1 00:00:04,480 --> 00:00:12,120 Speaker 1: Text with Technology with tech Stuff from staff works dot com. 2 00:00:12,160 --> 00:00:15,240 Speaker 1: Hey there, and welcome to tech Stuff. I am your host, 3 00:00:15,480 --> 00:00:19,360 Speaker 1: Jonathan Strickland. I'm an executive producer here at how Stuff 4 00:00:19,480 --> 00:00:22,200 Speaker 1: Works and a lot of tech. So today we're gonna 5 00:00:22,280 --> 00:00:26,520 Speaker 1: focus on the Phantom, which was a proposed gaming console 6 00:00:27,160 --> 00:00:30,400 Speaker 1: that never made it much further than a prototype. So 7 00:00:31,160 --> 00:00:35,040 Speaker 1: this is kind of a part story about what you 8 00:00:35,080 --> 00:00:38,800 Speaker 1: could consider a tech failure. Some people go much further 9 00:00:38,920 --> 00:00:41,880 Speaker 1: than that. They call it the an example of an 10 00:00:42,000 --> 00:00:45,879 Speaker 1: entire scam or hoax, And I'll let you guys decide 11 00:00:45,880 --> 00:00:48,880 Speaker 1: for yourselves, but I'll say this, there's a lot of 12 00:00:49,159 --> 00:00:53,000 Speaker 1: at least evidence that seems to support that not everything 13 00:00:53,080 --> 00:00:57,960 Speaker 1: was on the up and up. But draw your own conclusions. So, uh, 14 00:00:58,760 --> 00:01:01,520 Speaker 1: the prototype, when it did happen, it was kind of 15 00:01:01,520 --> 00:01:06,560 Speaker 1: cobbled together from standard computer parts. So what was the Phantom, Well, 16 00:01:06,560 --> 00:01:09,320 Speaker 1: it is meant to be a next generation gaming rig 17 00:01:09,360 --> 00:01:12,480 Speaker 1: that would bring PC gaming to the living room back 18 00:01:12,520 --> 00:01:16,119 Speaker 1: in two thousand three, two thousand four, and it proposed 19 00:01:16,240 --> 00:01:20,399 Speaker 1: something fairly revolutionary in the process. Now, today, if you 20 00:01:20,440 --> 00:01:23,200 Speaker 1: were to unveil a gaming device that required you to 21 00:01:23,319 --> 00:01:27,400 Speaker 1: download all the titles to a hard drive, you probably 22 00:01:27,440 --> 00:01:31,520 Speaker 1: wouldn't raise that many eyebrows. It's not uncommon for a 23 00:01:31,600 --> 00:01:35,360 Speaker 1: gaming PC to lack an optical drive, after all, most 24 00:01:35,520 --> 00:01:38,240 Speaker 1: gaming rigs I've seen these days don't have an optical drive. 25 00:01:38,640 --> 00:01:41,440 Speaker 1: And digital delivery of games has been growing in popularity. 26 00:01:41,440 --> 00:01:44,800 Speaker 1: I mean, just take a look at steams numbers, They're incredible. 27 00:01:45,319 --> 00:01:48,280 Speaker 1: There's still a market for physical copies of a game, however, 28 00:01:48,520 --> 00:01:51,840 Speaker 1: particularly since you can potentially sell or trade in old 29 00:01:51,960 --> 00:01:55,400 Speaker 1: games if you use physical media. But overall, I'd say 30 00:01:55,400 --> 00:01:57,280 Speaker 1: the trend has been to move toward more of a 31 00:01:57,320 --> 00:02:01,400 Speaker 1: digital download experience. So if I said I was going 32 00:02:01,440 --> 00:02:04,360 Speaker 1: to launch a brand new console that could only stream 33 00:02:04,520 --> 00:02:08,320 Speaker 1: or download games, I probably wouldn't leave very many people 34 00:02:08,360 --> 00:02:11,720 Speaker 1: scratching their heads today. But the same was not true 35 00:02:11,760 --> 00:02:15,240 Speaker 1: back in January two thousand three. That's the year a 36 00:02:15,360 --> 00:02:19,200 Speaker 1: new company that was called Infinium Labs announced it was 37 00:02:19,320 --> 00:02:23,120 Speaker 1: bringing a gaming console called the Phantom to market. Now, 38 00:02:23,160 --> 00:02:26,360 Speaker 1: this was months before Steam would launch, let alone become 39 00:02:26,400 --> 00:02:30,160 Speaker 1: the dominant online market for computer games. In two thousand three, 40 00:02:30,160 --> 00:02:32,400 Speaker 1: it was pretty much common practice to go to game 41 00:02:32,480 --> 00:02:36,600 Speaker 1: stores or big box outlets to purchase computer titles. So 42 00:02:36,680 --> 00:02:40,160 Speaker 1: when Infinium Labs brazenly announced the company intended to turn 43 00:02:40,400 --> 00:02:43,360 Speaker 1: the home gaming market on its head. They got a 44 00:02:43,360 --> 00:02:46,720 Speaker 1: lot of attention. Now, ultimately the story would be followed 45 00:02:46,760 --> 00:02:52,280 Speaker 1: by controversy, anger, and finally mockery. And it includes allegations 46 00:02:52,280 --> 00:02:55,600 Speaker 1: of fraud or at the very least ineptitude. It involves 47 00:02:55,600 --> 00:02:58,160 Speaker 1: the company that changed its name and switched tracks to 48 00:02:58,200 --> 00:03:00,520 Speaker 1: create a totally different product than the one that was 49 00:03:00,560 --> 00:03:03,480 Speaker 1: promising to consumers. So we're really going to dive into 50 00:03:03,520 --> 00:03:07,480 Speaker 1: the story of the Phantom and what actually happened. Now, 51 00:03:07,520 --> 00:03:09,880 Speaker 1: our story begins. You guys know me, I like to 52 00:03:09,919 --> 00:03:13,840 Speaker 1: always dive further back than when the actual stuff happens. 53 00:03:14,120 --> 00:03:17,040 Speaker 1: Our story really begins almost a decade before any mention 54 00:03:17,160 --> 00:03:20,079 Speaker 1: of the Phantom ever hits the public. In the early 55 00:03:20,160 --> 00:03:24,240 Speaker 1: nineteen nineties in St. Louis, Missouri, They're a man named 56 00:03:24,360 --> 00:03:28,240 Speaker 1: Timothy Munroe Roberts was working at a computer store and 57 00:03:28,240 --> 00:03:31,320 Speaker 1: he had a customer named Andrew Gladney, and the two 58 00:03:31,360 --> 00:03:33,639 Speaker 1: of them began to talk about an idea for a business. 59 00:03:34,040 --> 00:03:37,000 Speaker 1: This was not the business that would become in Phinium Labs, however. 60 00:03:37,320 --> 00:03:39,920 Speaker 1: It was instead to create a data hosting service and 61 00:03:40,120 --> 00:03:43,880 Speaker 1: an early internet data hosting company. They called it the 62 00:03:43,960 --> 00:03:49,360 Speaker 1: Savaths Communications Corporation s A v v I. S now 63 00:03:49,360 --> 00:03:53,480 Speaker 1: Gladwell put up the majority of the starting capital. He 64 00:03:53,520 --> 00:03:57,040 Speaker 1: had a pretty healthy trust fund to draw from. It 65 00:03:57,120 --> 00:03:59,120 Speaker 1: was left to him by his grandfather, who has a 66 00:03:59,240 --> 00:04:01,560 Speaker 1: founder of a company that made a little soft drink 67 00:04:01,600 --> 00:04:05,720 Speaker 1: called seven Up. Together they got the business up and running, 68 00:04:06,600 --> 00:04:09,760 Speaker 1: and the company saw some early success with Robert's landing 69 00:04:09,760 --> 00:04:13,280 Speaker 1: a big deal with Apple Computer Incorporated. And landing Apple 70 00:04:13,440 --> 00:04:17,680 Speaker 1: meant Sabbaths had some serious market buzz behind it, and 71 00:04:17,720 --> 00:04:22,000 Speaker 1: they soon secured several other big contracts. Roberts, however, had 72 00:04:22,279 --> 00:04:24,280 Speaker 1: decided that he wanted to try and do something else, 73 00:04:24,279 --> 00:04:28,400 Speaker 1: so he left Sabbaths in n and went out to 74 00:04:28,440 --> 00:04:31,640 Speaker 1: start a new business. Now. This time, this was a 75 00:04:31,680 --> 00:04:35,560 Speaker 1: web hosting company called in tira I n t I 76 00:04:36,000 --> 00:04:39,120 Speaker 1: r A, also based out of St. Louis, Missouri. Some 77 00:04:39,279 --> 00:04:42,320 Speaker 1: of the concepts the company pushed were predictive of the 78 00:04:42,360 --> 00:04:45,520 Speaker 1: cloud computing craze that would follow a few years later, 