test content
What is the Arc Client?
Install Arc

If Cryptic Folds, What could happen to STO?

SystemSystem Member, NoReporting Posts: 178,019 Arc User
Pretty simple question really, or perhaps it's complex.

Can someone explain how these things usually work? Would the game still be the property of CBS licensed to Atari, or can CBS pass it off to the highest bidder?

Didn't Cryptic basically sell of City of Heroes to stay afloat. But that was their IP, not a licensed one, right?

Anyways, what could or is likely to happen if Cryptic folds?
Post edited by Unknown User on
«1

Comments

  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    I don't see Cryptic folding honestly. I can see Atari either spinning them off or them reverting back in some way.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    It's not about Cryptic folding. It's really about Atari folding. Atari would most likely sell the Cryptic assets to another company to raise needed cash. The new company (SOE, Turbine, whomever) would continue the game and put their own stamp upon it - of course all of that would need the blessing of CBS. If it folded without a sale the license probably has a void clause which would return the rights to CBS. CBS could then relicense the IP to someone else but they wouldn't get Crytpic's engine or whatever work they've put into it.

    Cryptic only owned 50% of CoH. They sold off the remainder of the company to NCSoft to fun CO and STO. It had nothing to do with staying afloat. If Cryptic kept it's share of CoH they would own 2 superhero games which compete against each other - not a good thing to do.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Kirkfat wrote: »
    Pretty simple question really, or perhaps it's complex.

    Can someone explain how these things usually work? Would the game still be the property of CBS licensed to Atari, or can CBS pass it off to the highest bidder?

    Didn't Cryptic basically sell of City of Heroes to stay afloat. But that was their IP, not a licensed one, right?

    Anyways, what could or is likely to happen if Cryptic folds?

    *on a side note, I want to personally wish some of the dedicated employees of Cryptic good luck with future endeavors.
    They turn off the lights, lock the doors, and shut down the servers. Marketing makes a press release. Usually these things happen rather slowly though. They still have a viable if diminishing revenue stream at this point.

    In short, if Cryptic fails, it's going to be because STO failed, and nobody is going to want to pick it back up. That's not to say another ST MMO couldn't be made in the future, like Star Wars Galaxies and Star Wars The Old Republic.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    AtomicFB wrote:
    I don't see Cryptic folding honestly. I can see Atari either spinning them off or them reverting back in some way.

    Is it possible that STO could switch hands, while Cryptic downsizes to focus on Champions? I'd say if they had the chance to pick one game in a moment of crisis, they'd go with Champions and let someone else deal with CBS.

    What other companies are in the Atari hierarchy?
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Cosmic_One wrote: »
    It's not about Cryptic folding. It's really about Atari folding. Atari would most likely sell the Cryptic assets to another company to raise needed cash. The new company (SOE, Turbine, whomever) would continue the game and put their own stamp upon it - of course all of that would need the blessing of CBS. If it folded without a sale the license probably has a void clause which would return the rights to CBS. CBS could then relicense the IP to someone else but they wouldn't get Crytpic's engine or whatever work they've put into it.

    Cryptic only owned 50% of CoH. They sold off the remainder of the company to NCSoft to fun CO and STO. It had nothing to do with staying afloat. If Cryptic kept it's share of CoH they would own 2 superhero games which compete against each other - not a good thing to do.

    Interesting. Thanks for the info. Anyone know how things are looking for Atari these days? Isn't there some big lawsuit right now?
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Kirkfat wrote: »
    Is it possible that STO could switch hands, while Cryptic downsizes to focus on Champions? I'd say if they had the chance to pick one game in a moment of crisis, they'd go with Champions and let someone else deal with CBS.

    It would be more likely if atari folded that Champions and STO would revert more fully into Cryptic's hands than any other option.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    wrote:
    Is it possible that STO could switch hands, while Cryptic downsizes to focus on Champions? I'd say if they had the chance to pick one game in a moment of crisis, they'd go with Champions and let someone else deal with CBS.

