The video explores the sudden collapse of Ashes of Creation due to internal conflicts, financial opacity, and private equity intervention, highlighting the devastating impact on its community and developers. It then compares this to Star Citizen’s situation, noting key differences in financial stability and transparency, and urges caution and vigilance to avoid similar pitfalls.
The video discusses the recent collapse of Ashes of Creation, a crowdfunded MMO that had been in development for over a decade and drew parallels to Star Citizen, another ambitious crowdfunded MMO project. The founder and CEO of Intrepid Studios, Steven Sheriff, abruptly resigned due to disagreements with a newly formed board of directors, which subsequently led to mass layoffs and effectively ended the project. This sudden shutdown shocked both the developers and the community, especially coming shortly after the game’s unexpected early access release on Steam, which reportedly generated significant revenue. The involvement of a private equity firm and the board’s decision to drastically downsize and relocate development overseas appear to have been key factors in the implosion.
Financial transparency remains a major issue, as Intrepid Studios was not required to disclose detailed financial information, leaving many questions about the company’s true financial health unanswered. The timing of the layoffs, just days after Steam issued payouts from the early access sales, raised suspicions, but it was later revealed that those funds were frozen by Steam and are currently held by a bank to cover outstanding debts. This suggests the collapse was driven by financial pressures and legal complications rather than a simple cash grab. The video’s creator criticizes the decision to bring in private equity, arguing that Sheriff and the leadership might have avoided this fate had they been more transparent with backers about funding difficulties.
The human cost of Ashes of Creation’s downfall is emphasized, with thousands of backers losing hope and dozens of developers suddenly unemployed after years of hard work. Unlike a scam, Ashes had real progress and a passionate community, but the abrupt end left many devastated. The video highlights the importance of community in MMOs, noting that players often invest emotionally in the game world and its social aspects, making such collapses particularly painful. The creator expresses sympathy for both the developers and the community, underscoring the tragedy of a long-anticipated project ending so abruptly.
Turning to Star Citizen, the video examines whether a similar fate could befall the billion-dollar crowdfunded project. While there are surface similarities—massive ambition, long development, and a dedicated community—the financial and organizational realities differ significantly. Cloud Imperium Games, Star Citizen’s developer, has substantial private investment, legal financial disclosures, and a more stable financial footing. Although the project operates on thin profit margins, it appears to be managing expenses responsibly and has weathered funding challenges better than Ashes. However, the success of the upcoming Squadron 42 release will be critical to maintaining investor confidence and the project’s future viability.
In conclusion, the video urges caution rather than panic regarding Star Citizen’s future, recognizing that while collapse is possible, it is not inevitable. The Ashes of Creation debacle serves as a cautionary tale about the dangers of opaque funding, external control, and fractured communities. The creator encourages transparency, humility, and good decision-making to avoid repeating similar mistakes. Ultimately, the video invites viewers—especially those in the Star Citizen community—to reflect on the situation, learn from Ashes’ failure, and remain vigilant about the health of their own beloved project.