79 00:04:46,200 --> 00:04:48,479 Speaker 1: but perhaps it was a touch too early for the company, 80 00:04:48,560 --> 00:04:51,080 Speaker 1: and coupled with the dot com bubble bursting in the 81 00:04:51,120 --> 00:04:55,240 Speaker 1: early two thousand's, it ended up not surviving, it filed 82 00:04:55,240 --> 00:04:59,800 Speaker 1: for bankruptcy protection in two thousand one. Oddly enough, Roberts 83 00:04:59,839 --> 00:05:03,239 Speaker 1: had already extricated himself from the company at that point, 84 00:05:03,360 --> 00:05:07,440 Speaker 1: selling off most of his stock, which in hindsight might 85 00:05:07,480 --> 00:05:09,159 Speaker 1: seem like it was a bit of a tip off. 86 00:05:10,040 --> 00:05:13,599 Speaker 1: Roberts had left in Tira around nt SO a couple 87 00:05:13,600 --> 00:05:16,040 Speaker 1: of years before the company went under, and he went 88 00:05:16,080 --> 00:05:21,080 Speaker 1: on to found another company, this time called Broadband Infrastructure 89 00:05:21,080 --> 00:05:25,400 Speaker 1: Group Corporation, also known as Big b a G. The 90 00:05:25,440 --> 00:05:28,160 Speaker 1: company's mission was to act as a sort of incubator 91 00:05:28,320 --> 00:05:33,080 Speaker 1: for tech companies and developed communications businesses, according to the St. 92 00:05:33,080 --> 00:05:35,719 Speaker 1: Louis Business Journals, So this is still happening in St. Louis, 93 00:05:35,720 --> 00:05:40,239 Speaker 1: Missouri now. According to the St. Louis Post Dispatch, Big 94 00:05:40,320 --> 00:05:44,479 Speaker 1: raised about eighteen million dollars from investors in two thousand 95 00:05:44,920 --> 00:05:48,520 Speaker 1: and it even sponsored a race car during the Indianapolis 96 00:05:48,560 --> 00:05:52,000 Speaker 1: five hundred that year. There are also stories of lavish parties, 97 00:05:52,120 --> 00:05:55,440 Speaker 1: expensive wines. In fact, part of the bankruptcy proceedings, because 98 00:05:55,440 --> 00:05:59,120 Speaker 1: spoiler alert, Big went out of business to part of 99 00:05:59,120 --> 00:06:01,960 Speaker 1: the bankruptcy proceeding has included the auction of twenty four 100 00:06:02,040 --> 00:06:06,160 Speaker 1: models of Chateau Lafitte Rothschild, which was a worth about 101 00:06:06,240 --> 00:06:12,440 Speaker 1: twenty four thousand dollars. Within nine months of raising those 102 00:06:12,520 --> 00:06:16,800 Speaker 1: millions of dollars, b I G closed. Now that led 103 00:06:16,839 --> 00:06:20,240 Speaker 1: to Roberts getting some heat in St. Louis See. I 104 00:06:20,480 --> 00:06:22,640 Speaker 1: changed it to Sant Louis for this part, and soon 105 00:06:22,680 --> 00:06:24,960 Speaker 1: he had folks at the state and federal and city 106 00:06:25,000 --> 00:06:28,640 Speaker 1: levels all asking some really tough questions about his entrepreneurial efforts, 107 00:06:28,920 --> 00:06:32,359 Speaker 1: and undaunted, he picked up stakes and he moved to Florida, 108 00:06:32,680 --> 00:06:37,000 Speaker 1: near Tampa. He started a new company called Infinium Labs, 109 00:06:37,480 --> 00:06:39,960 Speaker 1: and on January twenty, two thousand three, he started the 110 00:06:39,960 --> 00:06:41,560 Speaker 1: company two thousand two, by the way, but in two 111 00:06:41,560 --> 00:06:44,839 Speaker 1: thousand three, on January twenty, company issued a press release 112 00:06:44,839 --> 00:06:47,560 Speaker 1: about their plans. It's a short one, so I'm going 113 00:06:47,640 --> 00:06:51,719 Speaker 1: to actually read the press release. A Tampa Bay area 114 00:06:51,800 --> 00:06:55,480 Speaker 1: technology company in Phinium Labs Corporation, will develop and market 115 00:06:55,520 --> 00:06:58,800 Speaker 1: a new game console that will outperform the Xbox Sony 116 00:06:58,839 --> 00:07:02,640 Speaker 1: PlayStation two GameCube. The company plans to market a high 117 00:07:02,640 --> 00:07:06,400 Speaker 1: performance gaming console and delivery system to provide consumers with 118 00:07:06,440 --> 00:07:09,680 Speaker 1: options and capabilities that are not available in today's marketplace. 119 00:07:10,080 --> 00:07:12,720 Speaker 1: The console will appeal to the hardcore gamer and the 120 00:07:12,800 --> 00:07:16,960 Speaker 1: high end consumer electronic purchaser. The next generation game console 121 00:07:17,000 --> 00:07:21,360 Speaker 1: provides a robust, fault tolerant delivery system that supports games 122 00:07:21,360 --> 00:07:26,840 Speaker 1: on demand, game rentals, game demos, seamless upgrades, and patch management. 123 00:07:27,080 --> 00:07:31,040 Speaker 1: The game console is an always on broadband device. It 124 00:07:31,160 --> 00:07:33,800 Speaker 1: is easy enough for children to use independently, yet so 125 00:07:33,840 --> 00:07:37,640 Speaker 1: advanced it exceeds the needs of hardcore gamers. In Phinium 126 00:07:37,680 --> 00:07:40,760 Speaker 1: Labs was formed by veteran entrepreneurs who have a successful 127 00:07:40,800 --> 00:07:44,200 Speaker 1: track record in building large scale companies and advanced architectures 128 00:07:44,240 --> 00:07:49,200 Speaker 1: for supporting massive e commerce and enterprise applications. Combining skills 129 00:07:49,200 --> 00:07:54,480 Speaker 1: from telco data communications, digital rights management, software development, and security, 130 00:07:54,680 --> 00:07:58,040 Speaker 1: the management team brings together a unique array of skills 131 00:07:58,040 --> 00:08:01,240 Speaker 1: to develop the most robust next ration gaming console and 132 00:08:01,280 --> 00:08:05,440 Speaker 1: delivery network on the market. The Infinium Labs game console 133 00:08:05,480 --> 00:08:08,560 Speaker 1: features a high tech design and offers ease of use 134 00:08:08,680 --> 00:08:12,040 Speaker 1: for the variety of game players worldwide. The on demand 135 00:08:12,040 --> 00:08:14,680 Speaker 1: delivery system will appeal to hardcore gamers as well as 136 00:08:14,720 --> 00:08:18,480 Speaker 1: casual users. The unique design architecture allows for delivery of 137 00:08:18,520 --> 00:08:21,280 Speaker 1: a large number of games and the ability to participate 138 00:08:21,520 --> 00:08:27,200 Speaker 1: in online massive multiplayer gaming. Key features include fastest console 139 00:08:27,280 --> 00:08:32,520 Speaker 1: on the market, broadest selection of preloaded games, cross platform capabilities, 140 00:08:32,760 --> 00:08:36,120 Speaker 1: state of the art design and architecture, advanced accessories and 141 00:08:36,160 --> 00:08:41,160 Speaker 1: wireless capabilities, online connectivity for multiplayer gaming, seamless upgrades and 142 00:08:41,200 --> 00:08:45,000 Speaker 1: patch management. A multi tiered subscription service that meets the 143 00:08:45,040 --> 00:08:48,920 Speaker 1: needs of casual, moderate and hardcore game players, demo games 144 00:08:48,920 --> 00:08:53,000 Speaker 1: before purchasing or subscribing, games on demand, and game rentals. 