    What other companies are in the Atari hierarchy?
    Cryptic can sell the STO license to another company just as Perpetual sold it to them but, again, CBS would need to approve of the sale just as they did with Crytpic. And Crytpic would not be selling it's game engine to another company, though they might consider licensing it to the new company. Either way I don't see that happening, though. STO is Cryptic's cash-cow.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    If the company folds, that's it. The game will go bye-bye. If they just instead opt to pick a different game to focus on and don't sell the license, there's a good chance they'll keep the servers up as long as they're operational. There just won't be anymore patches or content, and when servers start to implode, they won't be replaced. If they do sell the license, we'll probably see a ton of Jedi running around as SOE runs STO into the ground.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    wrote:
    Interesting. Thanks for the info. Anyone know how things are looking for Atari these days? Isn't there some big lawsuit right now?
    Multi-million dollar lawsuits take years to get to resolution - the longer lawyers drag it out the more money they make. There's no way of knowing how long that might take or whether Atari will even lose.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Kirkfat wrote: »
    Is it possible that STO could switch hands, while Cryptic downsizes to focus on Champions? I'd say if they had the chance to pick one game in a moment of crisis, they'd go with Champions and let someone else deal with CBS.

    What other companies are in the Atari hierarchy?

    Turbine (Dungeons and Dragons Online)
    Obsidian (Neverwinter Nights)
    CCP (Eve)

    There's a ton of studios... Atari has games on all platforms too. The above are just MMOs.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    RCSlyman wrote: »
    If the company folds, that's it. The game will go bye-bye. If they just instead opt to pick a different game to focus on and don't sell the license, there's a good chance they'll keep the servers up as long as they're operational. There just won't be anymore patches or content, and when servers start to implode, they won't be replaced. If they do sell the license, we'll probably see a ton of Jedi running around as SOE runs STO into the ground.

    If SOE got a hold of it i would expect something like THIS. ( warning if you click that link you will be scared for life. any and all damages will be your own, I will not be held response able due to this warning. :D have a nice day )
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    That's one drink for a "This game is failing" thread!
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Zodi-emish wrote:
    If SOE got a hold of it i would expect something like THIS. ( warning if you click that link you will be scared for life. any and all damages will be your own, I will not be held response able due to this warning. :D have a nice day )

    Never read the TNG/X-Men crossover. The TOS/X-Men crossover wasn't bad though, imo.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Kirkfat wrote: »
    Pretty simple question really, or perhaps it's complex.

    Can someone explain how these things usually work? Would the game still be the property of CBS licensed to Atari, or can CBS pass it off to the highest bidder?

    Didn't Cryptic basically sell of City of Heroes to stay afloat. But that was their IP, not a licensed one, right?

    Anyways, what could or is likely to happen if Cryptic folds?

    Atari will run it.

    Like NCSoft runs CoH.

    And SOE runs Vanguard.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    RCSlyman wrote: »
    Never read the TNG/X-Men crossover. The TOS/X-Men crossover wasn't bad though, imo.

    You are not RCSlyman, nor human. no human can survive reading those. that means. YOUR AN UNDINE< GET HIM>
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Zodi-emish wrote:
    You are not RCSlyman, nor human. no human can survive reading those. that means. YOUR AN UNDINE< GET HIM>

    This is not the tripoped you are looking for... /handwave
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    RCSlyman wrote: »
    Never read the TNG/X-Men crossover. The TOS/X-Men crossover wasn't bad though, imo.

    Sounds better than when Scotty meet the Leperchaun, or something like that.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Since we're on the subject of hypothetical questions, if I could turn Coke to Pepsi... well, what the hell would I do with such a talent? Frak, I just wrote myself into a corner.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Obsidius wrote: »
    Since we're on the subject of hypothetical questions, if I could turn Coke to Pepsi... well, what the hell would I do with such a talent? Frak, I just wrote myself into a corner.

    You could prevent that picture of the dead Coke in the fridge surrounded by Pepsis, from ever happening.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    RCSlyman wrote: »
    This is not the tripoped you are looking for... /handwave

    Not True.
    *pulls out phaser rifle and aims*
    Now you better get down on the ground now, and shut up you dirty deano!
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    codepoet wrote: »
    Turbine (Dungeons and Dragons Online)
    Obsidian (Neverwinter Nights)
    CCP (Eve)

    There's a ton of studios... Atari has games on all platforms too. The above are just MMOs.
    I think Atari is only publishing for those companies...they don't own them outright like they do with Cryptic.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Cryptic can't fold. Thay are a department of Atari. Atari can fold ( and the shareholders have given them 2 years to make some pretty serious changes in shareholder debt/equity or they will dissolve the company. At that point all assets are liquidated to pay debts and what remains goes to the shareholders.
    The STO rights license is not a thing to be sold. It has been transferred in the past, before the game was made but in all honesty someone would have to buy the server farm, the staff contracts and the Assets belonging to Atari in Los Gatos needed to run the game, they would then have to go to CBS, renegotiate the royalties deal and get permission to use continue to produce under license.
    There is the small matter of Cryptic changing hands. That will trigger, in full, all of the bonus' negotiated with ex Cryptic shareholders at the time of the appropriation.
    That's a small figure of $47M which the shareholders would never agree to pay. It would be more profitable to them to sell the assets individually and wind up Cryptic and the staff. Cryptic as a whole concern are not worth $47M. The price is nearer $30M. Nobody will pay the going value for a liquidated concern.

