The video explains that unlike Ashes of Creation, which failed due to inexperienced leadership and poor financial management, Star Citizen benefits from experienced developers, strong financial backing, and diversified projects like Squadron 42. It emphasizes that while no project is immune to failure, Star Citizen’s continuous progress, community support, and improved management make its success more likely.
The video begins by addressing the recent failure of the MMO crowdfunding project Ashes of Creation and the comparisons being drawn to Star Citizen. The creator, Loud Guns, clarifies that despite surface similarities—such as both projects being ambitious MMOs funded through crowdfunding—he does not believe Star Citizen is destined to fail like Ashes of Creation. He notes that Ashes was developed by a relatively inexperienced studio, Intrepid, led by Steven Sharief, who lacked the credentials and financial management expertise compared to Cloud Imperium Games (CIG), the developers behind Star Citizen.
A major reason for Ashes of Creation’s downfall was poor cash flow management. Despite initial Kickstarter success, Intrepid underestimated the true costs of development, leading to financial strain and ultimately the studio being sold to a private equity firm. In contrast, Star Citizen has consistently generated significant revenue, with funding reaching over $150 million in 2025. The presence of a playable game since 2015, continuous content updates, and a steady influx of backers contribute to Star Citizen’s stronger financial position and ongoing development.
Another key difference highlighted is the experience and leadership of the development teams. CIG’s team, led by Chris Roberts and other industry veterans like Richard Tyra, have a proven track record of shipping successful games, whereas Intrepid’s leadership lacked comparable experience. The video praises recent management improvements at CIG, including a more focused approach to the scope of Star Citizen’s 1.0 build and the introduction of a core storyline, indicating stronger project direction and control.
The video also touches on the diversification of risk through Squadron 42, a single-player game set in the Star Citizen universe. Unlike Ashes, which relied solely on its MMO, CIG has two distinct projects, broadening its market appeal and potential revenue streams. This diversification could attract different types of players and reduce the risk of financial collapse if one project underperforms.
Finally, Loud Guns discusses other reasons companies fail, such as fraud or producing a poor product, and asserts that neither applies to Star Citizen. He emphasizes the importance of community and player investment, which Star Citizen has cultivated over many years. While acknowledging that no company is immune to failure, he is optimistic about Star Citizen’s future, urging CIG to learn from Ashes of Creation’s mistakes and maintain steady progress without becoming complacent. The video ends with a call for viewers to support the channel and stay engaged with the ongoing journey of Star Citizen.