145 00:08:53,240 --> 00:08:56,240 Speaker 1: The advanced system provides game developers and publishers a secure 146 00:08:56,280 --> 00:08:59,880 Speaker 1: and efficient software distribution system. In Phinium Labs intends for 147 00:09:00,000 --> 00:09:03,000 Speaker 1: game developers and publishers to reap greater profits using this 148 00:09:03,080 --> 00:09:06,240 Speaker 1: new game delivery system. And Phendium Labs has engineered its 149 00:09:06,240 --> 00:09:09,440 Speaker 1: prototypes and it expects to unveil the new gaming console 150 00:09:09,679 --> 00:09:12,599 Speaker 1: in March of two thousand three. The company intends to 151 00:09:12,679 --> 00:09:15,319 Speaker 1: launch the game console to the US consumer market by 152 00:09:15,320 --> 00:09:20,360 Speaker 1: November two thousand three. Remember that date. And Phenium Labs 153 00:09:20,360 --> 00:09:24,000 Speaker 1: has chosen Florida as its corporate headquarters. Florida has emerged 154 00:09:24,160 --> 00:09:26,880 Speaker 1: as a leader in support of technology companies with its 155 00:09:26,920 --> 00:09:30,920 Speaker 1: e Florida initiative. Offices will soon will open soon in 156 00:09:31,000 --> 00:09:35,120 Speaker 1: Silicon Valley and St. Louis, Missouri. About in Phenium Labs 157 00:09:35,280 --> 00:09:37,920 Speaker 1: and Phenium Labs Corporation was formed in October two thousand 158 00:09:37,920 --> 00:09:41,280 Speaker 1: two as a global entertainment gaming company and Phenium Labs 159 00:09:41,280 --> 00:09:43,760 Speaker 1: mission is to market a gaming console and delivery system 160 00:09:43,800 --> 00:09:45,679 Speaker 1: that will be the performance leader in the game playing 161 00:09:46,040 --> 00:09:49,040 Speaker 1: entertainment industry. The company will market a robust game console 162 00:09:49,080 --> 00:09:50,920 Speaker 1: that will appeal to a wide audience with its ease 163 00:09:50,960 --> 00:09:55,200 Speaker 1: of use, quality assurance, and robust delivery systems. Now, we 164 00:09:55,200 --> 00:09:58,760 Speaker 1: could probably say today that those promises we're a little 165 00:09:58,800 --> 00:10:01,960 Speaker 1: astounding for their time time and perhaps even a bit boastful. 166 00:10:02,120 --> 00:10:04,600 Speaker 1: I mean, you're talking about the fastest game console on 167 00:10:04,640 --> 00:10:08,320 Speaker 1: the market. Back in two thousand three, this was a 168 00:10:08,360 --> 00:10:13,120 Speaker 1: new company, untested in this space, setting out to challenge 169 00:10:13,559 --> 00:10:17,360 Speaker 1: entrenched companies like Sony and Nintendo. And then you had Microsoft, 170 00:10:17,480 --> 00:10:20,760 Speaker 1: which was relatively new to the video game console market 171 00:10:20,800 --> 00:10:23,640 Speaker 1: at this point but had already established itself as a 172 00:10:23,679 --> 00:10:27,160 Speaker 1: powerful presence in the industry. And the features the press 173 00:10:27,200 --> 00:10:30,720 Speaker 1: release listed were extremely innovative at the time. I'm sure 174 00:10:30,720 --> 00:10:32,840 Speaker 1: the gamers out there recognize that many of those features 175 00:10:32,840 --> 00:10:36,480 Speaker 1: are now standard on several consoles. For example, both on 176 00:10:36,520 --> 00:10:39,120 Speaker 1: the Xbox One and on the PS four you can 177 00:10:39,120 --> 00:10:41,920 Speaker 1: sample some games and even get some titles as part 178 00:10:41,920 --> 00:10:45,920 Speaker 1: of a monthly subscription service. So that kind of stuff 179 00:10:45,960 --> 00:10:49,120 Speaker 1: today isn't innovative, but at the time it was a 180 00:10:49,160 --> 00:10:53,240 Speaker 1: totally different way of doing business. So the promises being made, 181 00:10:53,760 --> 00:10:57,120 Speaker 1: while advanced, we're all features that would later on become 182 00:10:57,240 --> 00:11:00,160 Speaker 1: standard in video game consoles. It's just that in two 183 00:11:00,160 --> 00:11:03,240 Speaker 1: thousand three, this was a really wild idea, and it 184 00:11:03,360 --> 00:11:07,400 Speaker 1: raised questions was the world ready for an always on 185 00:11:07,600 --> 00:11:11,719 Speaker 1: internet connected console? Now? Judging by the resistance gamers put 186 00:11:11,800 --> 00:11:14,520 Speaker 1: up when Microsoft first said the Xbox One was going 187 00:11:14,559 --> 00:11:18,240 Speaker 1: to follow that same model and being always on broadcast service, 188 00:11:18,840 --> 00:11:20,480 Speaker 1: I think it's safe to say that if pack in 189 00:11:20,480 --> 00:11:23,040 Speaker 1: two thousand three, the world was not ready at that point, 190 00:11:23,120 --> 00:11:25,400 Speaker 1: because it wasn't ready when the Xbox One came out. 191 00:11:25,920 --> 00:11:30,400 Speaker 1: More importantly, was the technology ready or did the company 192 00:11:30,440 --> 00:11:33,240 Speaker 1: make promises that would have been impossible to deliver upon 193 00:11:33,480 --> 00:11:37,840 Speaker 1: even if it had been established as a big player 194 00:11:37,880 --> 00:11:40,720 Speaker 1: in the space up at that point. In other words, 195 00:11:41,000 --> 00:11:43,640 Speaker 1: if this had been Sony or Microsoft, would they have 196 00:11:43,720 --> 00:11:46,200 Speaker 1: been able to pull it off? Or was this just 197 00:11:46,640 --> 00:11:49,160 Speaker 1: a promise that no one at the time could deliver 198 00:11:49,280 --> 00:11:52,680 Speaker 1: upon we'll take a look at more details about the 199 00:11:52,760 --> 00:11:55,160 Speaker 1: unveiling of the Phantom and what happened in the wake 200 00:11:55,400 --> 00:11:58,120 Speaker 1: of that, but first let's take a quick break to 201 00:11:58,240 --> 00:12:07,120 Speaker 1: thank our sponsor. Now, before I get into all the 202 00:12:07,200 --> 00:12:09,679 Speaker 1: controversy that surrounds the Phantom, I thought it would be 203 00:12:09,679 --> 00:12:12,240 Speaker 1: a good idea to talk about what it was supposed 204 00:12:12,280 --> 00:12:15,560 Speaker 1: to have inside of it, what kind of connectors it 205 00:12:15,600 --> 00:12:17,079 Speaker 1: was supposed to have, you know, how it was going 206 00:12:17,120 --> 00:12:20,679 Speaker 1: to connect to your television, and talk a little bit 207 00:12:20,720 --> 00:12:25,199 Speaker 1: more about the subscription service and the online element to this, 208 00:12:25,600 --> 00:12:28,200 Speaker 1: to kind of get an idea of what exactly was 209 00:12:28,640 --> 00:12:33,400 Speaker 1: supposed to come out. Now, keep in mind that not 210 00:12:33,520 --> 00:12:37,720 Speaker 1: all of this ever materialized. Also, this is dependent upon 211 00:12:37,760 --> 00:12:40,840 Speaker 1: technology of the early two thousand's, even the TV technology 212 00:12:40,880 --> 00:12:43,040 Speaker 1: at the time. So there's some things that you would 213 00:12:43,040 --> 00:12:46,760 Speaker 1: have considered would have needed to be standard that we're 214 00:12:46,800 --> 00:12:49,280 Speaker 1: not included, like h d m I is not a 215 00:12:49,360 --> 00:12:54,320 Speaker 1: component on the Phantom spec list, and that's largely because 216 00:12:54,360 --> 00:12:56,840 Speaker 1: back in two thousand three not such a big thing. 217 00:12:57,240 --> 00:12:59,920 Speaker 1: But other things that you don't see as much anymore, 218 00:13:00,120 --> 00:13:03,600 Speaker 1: like composite or component video that definitely was part of it. 219 00:13:03,679 --> 00:13:07,320 Speaker 1: So for the standard components of the Phantom, because you 220 00:13:07,320 --> 00:13:10,800 Speaker 1: could also get optional components added on, or at least 221 00:13:10,800 --> 00:13:13,160 Speaker 1: in three you could. In reality you couldn't get anything. 222 00:13:14,000 --> 00:13:17,560 Speaker 1: The standard components were supposed to include a custom operating 223 00:13:17,600 --> 00:13:22,360 Speaker 1: system on a Windows XPE kernel, so that custom operating 224 00:13:22,400 --> 00:13:25,880 Speaker 1: system was to make it proprietary, kind of like the 225 00:13:25,920 --> 00:13:28,880 Speaker 1: operating systems you would encounter on other video game consoles, 226 00:13:29,400 --> 00:13:33,640 Speaker 1: and it would end up locking you into the Phantom's ecosystem. 