battletech materials (they would presumably keep the license to Cthulhutech and Eclipse Phase for at least a little while longer, because those are separate contracts).

So what does this mean for the future of Shadowrun? It probably means that someone else will create a company and start making Shadowrun again. After all, freelancers work for very little, and a well selling book can bring in tens of thousands of dollars in profits. $850,000 of embezzlement is seemingly enough to sink the company (whoever ended up with the credsticks), but I must point out that there was indeed eight hundred and fifty thousand dollars to steal, so Shadowrun is not - as a concept - insoluble. And I also point out that something similar happened to Shadowrun before. Indeed, twice before, as both FanPro and FASA before it collapsed under the weight of people not paying debts and having bags with dollar bill signs vanish mysteriously in the middle of the night. It's somewhat... poetic considering the subject matter of the game itself.

It is entirely probable indeed that when a new company comes to take the licence, many familiar faces will appear in the new company as if they had never left. Certainly back when FanPro collapsed back when I was working for the company, I simply started working for the new company as if nothing had changed. This happened back when FASA collapsed as well - those members of the team that were not extracted by Microsoft simply started turning in writing assignments to the new boss.

And yeah, I regularly go on shadowruns against Catalyst to find out what new releases are in store. Don't you?

-Frank

DV8 · Post by **DV8** » Tue Mar 16, 2010 9:34 pm

Yeah, I read that and have a hard time forming any real opinion on it. It seems there was some shady business goings-on, but I'm sure that the SR license is lucrative enough for someone to try their hand at it. I haven't really been particularly fond of the direction Catalyst took the game and therefore I hope the next bunch are a bit more up my alley - though it's unlikely. I hope Adam's alright.

Ancient History · Post by **Ancient History** » Tue Mar 16, 2010 10:42 pm

Adam, being one of the best of us, has resigned.

3278 · Post by **3278** » Wed Mar 17, 2010 1:09 am

I should license the damned IP myself. I could make Ancient History call me, "sir" whenever we're in public. [Adam already does.]

Ancient History · Post by **Ancient History** » Wed Mar 17, 2010 1:19 am

Ah, 32. All you'd have to do is ask.

DV8 · Post by **DV8** » Wed Mar 17, 2010 8:52 am

32, would that mean we're heading back to the days of IEs and ED crossovers?

Jeff Hauze · Post by **Jeff Hauze** » Wed Mar 17, 2010 3:33 pm

3278 wrote:I should license the damned IP myself. I could make Ancient History call me, "sir" whenever we're in public. [Adam already does.]

I'm told they're selling it for only the cost of a bright yellow shirt with Chinese dragons.

3278 · Post by **3278** » Wed Mar 17, 2010 5:11 pm

DV8 wrote:32, would that mean we're heading back to the days of IEs and ED crossovers?

Someone mentioned that Redbrick should license the IP, as much for that reason as any other. For my own personal preference, a happy medium between "all crossover, all the time," and "we don't talk about that anymore" would be ideal.

DV8 · Post by **DV8** » Thu Mar 18, 2010 9:41 am

I think my displeasure over the crossover stuff comes from the fact that I never played ED. I read about it a little, but I didn't have the chance to fall in love with it like so many Bulldrekkers have.

Jeff Hauze · Post by **Jeff Hauze** » Thu Mar 18, 2010 4:18 pm

DV8 wrote:I think my displeasure over the crossover stuff comes from the fact that I never played ED. I read about it a little, but I didn't have the chance to fall in love with it like so many Bulldrekkers have.

I really feel in love with it. And I'm going to say something now that will probably get me crucified. But I actually started to fall out of love with it as well. There's a very small section of the crossover material that is solid, strong, and well-written. There's a whole fuckload of it that is pretty awful tripe that is seen through rose-colored glasses and rated far better than it actually was. Like a whole shitload of early FASA material, it gets a lot more credit than it deserves at times.