    I think personally that Atari will go under in about 2 years. I don't think that it will have any bearing on STO as I believe that by that time it will be not making enough revenue for anyone at Atari to care about it

    It would be cheaper for another company who already has the staff and the servers to just go to CBS and negotiate another rights deal for another game if they thought there was any mileage in it after this.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    superchum wrote: »
    Atari will run it.

    Like NCSoft runs CoH.

    And SOE runs Vanguard.

    Atari already runs it.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010

    I think personally that Atari will go under in about 2 years. I don't think that it will have any bearing on STO as I believe that by that time it will be not making enough revenue for anyone at Atari to care about it

    It would be cheaper for another company who already has the staff and the servers to just go to CBS and negotiate another rights deal for another game if they thought there was any mileage in it after this.

    WHY SO NEGATIVE

    SMILE THERE IS MORE TO LIFE THEN A GAME. HERE LET THESE KIDS TEACH YOU
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Interesting:
    Cryptic, they stand to earn even more money [from Atari] through a performance-related bonus. How much? Try another USD 20 million in cash or stock, so long as the 2010-11 revenues of Champions Online and Star Trek Online outperform specific undisclosed targets. It would appear that Atari is expecting Cryptic's upcoming games to perform fairly well, and to launch fairly promptly

    link

    That is probably old news to some of you, but I do wonder if it's looking grim if the subs are bleeding too fast. I doubt that Cryptic will get this bonus unless there is some kind of turn-around.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Zodi-emish wrote:


    what's negative about what I said?
    It's merely a financial commentary based upon fact.

    Why so dismissive?
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Cryptic can't fold. Thay are a department of Atari. Atari can fold ( and the shareholders have given them 2 years to make some pretty serious changes in shareholder debt/equity or they will dissolve the company. At that point all assets are liquidated to pay debts and what remains goes to the shareholders.
    The STO rights license is not a thing to be sold. It has been transferred in the past, before the game was made but in all honesty someone would have to buy the server farm, the staff contracts and the Assets belonging to Atari in Los Gatos needed to run the game, they would then have to go to CBS, renegotiate the royalties deal and get permission to use continue to produce under license.
    There is the small matter of Cryptic changing hands. That will trigger, in full, all of the bonus' negotiated with ex Cryptic shareholders at the time of the appropriation.
    That's a small figure of $47M which the shareholders would never agree to pay. It would be more profitable to them to sell the assets individually and wind up Cryptic and the staff. Cryptic as a whole concern are not worth $47M. The price is nearer $30M. Nobody will pay the going value for a liquidated concern.

    I think personally that Atari will go under in about 2 years. I don't think that it will have any bearing on STO as I believe that by that time it will be not making enough revenue for anyone at Atari to care about it

    It would be cheaper for another company who already has the staff and the servers to just go to CBS and negotiate another rights deal for another game if they thought there was any mileage in it after this.

    Your knowledge is impressive, if accurate.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    what's negative about what I said?
    It's merely a financial commentary based upon fact.

    Why so dismissive?

    WHY SO ASSUMING. ( I guess for both of us.) and no I'm not dismissive, just trying to make people smile. I swear some of the people around here act like they will jump if the game fails.

    also did you watch the video?:D
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Kirkfat wrote: »
    ...Didn't Cryptic basically sell of City of Heroes to stay afloat...

    They didn't sell COH to stay afloat, they sold it to seperate from NCSoft.
  • Archived PostArchived Post Member Posts: 2,264,498 Arc User
    edited May 2010
    Atari already runs it.

    Right.

    Just like NCSoft ran COH.

    And Vanguard got picked up by SOE.

    If Cryptic gets moved out of Atari ... or folds ... or is abducted by space aliens ... the game will go on.
This discussion has been closed.