227 00:13:33,920 --> 00:13:35,800 Speaker 1: It was supposed to have an a m d Athalon 228 00:13:36,000 --> 00:13:41,080 Speaker 1: XP plus central processing unit which would have approximately one 229 00:13:41,120 --> 00:13:45,319 Speaker 1: point eight giga hurts of CPU power, and it was 230 00:13:45,360 --> 00:13:49,120 Speaker 1: supposed to have an Nvidia g Force f x fred 231 00:13:49,240 --> 00:13:52,000 Speaker 1: Ultra graphics processing unit. Was also supposed to have an 232 00:13:52,040 --> 00:13:56,080 Speaker 1: Nvidia enforced to Ultra four hundred motherboard, two hundred fifty 233 00:13:56,080 --> 00:14:00,079 Speaker 1: six megabytes main memory, forty gigabyte hard drive. Don't be 234 00:14:00,200 --> 00:14:04,679 Speaker 1: digital five point one surround sound onboard, radio frequency wireless 235 00:14:04,720 --> 00:14:08,240 Speaker 1: modules that would allow you to connect things like UM 236 00:14:08,360 --> 00:14:12,600 Speaker 1: wireless mouse or wireless controllers or wireless keyboards to this 237 00:14:13,160 --> 00:14:16,520 Speaker 1: and S video r c A or component video connections 238 00:14:16,559 --> 00:14:21,040 Speaker 1: also composite, as it would turn out uh a Ethernet 239 00:14:21,160 --> 00:14:23,920 Speaker 1: port so that you could actually plug that into your 240 00:14:23,960 --> 00:14:26,120 Speaker 1: Internet connection. That was supposed to always be connected to 241 00:14:26,160 --> 00:14:29,080 Speaker 1: the Internet, so you need to have something a wireless controller, 242 00:14:29,080 --> 00:14:32,960 Speaker 1: a wireless keyboard and mouse, to USB ports, and four 243 00:14:33,160 --> 00:14:37,040 Speaker 1: controller ports. Then there were some optional components you could 244 00:14:37,080 --> 00:14:40,640 Speaker 1: add on to that, which would include extra controllers, either 245 00:14:40,760 --> 00:14:45,040 Speaker 1: wireless or accorded ones, a keyboard and mouse with charging, 246 00:14:45,080 --> 00:14:49,400 Speaker 1: base station storage expansion for additional game storage so you 247 00:14:49,400 --> 00:14:52,880 Speaker 1: could double the amount of storage space on there in theory, 248 00:14:53,400 --> 00:14:57,840 Speaker 1: a DSL modem, a cable modem, a wireless WiFi card, 249 00:14:58,240 --> 00:15:01,640 Speaker 1: memory upgrades, speaker set, and flat screen displays. So in 250 00:15:01,640 --> 00:15:04,480 Speaker 1: other words, you could go from something that you were 251 00:15:04,640 --> 00:15:06,680 Speaker 1: supposed to just hook up to your TV to something 252 00:15:06,680 --> 00:15:09,600 Speaker 1: that would have potentially multiple screens, although as far as 253 00:15:09,600 --> 00:15:13,040 Speaker 1: I can tell, they the graphics card wasn't necessarily set 254 00:15:13,120 --> 00:15:16,440 Speaker 1: up to support multiple displays, but that doesn't mean that 255 00:15:16,480 --> 00:15:20,200 Speaker 1: it couldn't happen. One thing the Phantom did not have 256 00:15:20,320 --> 00:15:23,040 Speaker 1: was any sort of portable storage drive, so there were 257 00:15:23,080 --> 00:15:27,160 Speaker 1: no CD drives, no DVD drives, no cartridges, no floppy disks, 258 00:15:27,400 --> 00:15:30,040 Speaker 1: nothing like that was ever supposed to go into the Phantom. 259 00:15:30,080 --> 00:15:33,640 Speaker 1: All material was meant to be downloaded or streamed directly 260 00:15:33,680 --> 00:15:36,120 Speaker 1: to the console. Now you may hear some of those 261 00:15:36,160 --> 00:15:38,280 Speaker 1: specs and say, well, that just sounds like it's a PC, 262 00:15:38,440 --> 00:15:40,480 Speaker 1: and really, when you get down to it, that's what 263 00:15:40,560 --> 00:15:43,880 Speaker 1: the phantom was. But then, to be fair, all video 264 00:15:43,920 --> 00:15:48,960 Speaker 1: game consoles ultimately end up becoming variations on the concept 265 00:15:49,000 --> 00:15:52,400 Speaker 1: of a personal computer. The big differences you've got some 266 00:15:52,520 --> 00:15:56,320 Speaker 1: changes in architecture. Something like the PlayStation four has an 267 00:15:56,440 --> 00:16:00,760 Speaker 1: architecture that's different than most PCs. Uh And with a console, 268 00:16:00,800 --> 00:16:03,720 Speaker 1: you typically are stuck with the hardware that the system 269 00:16:03,880 --> 00:16:06,960 Speaker 1: came with when it first launched or whenever you bought it. 270 00:16:07,240 --> 00:16:09,720 Speaker 1: So if I go out and buy an Xbox One today, 271 00:16:10,240 --> 00:16:12,960 Speaker 1: it's hard for me to upgrade that. I can probably 272 00:16:13,040 --> 00:16:16,720 Speaker 1: upgrade the storage by adding external storage, but I'm not 273 00:16:16,760 --> 00:16:19,680 Speaker 1: going to be able to upgrade the processor or graphics 274 00:16:19,680 --> 00:16:22,440 Speaker 1: cards or anything like that. With a PC, you can 275 00:16:22,440 --> 00:16:25,440 Speaker 1: actually upgrade components, at least until you bump up against 276 00:16:25,520 --> 00:16:29,320 Speaker 1: limitations like you've got stuff that's going to be too 277 00:16:29,320 --> 00:16:31,560 Speaker 1: big for the size of case that you have, or 278 00:16:32,240 --> 00:16:35,080 Speaker 1: the motherboard will no longer support it, something along those lines, 279 00:16:35,400 --> 00:16:38,800 Speaker 1: And technically you could keep on swapping out components. You're 280 00:16:38,840 --> 00:16:41,520 Speaker 1: essentially building a new computer at that point rather than 281 00:16:41,560 --> 00:16:46,040 Speaker 1: just upgrading. But it is a possibility, but consoles are different. 282 00:16:46,080 --> 00:16:48,200 Speaker 1: You pretty much have to wait for the next generation 283 00:16:48,400 --> 00:16:54,240 Speaker 1: to buy up and and increase your console's capabilities. The 284 00:16:54,280 --> 00:16:57,800 Speaker 1: Phantom was meant to play PC games, so that was 285 00:16:57,840 --> 00:16:59,880 Speaker 1: one concern a lot of people had early on was 286 00:17:00,120 --> 00:17:03,040 Speaker 1: if this in fact was to be a standalone video 287 00:17:03,080 --> 00:17:05,240 Speaker 1: gaming console for the living room that would allow you 288 00:17:05,240 --> 00:17:07,399 Speaker 1: to play PC games in the living room, something that 289 00:17:07,440 --> 00:17:09,080 Speaker 1: a lot of people have been trying to do, and 290 00:17:09,119 --> 00:17:11,720 Speaker 1: in fact today are still trying to do, like steam 291 00:17:11,760 --> 00:17:17,800 Speaker 1: boxes are essentially that same kind of approach. Uh. Even 292 00:17:17,800 --> 00:17:22,040 Speaker 1: though you know that was the mission statement, everyone was 293 00:17:22,080 --> 00:17:25,320 Speaker 1: pointing out, well, what happens when the games get too 294 00:17:25,320 --> 00:17:28,560 Speaker 1: advanced to run on the hardware of the Phantom. You 295 00:17:28,560 --> 00:17:31,000 Speaker 1: would have to upgrade somehow, and you could do some 296 00:17:31,119 --> 00:17:34,199 Speaker 1: upgrades through firmware, but that's not going to make the 297 00:17:34,240 --> 00:17:37,240 Speaker 1: process or work any faster necessarily, or make the graphics 298 00:17:37,240 --> 00:17:40,280 Speaker 1: card work harder. So that was a big concern was 299 00:17:40,320 --> 00:17:44,439 Speaker 1: that if in fact, this is essentially a customized personal 300 00:17:44,480 --> 00:17:48,320 Speaker 1: computer running some proprietary software on top of it then 301 00:17:48,359 --> 00:17:51,479 Speaker 1: what happens when the games get too advanced? Now, as 302 00:17:51,520 --> 00:17:54,000 Speaker 1: it turns out, there was never a need to answer 303 00:17:54,119 --> 00:17:56,240 Speaker 1: that question, but it was one of the early ones. 304 00:17:57,160 --> 00:17:59,800 Speaker 1: And as I mentioned earlier in this episode, the console 305 00:18:00,040 --> 00:18:02,080 Speaker 1: or hit the market, so some people would