Ancient History · Post by **Ancient History** » Thu Mar 18, 2010 5:22 pm

I'll go with Jeff on this one. I loved the ED hints in the Tir Tairngire sourcebook; but I wasn't exactly thrilled with them in Harlequin and Harlequin's Back. By 3rd edition, you had Great Dragons popping into Shadowland conversations every goddamned book.

DV8 · Post by **DV8** » Thu Mar 18, 2010 6:03 pm

True, it felt like the mysticism was taken out of magic and the mystery out of the cross-over.

Jeff Hauze · Post by **Jeff Hauze** » Fri Mar 19, 2010 5:02 am

DV8 wrote:True, it felt like the mysticism was taken out of magic and the mystery out of the cross-over.

Yeah, which was the entire problem with magic in SR3. I'm always amazed when there are fans of magic and how it is handled in SR, who say they prefer the overly quantified and dissected version found in SR3. Magic in SR has always been my preferred comfort zone, it's where I operate best as a GM and as a player. But in SR3? Man...it was just freaking awful and mechanical.

That same sentiment applies to the crossovers, primarily in SR3 product. Once you could name the great dragons by their Shadowland handles, the charm wore off. Did anybody really find the shedim as frightening and shocking as they should have been? No, of course not. We had already seen the hell that was the invae. All the magical twists and turns in SR3 era storylines just felt fucking clunky. That's about when I fell out of love with the Fourth Succession War wank-fest in CBT and when I fell out love with the rose-colored view of the whole SR/ED mix in SR. It was long past time for Oscuro, the Horrors, and all of that to just disappear. This very problem was one of the key things that made the game feel so dated and out of touch for me. It's also probably a big part of why I have a very poor opinion of Rob Boyle and his involvement with SR. I don't even recall if he was line developer at the birth of SR3, but I know he was for the ending of it. As such, he gets associated with the whole thing for me.

Bonefish · Post by **Bonefish** » Fri Mar 19, 2010 5:13 am

Honestly, I'm not even sure I give a fuck about the future of ShadowRun. I like the idea of the advanced technology, the dystopia, the torn nature of shadowrun, but the game always failed me somewhere. Maybe it's because I was always a bit behind the curve on acquiring the newest books, so I didn't stay on top of a lot of things. But I've never given a fuck for the great dragons.

For me, shadowrun is still about breaking into shit, shooting people in the face and making money.

Adam · Post by **Adam** » Fri Mar 19, 2010 6:47 am

I am, for anyone wondering -- and for those of you that are, I very much appreciate that -- fine. I took a vacation, made my decision, and handed in my resignation on my first day back. The last four days have been barrages of phone calls, emails, IMs; with offers of work, condolences, respect, and business deals.

Is the situation fine? I won't speak to that. But I'm fine -- better than I expected to be, frankly -- and only getting better.

Bonefish · Post by **Bonefish** » Fri Mar 19, 2010 6:58 am

Adam, no one really cares about you.

How the fuck ya doin, man?

Adam · Post by **Adam** » Fri Mar 19, 2010 7:02 am

I'm fine. I see you still don't read very well! I had high hopes, too.

Jeff Hauze · Post by **Jeff Hauze** » Fri Mar 19, 2010 7:11 am

Adam wrote:I am, for anyone wondering -- and for those of you that are, I very much appreciate that -- fine. I took a vacation, made my decision, and handed in my resignation on my first day back. The last four days have been barrages of phone calls, emails, IMs; with offers of work, condolences, respect, and business deals.

Is the situation fine? I won't speak to that. But I'm fine -- better than I expected to be, frankly -- and only getting better.

Really glad to hear this. You'll be missed on those first pages of each book, sir.

Also, I think it's fair to say the situation isn't fine. Even CGL's press release made that clear. How bad it really is? Well, those involved know, and beyond that, it's not really my business.

Edit: Also, bonus? (In a badly timed, Jeffrey sense of humor way). More time for you to work with Posthuman on EP! Get me more product! Nowish!

Adam · Post by **Adam** » Fri Mar 19, 2010 7:21 am

Oh no. I agree with the bonus. Many things in relation to Eclipse Phase are being worked on.

