Crypto shooting game 'Shrapnel' developer Neon Machine exposed to financial crisis

According to Blockworks, the developer of the encrypted shooting game "Shrapnel", Neon Machine, is facing serious financial difficulties. As of now, the company has accumulated nearly $86.9 million in operating capital, with a revenue of $21.7 million in 2024. However, the high operating costs of approximately $33 million have prevented it from making a profit, resulting in a net loss of $11.4 million. According to sources, Neon Machine consumes up to $2 million to $3.5 million in funds per month and is currently in a state of cash depletion, with a large amount of outstanding debt and millions of dollars owed to external suppliers. The new round of financing for Neon Machine, originally scheduled to be completed in early 2025, has also failed to land. Previously, the company completed a $20 million Series A financing in October 2023, led by Polychain Capital. Moreover, the number of employees in the company has sharply decreased from nearly a hundred during the peak period to only a dozen or so, and currently only a very small number of people are truly involved in the development of 'Shrapnel'. To extend cash flow, the company has implemented at least three rounds of layoffs and requested high paying employees to voluntarily reduce their salaries by about 20%. The office located in Seattle was also closed at the end of March. Despite this, the company still claims to be "in the strongest state ever" and plans to globally launch "Shrapnel" by the end of 2025. However, several insiders close to Neon Machine are skeptical about whether the game can be successfully launched, stating that the project is not yet completed and funding has been exhausted. In addition, according to the People's Daily Online Gold News, Lingjing People's Game Laboratory held talks with the creative team of "Shrapnel" (Chinese temporary translation: danpian), and the two sides reached a preliminary cooperation intention on issues such as the casting and distribution, compliant circulation, and market operation of game digital assets in the Chinese market.