refer to 306 00:18:02,119 --> 00:18:06,399 Speaker 1: it as vapor ware, but all the components existed. The 307 00:18:06,440 --> 00:18:08,920 Speaker 1: stuff that they talked about really did exist. I mean, 308 00:18:08,960 --> 00:18:11,600 Speaker 1: all of those different elements you could go out there 309 00:18:11,600 --> 00:18:15,080 Speaker 1: and buy, so there was never a problem with that. 310 00:18:15,119 --> 00:18:17,639 Speaker 1: There's just there was no consumer product that featured all 311 00:18:17,680 --> 00:18:20,560 Speaker 1: of those in that configuration as a phantom console. There 312 00:18:20,560 --> 00:18:23,600 Speaker 1: are a couple of prototypes or show models that Infinium 313 00:18:23,640 --> 00:18:26,040 Speaker 1: Labs would trot out at various events like c E 314 00:18:26,320 --> 00:18:29,159 Speaker 1: S or E three, and there's some debate in online 315 00:18:29,160 --> 00:18:32,000 Speaker 1: circles as to whether those prototypes represented a real effort 316 00:18:32,000 --> 00:18:34,640 Speaker 1: to create a phantom console or if they were in 317 00:18:34,680 --> 00:18:36,560 Speaker 1: fact just a run of the mill PC inside a 318 00:18:36,560 --> 00:18:40,320 Speaker 1: customized case. In some cases, it wasn't even that. According 319 00:18:40,359 --> 00:18:43,480 Speaker 1: to one story I was reading, a games journalist went 320 00:18:43,560 --> 00:18:47,000 Speaker 1: to E three and saw a demonstration of the phantom 321 00:18:47,080 --> 00:18:52,560 Speaker 1: console and it sat down next to uh representative from 322 00:18:52,600 --> 00:18:55,640 Speaker 1: Infinium Labs who was going to give a demo of 323 00:18:55,760 --> 00:18:59,119 Speaker 1: the whole thing, and they had the console sitting in 324 00:18:59,200 --> 00:19:01,440 Speaker 1: front of them. They tried to launch a game and 325 00:19:01,600 --> 00:19:04,160 Speaker 1: it didn't work out properly, And as it turned out, 326 00:19:04,880 --> 00:19:10,480 Speaker 1: the representative actually revealed to the games journalist that the 327 00:19:10,520 --> 00:19:14,200 Speaker 1: game itself was being run on a PC behind the cabinet, 328 00:19:14,920 --> 00:19:18,359 Speaker 1: that the console that was on display was in fact 329 00:19:18,359 --> 00:19:20,760 Speaker 1: a dummy console. It didn't do anything. It just had 330 00:19:20,800 --> 00:19:25,200 Speaker 1: some lit up letters that spelled out Phantom, but there 331 00:19:25,280 --> 00:19:28,239 Speaker 1: was nothing going on inside of it. Now that's not 332 00:19:28,320 --> 00:19:33,119 Speaker 1: to say that every single instance was a fake console 333 00:19:33,359 --> 00:19:37,080 Speaker 1: with a real PC behind the curtain, Wizard of Oz style, 334 00:19:37,480 --> 00:19:39,919 Speaker 1: but at least according to that one report, that was 335 00:19:40,000 --> 00:19:43,040 Speaker 1: the case. Now, as it turns out, years after the 336 00:19:43,040 --> 00:19:46,880 Speaker 1: Phantom controversy had kind of fizzled out, Ours Technica would 337 00:19:46,960 --> 00:19:50,840 Speaker 1: run a piece about a reader named Eddie Schlessinger who 338 00:19:50,880 --> 00:19:54,840 Speaker 1: worked at a computer repair shop in Venice, Florida. Now remember, 339 00:19:55,560 --> 00:19:59,639 Speaker 1: Infinium Labs was originally located off Florida and around to 340 00:19:59,800 --> 00:20:03,600 Speaker 1: the and twelve. A customer brought in this weird PC console. 341 00:20:03,760 --> 00:20:08,320 Speaker 1: It was branded a Phantom, So apparently this customer had 342 00:20:08,359 --> 00:20:10,840 Speaker 1: bought the set from someone else who had no idea 343 00:20:10,880 --> 00:20:13,440 Speaker 1: what the heck this thing was. For the princely sum 344 00:20:13,600 --> 00:20:16,560 Speaker 1: of two hundred dollars. Now, considering that it may be 345 00:20:16,760 --> 00:20:19,199 Speaker 1: one of a kind, or at least maybe one of 346 00:20:19,240 --> 00:20:22,639 Speaker 1: a dozen or so, that's not bad. Schlessenger had a 347 00:20:22,680 --> 00:20:25,200 Speaker 1: chance to crack it open and look under the hood 348 00:20:25,200 --> 00:20:29,159 Speaker 1: and see what was there. Now, Remember Schlessenger was telling 349 00:20:29,160 --> 00:20:31,400 Speaker 1: Ours Technica about this a few years later, I think 350 00:20:31,400 --> 00:20:35,240 Speaker 1: it was so about three years had passed so, according 351 00:20:35,280 --> 00:20:41,120 Speaker 1: to Schlessenger. Inside the prototype was a motherboard supposedly made 352 00:20:41,119 --> 00:20:46,480 Speaker 1: by a sus That's what Schlessenger thought, had the Nvidia 353 00:20:46,840 --> 00:20:50,280 Speaker 1: fx F a g P video card that had been announced. 354 00:20:50,400 --> 00:20:52,879 Speaker 1: It had some d DR ram um. Some of the 355 00:20:52,920 --> 00:20:55,199 Speaker 1: ports on the back we're working, and others were just 356 00:20:55,320 --> 00:20:58,800 Speaker 1: for show. It had video outputs for composite component and 357 00:20:59,000 --> 00:21:02,080 Speaker 1: S video connector, which again these days we would probably 358 00:21:02,119 --> 00:21:05,240 Speaker 1: just use hd M I instead. It also had audio 359 00:21:05,240 --> 00:21:08,600 Speaker 1: output jacks for optical co acts or our c A connectors, 360 00:21:09,040 --> 00:21:12,639 Speaker 1: and there were four USB ports. The system was not 361 00:21:12,760 --> 00:21:16,520 Speaker 1: in working order, so he ended up making some modifications 362 00:21:16,520 --> 00:21:19,520 Speaker 1: to it, and he even installed a phantom promo video. 363 00:21:19,600 --> 00:21:22,960 Speaker 1: He took a video that had been circulated on the 364 00:21:23,000 --> 00:21:25,720 Speaker 1: internet for a while, and he used that as sort 365 00:21:25,720 --> 00:21:28,240 Speaker 1: of the load up screen for the console, so that 366 00:21:28,680 --> 00:21:32,880 Speaker 1: the customer could say that he owned a working Phantom console. Now, 367 00:21:32,880 --> 00:21:34,720 Speaker 1: it sounds like a lot of the stuff and Phinium 368 00:21:34,800 --> 00:21:37,880 Speaker 1: was claiming the Phantom would include found its way into 369 00:21:37,920 --> 00:21:41,760 Speaker 1: that prototype, which is something. At least not all those 370 00:21:41,840 --> 00:21:44,040 Speaker 1: ports were working. But then if the company wanted to 371 00:21:44,080 --> 00:21:46,160 Speaker 1: create a proof of concept to kind of show how 372 00:21:46,160 --> 00:21:49,240 Speaker 1: the system would work, it might only focus on the 373 00:21:49,280 --> 00:21:52,159 Speaker 1: necessary components to get it to perform as needed for 374 00:21:52,200 --> 00:21:54,960 Speaker 1: a demo. So, in other words, if you're shopping it 375 00:21:55,000 --> 00:21:57,720 Speaker 1: around trying to get some investors to give you money, 376 00:21:57,920 --> 00:21:59,560 Speaker 1: you might have a mock up where it's not a 377 00:21:59,600 --> 00:22:03,760 Speaker 1: fully functional unit, but you want to show off the 378 00:22:03,840 --> 00:22:06,399 Speaker 1: concept so that you can get the funding to complete it. 379 00:22:06,480 --> 00:22:11,400 Speaker 1: That doesn't necessarily mean that the company is shady or 380 00:22:11,440 --> 00:22:15,399 Speaker 1: suspicious in any way. Presumably the finished product would have 381 00:22:15,480 --> 00:22:18,280 Speaker 1: included all of the working components that were being talked 382 00:22:18,280 --> 00:22:20,800 Speaker 1: about in their press releases. Now that would also mean 383 00:22:20,840 --> 00:22:23,600 Speaker 1: customers would get a keyboard and mouse in what Infinium 384 00:22:23,640 --> 00:22:26,679 Speaker 1: Labs was calling a lap pad, And this was an 385 