DV8 · Post by **DV8** » Fri Mar 19, 2010 9:33 am

Adam: I was actually quite pleasantly surprised to see that you're co-founder of the company that developed Eclipse Phase. When I saw that I figured you'd be alright. That's quite an interesting and rather daring piece of creative gaming you're developing, by the way. I'm looking forward to seeing more of it at GenCon this year.

FlameBlade · Post by **FlameBlade** » Fri Mar 19, 2010 12:40 pm

once again, Adam shows why he's Adam fuckin' Jury.

Jeff Hauze · Post by **Jeff Hauze** » Fri Mar 19, 2010 1:42 pm

DV8 wrote:Adam: I was actually quite pleasantly surprised to see that you're co-founder of the company that developed Eclipse Phase. When I saw that I figured you'd be alright. That's quite an interesting and rather daring piece of creative gaming you're developing, by the way. I'm looking forward to seeing more of it at GenCon this year.

Wait...does that mean you're going?

DV8 · Post by **DV8** » Fri Mar 19, 2010 4:52 pm

Yes, it's looking that way. Are you?

Big Jim · Post by **Big Jim** » Fri Mar 19, 2010 5:38 pm

I like how you slipped that in, all subtle-like.

Jeff Hauze · Post by **Jeff Hauze** » Fri Mar 19, 2010 6:51 pm

DV8 wrote:Yes, it's looking that way. Are you?

Well shit. I wasn't planning on it. When I talked to the usual crowd this time around, most I knew weren't going. You're a bastard, Dutchie.

Big Jim · Post by **Big Jim** » Fri Mar 19, 2010 7:02 pm

If it matters at all, I am likely going as well, mostly because of him.

Serious Paul · Post by **Serious Paul** » Fri Mar 19, 2010 7:04 pm

Uncle Joseph and I are considering a one day jaunt to gen Con. We shall see.

Bonefish · Post by **Bonefish** » Fri Mar 19, 2010 7:44 pm

I and a Friend of mine might try to catch all of GenCon for the WM tourney, but shit, now I gotta go!

Adam · Post by **Adam** » Fri Mar 19, 2010 11:25 pm

On this day, I discovered that at my bank, CAD is worth more than USD.

Note to self: starting checking the exchange rate before going to the bank.

Jeff Hauze · Post by **Jeff Hauze** » Sat Mar 20, 2010 7:05 am

SR and Ctech products stop being sold by CGL?

Don't know what this means going forward, but it doesn't sound real good.

Ancient History · Post by **Ancient History** » Mon Mar 22, 2010 5:57 pm

For whoever cares, I'm no longer freelancing for CGL.

Kai · Post by **Kai** » Mon Mar 22, 2010 6:21 pm

Hope it all settles out alright for everyone.....glad you're doing fine already Adam

Hey Jeff? Come to Gencon. Haven't seen you in ages and I'll be there this year ;7

Jeff Hauze · Post by **Jeff Hauze** » Tue Mar 23, 2010 4:56 am

Goddamn you bastards all to hell.

DV8 · Post by **DV8** » Tue Mar 23, 2010 11:28 am

Is there nothing I can do to either change your mind or help you make it over?

Heavy_D · Post by **Heavy_D** » Tue Mar 23, 2010 12:31 pm

Does it help if I say that Dennis mk1 and Dennis mk2 will be present at Gencon this year?

Jeff Hauze · Post by **Jeff Hauze** » Tue Mar 23, 2010 3:41 pm

One, it's probably super late to go looking for rooms now (Don't housing choices start in like February or March?). Two, it's always a big expense for me to do GenCon, and I'm not sure if I want to really spend that money. It's vacation for me, so I have no desire to bunk sixteen people to a room to save money. I also have little desire to be located at some university dorm on the outskirts of the city. All that means fairly expensive lodging, especially since I tend to go early/stay late.