00:22:26,720 --> 00:22:29,440 Speaker 1: attempt to make it easier to play PC style games 386 00:22:29,480 --> 00:22:32,880 Speaker 1: on a home television in your living room. Many PC 387 00:22:33,080 --> 00:22:36,239 Speaker 1: games are compatible with game controllers, but some games, like 388 00:22:36,359 --> 00:22:39,600 Speaker 1: first person shooters or real time strategy games tend to 389 00:22:39,600 --> 00:22:43,040 Speaker 1: work best using a mouse and keyboard approach. If you 390 00:22:43,160 --> 00:22:45,919 Speaker 1: use a controller and you go up against someone else 391 00:22:45,960 --> 00:22:48,560 Speaker 1: who's using mouse and keyboard, you will probably find your 392 00:22:48,600 --> 00:22:52,280 Speaker 1: petuity handed to you. So what about the online service 393 00:22:52,359 --> 00:22:55,960 Speaker 1: part of this whole package? Will Athenium Labs plan to 394 00:22:56,040 --> 00:23:00,679 Speaker 1: operate a Virtual Private Games Network or vpg in And 395 00:23:00,760 --> 00:23:04,440 Speaker 1: this is a special type of virtual private network or VPN. 396 00:23:04,840 --> 00:23:06,959 Speaker 1: And you may have used VPNs for work or for 397 00:23:07,000 --> 00:23:09,959 Speaker 1: your own computers. For those of you who are unfamiliar 398 00:23:10,000 --> 00:23:12,160 Speaker 1: with the idea, let me give you a real quick, 399 00:23:12,800 --> 00:23:17,080 Speaker 1: high level rundown. So a VPN creates a private network 400 00:23:17,359 --> 00:23:21,440 Speaker 1: across a public network. So take the Internet for example. 401 00:23:21,800 --> 00:23:24,320 Speaker 1: That's a public network anyone can hop on or off 402 00:23:24,359 --> 00:23:28,479 Speaker 1: at any time. Private networks require access to machines on 403 00:23:28,520 --> 00:23:32,080 Speaker 1: the network itself, so like a physical private network is 404 00:23:32,119 --> 00:23:35,200 Speaker 1: completely separate from any other network, or it only has 405 00:23:35,280 --> 00:23:38,960 Speaker 1: very controlled portals to other networks. And the only way 406 00:23:38,960 --> 00:23:41,320 Speaker 1: you can get on that physical network is if you 407 00:23:41,320 --> 00:23:44,680 Speaker 1: have access to a machine that's connected to it. Um 408 00:23:44,720 --> 00:23:48,520 Speaker 1: A VPN simulates that it's not a true private network, 409 00:23:48,600 --> 00:23:53,120 Speaker 1: but through code, creates a situation that is essentially like that, 410 00:23:53,600 --> 00:23:57,280 Speaker 1: and it can send that communication across a larger public network. 411 00:23:58,240 --> 00:24:01,679 Speaker 1: This means communication across the ep N is encrypted to 412 00:24:01,720 --> 00:24:04,840 Speaker 1: protect data from snoopers. Otherwise you might as well just 413 00:24:04,960 --> 00:24:08,480 Speaker 1: use a public network in the first place. It's typically 414 00:24:08,560 --> 00:24:12,240 Speaker 1: used by businesses to allow remote employees access to company 415 00:24:12,320 --> 00:24:16,200 Speaker 1: intranet systems. Other folks might use a VPN to communicate 416 00:24:16,240 --> 00:24:20,200 Speaker 1: securely with other people or to access services that might 417 00:24:20,240 --> 00:24:23,280 Speaker 1: otherwise be blocked in their real physical location. So you 418 00:24:23,359 --> 00:24:26,240 Speaker 1: might log into a VPN and use that in order 419 00:24:26,280 --> 00:24:29,760 Speaker 1: to access something that otherwise you would not be able 420 00:24:29,800 --> 00:24:33,239 Speaker 1: to touch from wherever you are. It's really handy if 421 00:24:33,240 --> 00:24:34,679 Speaker 1: you happen to be in a country that has a, 422 00:24:35,160 --> 00:24:39,040 Speaker 1: you know, a more nanny state kind of approach to 423 00:24:39,480 --> 00:24:42,720 Speaker 1: guiding how the Internet should be used by the population. 424 00:24:43,920 --> 00:24:47,800 Speaker 1: So why would Infinium Labs want to operate a vpg N. Well, 425 00:24:47,920 --> 00:24:51,159 Speaker 1: mostly it's to lock a customer into an ecosystem. And 426 00:24:51,200 --> 00:24:53,479 Speaker 1: here's how the business plan would have worked if it 427 00:24:53,480 --> 00:24:57,240 Speaker 1: had ever launched, you decide you're gonna go out and 428 00:24:57,320 --> 00:24:59,520 Speaker 1: buy a Phantom console. Actually, you can have a couple 429 00:24:59,560 --> 00:25:03,919 Speaker 1: of different options. You could purchase one for ad dollars 430 00:25:04,080 --> 00:25:08,200 Speaker 1: at least that was one of the amounts quoted, which 431 00:25:08,240 --> 00:25:12,119 Speaker 1: is actually incredibly cheap. Or you could rent it. Or 432 00:25:12,280 --> 00:25:15,000 Speaker 1: you could sign up for a two year subscription agreement 433 00:25:15,640 --> 00:25:19,399 Speaker 1: with Infinium Labs on their Virtual Private Games Network, and 434 00:25:19,400 --> 00:25:21,320 Speaker 1: if you subscribe for two years, you would get the 435 00:25:21,359 --> 00:25:26,240 Speaker 1: hardware for free. So the subscription would cost twenty nine 436 00:25:25,560 --> 00:25:29,440 Speaker 1: dollars a month, and for that you would be able 437 00:25:29,480 --> 00:25:32,920 Speaker 1: to use the Phantom Network to download games, uh to 438 00:25:33,119 --> 00:25:36,560 Speaker 1: stream games, to play games online with other people. You 439 00:25:36,600 --> 00:25:39,200 Speaker 1: would have access to a suite of games right away 440 00:25:39,240 --> 00:25:41,600 Speaker 1: that would be included with your subscription fee, so you 441 00:25:41,600 --> 00:25:45,080 Speaker 1: wouldn't have to pay any extra for a certain library 442 00:25:45,200 --> 00:25:48,439 Speaker 1: of games. If you wanted games that were beyond that 443 00:25:48,520 --> 00:25:51,760 Speaker 1: library and Infinium Labs had secured the rights, you would 444 00:25:51,760 --> 00:25:54,480 Speaker 1: be able to download demo versions of those for free, 445 00:25:54,680 --> 00:25:56,520 Speaker 1: and if you wanted to purchase it, you could do 446 00:25:56,600 --> 00:26:00,240 Speaker 1: so through infinium labs as online store and down the 447 00:26:00,240 --> 00:26:03,080 Speaker 1: game directly to the console. The console would keep track 448 00:26:03,119 --> 00:26:05,440 Speaker 1: of how much storage space was left, and it could 449 00:26:05,440 --> 00:26:08,960 Speaker 1: even dynamically manage it. So if you start getting close 450 00:26:09,000 --> 00:26:11,440 Speaker 1: to your limit, Remember you've got that forty gigabyte limit. 451 00:26:11,680 --> 00:26:13,880 Speaker 1: Let's say you start getting close to that. These days, 452 00:26:13,920 --> 00:26:16,200 Speaker 1: it wouldn't take long at all because games are so huge. 453 00:26:16,400 --> 00:26:19,720 Speaker 1: But let's talk about two thousand two four, you start 454 00:26:19,760 --> 00:26:23,320 Speaker 1: getting close to that forty gigabyte limit, Well, the phantom 455 00:26:23,520 --> 00:26:26,320 Speaker 1: would end up deleting older games that you had not 456 00:26:26,520 --> 00:26:29,560 Speaker 1: played in a long time, but the service would keep 457 00:26:29,560 --> 00:26:32,040 Speaker 1: track of which games you had purchased, so if you 458 00:26:32,080 --> 00:26:33,959 Speaker 1: ever decided you wanted to go back and play an 459 00:26:34,000 --> 00:26:37,399 Speaker 1: old title, then you could download it again for free 460 00:26:37,440 --> 00:26:40,679 Speaker 1: because you had already purchased it previously, so there'd be 461 00:26:40,680 --> 00:26:42,600 Speaker 1: a record of the fact that you had bought it before, 462 00:26:42,600 --> 00:26:45,160 Speaker 1: and you wouldn't have to buy it a second time. Now, 463 00:26:45,160 --> 00:26:48,639 Speaker 1: in many ways, this is how subscription services like Xbox 464 00:26:48,680 --> 00:26:53,919 Speaker 1: Gold memberships work today. The business plan sounded actually pretty solid. 465 00:26:53,960 --> 00:26:57,280 Speaker 1: It was very innovative for its time. There'd be incentive 466 00:26:57,359 --> 00:27:00,320 Speaker 1: for gamers to subscribe month after month because they could 467 00:27:00,320 --> 00:27:03,960 Speaker 1: get access to the games within the library, as well 468 00:27:04,000 --> 00:27:08,480 Speaker 1: as a chance to buy other brand new games, possibly 469 00:27:08,560 --> 00:27:11,800 Speaker 1: at a discount because you're not buying them the physical media, 470 00:27:12,000 --> 00:27:15,119 Speaker 1: although now we know that doesn't always work out that way. 471 00:27:15,359 --> 00:27:17,919 Speaker 1: You don't always get a discount just because you're not buying, 472 00:27:18,520 --> 00:27:21,280 Speaker 1: you know, a disk. It can be just as expensive 473 00:27:21,359 --> 00:27:23,840 Speaker 1: or sometimes more expensive, to buy the digital version, which 474 00:27:23,880 --> 00:27:26,480 Speaker 1: is infuriating for a lot of people. There were also 475 00:27:26,560 --> 00:27:29,960 Speaker 1: hints that game titles could come out a little earlier, 476 00:27:30,000 --> 00:27:33,160 Speaker 1: so you could get them much quicker than you would 477 00:27:33,240 --> 00:27:34,639 Speaker 1: if you were to have to go to the store. 478 00:27:34,680 --> 00:27:37,840 Speaker 1: There was no danger of them selling out. You didn't 479 00:27:37,840 --> 00:27:40,919 Speaker 1: have to worry about pre registering for a game and 480 00:27:40,960 --> 00:27:44,400 Speaker 1: hoping that the the local game stop or whatever game 481 00:27:44,480 --> 00:27:47,080 Speaker 1: store you would go to would have enough copies on 482 00:27:47,240 --> 00:27:50,800 Speaker 1: launch day. You could just download it. So there were definitely, 483 00:27:50,840 --> 00:27:53,920 Speaker 1: you know, reasons that a gamer might be interested in this, 484 00:27:54,240 --> 00:27:57,480 Speaker 1: Although the thought of having to pay an ongoing subscription 485 00:27:57,520 --> 00:27:59,720 Speaker 1: service to keep using a video game console that you 486 00:27:59,760 --> 00:28:02,640 Speaker 1: would already purchased rubbed a lot of people the wrong way. 487 00:28:02,680 --> 00:28:07,280 Speaker 1: It was an idea that maybe wasn't quite ready yet. 488 00:28:08,760 --> 00:28:12,560 Speaker 1: So on the business side it sounded fantastic because you 489 00:28:12,560 --> 00:28:15,640 Speaker 1: would have a company that would have an incoming, steady 490 00:28:15,680 --> 00:28:19,680 Speaker 1: flow of revenue because it's not just selling a console 491 00:28:19,880 --> 00:28:22,800 Speaker 1: once to a customer. It's selling a console and then 492 00:28:22,840 --> 00:28:27,120 Speaker 1: offering a subscription service and then getting a monthly subscription 493 00:28:27,160 --> 00:28:30,880 Speaker 1: fee from that customer, and then you put that across 494 00:28:30,920 --> 00:28:35,040 Speaker 1: thousands of customers. That's an incredible revenue stream and it's 495 00:28:35,080 --> 00:28:38,440 Speaker 1: obviously one that works for a lot of game developers 496 00:28:38,480 --> 00:28:41,840 Speaker 1: today and game consoles today. But at the time, again 497 00:28:42,040 --> 00:28:46,920 Speaker 1: it was a pretty uh radical idea. Now, on top 498 00:28:46,960 --> 00:28:50,840 Speaker 1: of that, using a proprietary approach for games distribution solved 499 00:28:50,880 --> 00:28:54,200 Speaker 1: another problem the company would otherwise encounter. So this is 500 00:28:54,240 --> 00:28:58,360 Speaker 1: another reason for that virtual Private Games network. The Phantom was, 501 00:28:58,480 --> 00:29:02,040 Speaker 1: as I said, essentially a PC connected to a television, 502 00:29:02,440 --> 00:29:07,040 Speaker 1: So without any sort of proprietary overlay, nothing would necessarily 503 00:29:07,040 --> 00:29:11,200 Speaker 1: stop gamers from downloading games from other sources outside of 504 00:29:11,200 --> 00:29:13,640 Speaker 1: Infinium Labs. If you could just log into the Internet 505 00:29:13,640 --> 00:29:16,719 Speaker 1: and maybe go into a Torrent site, if you had 506 00:29:16,760 --> 00:29:19,800 Speaker 1: a bit Torrent installed on your Phantom, you could end 507 00:29:19,880 --> 00:29:22,880 Speaker 1: up pirate in games if you wanted to. But by 508 00:29:22,920 --> 00:29:26,800 Speaker 1: having that proprietary layer on top that was encoding games 509 00:29:26,800 --> 00:29:30,480 Speaker 1: in a way that only Infinium Labs machines would run, 510 00:29:31,160 --> 00:29:34,040 Speaker 1: then you didn't have to worry so much. You know, 511 00:29:34,080 --> 00:29:36,840 Speaker 1: people couldn't just take their their phantom and make it 512 00:29:36,880 --> 00:29:39,200 Speaker 1: do anything. They were limited in what they could do 513 00:29:39,280 --> 00:29:40,760 Speaker 1: with it. So it is a kind of a special 514 00:29:40,760 --> 00:29:44,440 Speaker 1: purpose PC, uh, or at least you could reduce the 515 00:29:44,520 --> 00:29:47,240 Speaker 1: number of people who are using it to pirate games. 516 00:29:47,280 --> 00:29:49,240 Speaker 1: I mean, someone is always going to find a way 517 00:29:49,280 --> 00:29:51,560 Speaker 1: to hack hardware and make it do something it wasn't 518 00:29:51,680 --> 00:29:55,600 Speaker 1: intended to do, especially if it started off as a PC. 519 00:29:55,760 --> 00:29:58,240 Speaker 1: That makes it easier and if you know what you're 520 00:29:58,240 --> 00:30:01,640 Speaker 1: doing now. All of the US was met with some skepticism, 521 00:30:01,720 --> 00:30:03,920 Speaker 1: though again I have to stress that we've seen these 522 00:30:03,920 --> 00:30:06,000 Speaker 1: sort of things pan out in the long run with 523 00:30:06,040 --> 00:30:09,040 Speaker 1: stuff like Steam and various video game console markets. But 524 00:30:09,080 --> 00:30:11,920 Speaker 1: at the time it seems so ambitious and so sudden 525 00:30:12,000 --> 00:30:14,240 Speaker 1: and out of the blue that a lot of people 526 00:30:14,280 --> 00:30:16,160 Speaker 1: were worried that this was too good to be true. 527 00:30:16,880 --> 00:30:19,640 Speaker 1: And you know how the rest of that saying goes well. 528 00:30:19,680 --> 00:30:22,520 Speaker 1: Athenium Labs had made some big promises, including a desire 529 00:30:22,560 --> 00:30:24,480 Speaker 1: to get a product on the market in time for 530 00:30:24,560 --> 00:30:28,400 Speaker 1: the two thousand three holiday season. That time came and went, 531 00:30:28,480 --> 00:30:30,320 Speaker 1: and the company had no consoles to show for it, 532 00:30:30,360 --> 00:30:31,960 Speaker 1: but they said, don't worry, it's gonna come out in 533 00:30:32,040 --> 00:30:35,480 Speaker 1: holiday season two thousand four. That time came and went 534 00:30:35,560 --> 00:30:38,800 Speaker 1: as well, and still no console. They did show it 535 00:30:38,840 --> 00:30:41,240 Speaker 1: off a couple of times at different at different trade events, 536 00:30:41,240 --> 00:30:43,520 Speaker 1: like I said, but at least in some cases it 537 00:30:43,560 --> 00:30:46,240 Speaker 1: turned out that it wasn't really a console that people 538 00:30:46,280 --> 00:30:49,520 Speaker 1: were seeing, just the concept of what the console would be, 539 00:30:50,720 --> 00:30:55,200 Speaker 1: even before in Phenium Labs had slipped that two thousand 540 00:30:55,280 --> 00:30:58,040 Speaker 1: four holiday dates. Some people were really suspicious of what 541 00:30:58,080 --> 00:31:00,680 Speaker 