So, I'll look at, see what it costs, and decide soonish. I've got more motivation to go now, so that's a plus side. Of course, if I go, it won't really be for Drinkcon like it was the first year. The second time I went I spent a lot of time actually gaming/being a gamer, and that's something I'd like to repeat.

DV8 · Post by **DV8** » Tue Mar 23, 2010 5:09 pm

We're still looking for a room, too. Jim's on that, actually, so I'm sure we can work something out on that front.

Kai · Post by **Kai** » Tue Mar 23, 2010 5:10 pm

Yeah, this will be the first Gencon I'm going to not to work, just to play and catch up with friends old and new. I'm sure there will be hanging out and drinking, at least in the suite I'm in, but not drunk fest.

The Grand Crusader · Post by **The Grand Crusader** » Fri Mar 26, 2010 3:46 am

...you know, I've got a massive bank of paid vacation, and since Botcon is going to be even more hideously expensive, I've got a wad of cash. I haven't seen any of you guys since the Gathering in Wisconsin all those years ago, and I've always wanted to go to GenCon...

I think I'm gonna go this year, CGL issues or not. I'll see if I can drag LDH into it, too...

DV8 · Post by **DV8** » Fri Mar 26, 2010 1:29 pm

Nice!

Jeff Hauze · Post by **Jeff Hauze** » Sat Mar 27, 2010 3:59 pm

So far, Gencon is looking extremely "Not bloody likely" for me. Finding lodging that is acceptable and won't also cost me an entire paycheck is looking pretty unlikely.

The Grand Crusader · Post by **The Grand Crusader** » Sun Mar 28, 2010 6:43 am

As I need to wait until April 8th to buy my badge, what's the going rate for a hotel room for GenCon? I'm expecting something close to $300 or so...

DV8 · Post by **DV8** » Mon Mar 29, 2010 6:19 am

Jeff Hauze wrote:So far, Gencon is looking extremely "Not bloody likely" for me. Finding lodging that is acceptable and won't also cost me an entire paycheck is looking pretty unlikely.

Let's see what I can do about the lodging bit. I don't think Jim has taken a look for us yet either, so hold off on your final decision until we know more.

Jeff Hauze · Post by **Jeff Hauze** » Mon Mar 29, 2010 3:17 pm

DV8 wrote:Let's see what I can do about the lodging bit. I don't think Jim has taken a look for us yet either, so hold off on your final decision until we know more.

Trust me, you really don't want me rooming with you. Ask Maelwys.

DV8 · Post by **DV8** » Mon Mar 29, 2010 3:43 pm

I'm fairly sure I can take what you've got, but I'm not going to make you if you'd rather not want to, of course.

Jeff Hauze · Post by **Jeff Hauze** » Mon Mar 29, 2010 4:58 pm

DV8 wrote:I'm fairly sure I can take what you've got, but I'm not going to make you if you'd rather not want to, of course.

I believe Maelwys' formal description of my snoring was something along the lines of "it sounded like a corpse trying to gargle while drowning at maximum decibels." The people across the hall in the hotel agreed with him. As do my neighbors downstairs in my building. No, I'm not kidding.

Bonefish · Post by **Bonefish** » Mon Mar 29, 2010 6:49 pm

Looks like I'm bunking with jeff.

Kai · Post by **Kai** » Mon Mar 29, 2010 9:05 pm

Can't help with crash space myself, our suite's full up, but I'm good picking up the tab on a meal or two for you if you can get get yourself out there Jeff

Jeff Hauze · Post by **Jeff Hauze** » Tue Mar 30, 2010 6:35 am

Bonefish wrote:Looks like I'm bunking with jeff.

One of us will be dead after the first day. Or reality will implode. Maybe both.

I'm still looking about at lodging (and trying to avoid going through the GenCon block of rooms to do), but not having much luck so far. I'm on vacation this week, and not feeling very motivated to look at rooms right now.

Bonefish · Post by **Bonefish** » Tue Mar 30, 2010 7:05 pm

Yeah, but man, it could be fuckin' awesome!