1: was going on behind the scenes, which include some folks 542 00:31:01,400 --> 00:31:05,400 Speaker 1: who wrote for hard O c P. That's an online 543 00:31:05,400 --> 00:31:08,880 Speaker 1: magazine that caters to PC owners. You can find tons 544 00:31:08,880 --> 00:31:11,360 Speaker 1: of articles and reviews about all sorts of things over there, 545 00:31:11,400 --> 00:31:16,000 Speaker 1: including a pretty tough investigation into Infinium Labs and Timothy 546 00:31:16,080 --> 00:31:21,040 Speaker 1: Roberts in particular. All Right, so it's September two thousand 547 00:31:21,080 --> 00:31:25,160 Speaker 1: three Wednesday, as it turns out, and an article goes 548 00:31:25,280 --> 00:31:28,640 Speaker 1: up on hard O c P News titled behind the 549 00:31:28,680 --> 00:31:32,240 Speaker 1: Infinium Phantom Console, and it takes a really hard look 550 00:31:32,240 --> 00:31:35,680 Speaker 1: at Timothy Roberts's past as well as the claims made 551 00:31:35,680 --> 00:31:39,360 Speaker 1: by Infinium Labs. The article argued that Roberts had a 552 00:31:39,480 --> 00:31:43,720 Speaker 1: history of starting companies that ultimately failed while raising millions 553 00:31:43,720 --> 00:31:46,720 Speaker 1: of dollars in investment money in the process. So the 554 00:31:46,840 --> 00:31:50,120 Speaker 1: article alleged that Infinium Labs, as of September two thousand three, 555 00:31:50,160 --> 00:31:53,880 Speaker 1: had raised at least twenty five million dollars in venture 556 00:31:53,960 --> 00:31:56,640 Speaker 1: capital and had nothing to show for it. Now, I 557 00:31:56,720 --> 00:32:00,960 Speaker 1: might be inferring too much here, but even the opening 558 00:32:00,960 --> 00:32:03,280 Speaker 1: of this article, to me, it sounds like they're at 559 00:32:03,360 --> 00:32:09,400 Speaker 1: least hinting that perhaps these business ventures weren't meant in sincerity. 560 00:32:09,600 --> 00:32:11,480 Speaker 1: In other words, there might not have ever been an 561 00:32:11,480 --> 00:32:15,200 Speaker 1: intent to actually have a working business there. Again, this 562 00:32:15,280 --> 00:32:20,120 Speaker 1: is my interpretation. The article does not say this outright. Instead, 563 00:32:20,520 --> 00:32:23,040 Speaker 1: it just seems like there's a hint that maybe there's 564 00:32:23,080 --> 00:32:26,920 Speaker 1: some sort of scam shady business stuff going on, And 565 00:32:26,960 --> 00:32:30,280 Speaker 1: it sounds a lot like the main plot behind the Producers. Like, 566 00:32:30,320 --> 00:32:32,440 Speaker 1: if you raise a lot of money for a business 567 00:32:32,520 --> 00:32:35,880 Speaker 1: and that business ultimately fails, you never have any profits. 568 00:32:35,880 --> 00:32:39,280 Speaker 1: You have to worry about paying out to shareholders. If 569 00:32:39,320 --> 00:32:42,600 Speaker 1: the business didn't profit, then you have nothing to pay 570 00:32:42,680 --> 00:32:45,800 Speaker 1: So what what? Who cares if you just happen to 571 00:32:45,880 --> 00:32:50,880 Speaker 1: have bought a few cases of incredibly expensive wine in 572 00:32:50,920 --> 00:32:53,800 Speaker 1: the process, but this may be putting words into hard 573 00:32:53,840 --> 00:32:57,560 Speaker 1: O CPS figurative mouth. At least in that first section, 574 00:32:57,560 --> 00:33:00,480 Speaker 1: there are no outright accusations that Roberts was running any 575 00:33:00,520 --> 00:33:04,120 Speaker 1: sort of scam. But the article continues with a breakdown 576 00:33:04,280 --> 00:33:07,920 Speaker 1: of what the phantom console is supposed to have, essentially 577 00:33:08,000 --> 00:33:10,800 Speaker 1: running that same press release I read earlier, but pointed 578 00:33:10,800 --> 00:33:13,120 Speaker 1: out that at least to that point, the only images 579 00:33:13,200 --> 00:33:16,040 Speaker 1: that had been seen outside the company were three D 580 00:33:16,200 --> 00:33:20,160 Speaker 1: renderings and not actual photographs of a working device. Later 581 00:33:20,200 --> 00:33:23,040 Speaker 1: we would get photos and videos of a device that 582 00:33:23,080 --> 00:33:25,560 Speaker 1: appeared to be working, but at this time there were 583 00:33:25,680 --> 00:33:29,280 Speaker 1: there were no such images available. Next, the article laid 584 00:33:29,280 --> 00:33:31,880 Speaker 1: out the places that Roberts had worked over the previous 585 00:33:32,000 --> 00:33:36,680 Speaker 1: eight years. He had held eight different CEO or director 586 00:33:36,800 --> 00:33:41,000 Speaker 1: level positions in those eight years, according to his own website. 587 00:33:41,240 --> 00:33:45,320 Speaker 1: They included two other companies, when Force LLC and med 588 00:33:45,440 --> 00:33:50,480 Speaker 1: Hire LLC, that were operating operating concurrently within Phinium Labs. So, 589 00:33:50,520 --> 00:33:53,280 Speaker 1: according to his website, he was a director on one 590 00:33:53,400 --> 00:33:57,280 Speaker 1: Force LLC and med Hier LLC while simultaneously serving as 591 00:33:57,280 --> 00:34:01,000 Speaker 1: the CEO of Infinium. Now, the writers at hard O 592 00:34:01,160 --> 00:34:04,960 Speaker 1: c P took time to contact med Hire LLLC to 593 00:34:05,120 --> 00:34:08,440 Speaker 1: check in on Roberts's history. The article states that a 594 00:34:08,440 --> 00:34:13,040 Speaker 1: woman who was identified as Laura Roberts picked up the 595 00:34:13,120 --> 00:34:18,400 Speaker 1: phone and indicated that Laura Roberts different person, uh, and 596 00:34:18,480 --> 00:34:22,239 Speaker 1: Timothy Roberts's mother was in fact the director of med 597 00:34:22,360 --> 00:34:26,719 Speaker 1: Higher lll C, and that Timothy, while being her son, 598 00:34:26,880 --> 00:34:32,480 Speaker 1: was not a director. Later this same Laura Roberts said, oh, no, no, no, 599 00:34:32,560 --> 00:34:36,480 Speaker 1: Timothy Roberts is a co director, but I don't have 600 00:34:36,600 --> 00:34:40,280 Speaker 1: any contact information for him. I don't have a phone 601 00:34:40,320 --> 00:34:44,080 Speaker 1: number or an email address or anything. And when they said, 602 00:34:44,400 --> 00:34:47,319 Speaker 1: isn't it strange that you work for a company but 603 00:34:47,440 --> 00:34:50,200 Speaker 1: you don't have any contact information for one of the 604 00:34:50,280 --> 00:34:53,400 Speaker 1: supposed directors of this company, and her response was he 605 00:34:53,480 --> 00:34:57,160 Speaker 1: changed his phones a lot, which also seems a little weird. 606 00:34:57,680 --> 00:35:01,719 Speaker 1: They also tried contacting when Juan Force LLC, and they 607 00:35:01,760 --> 00:35:04,759 Speaker 1: found out that Timothy's brother, Peter, was the executive vice 608 00:35:04,760 --> 00:35:07,360 Speaker 1: president of that company. So there's a lot of family 609 00:35:07,400 --> 00:35:10,960 Speaker 1: business going on here. The piece then talks about Roberts's 610 00:35:11,080 --> 00:35:14,040 Speaker 1: time at Big and Interira, which I've already covered here, 611 00:35:14,080 --> 00:35:15,680 Speaker 1: so I'm not gonna go back over it. But the 612 00:35:15,680 --> 00:35:18,000 Speaker 1: section framed Roberts as someone who had been involved in 613 00:35:18,040 --> 00:35:21,840 Speaker 1: several remarkable failures, including ones that earned a reputation for 614 00:35:21,960 --> 00:35:26,560 Speaker 1: lavish spending before the coffers ran dry. Next, the article 615 00:35:26,640 --> 00:35:30,640 Speaker 1: turned attention towards the headquarters for the company itself. It 616 00:35:30,760 --> 00:35:34,279 Speaker 1: showed that the register information listing had Infinium Labs is 617 00:35:34,320 --> 00:35:38,400 Speaker 1: address noted as fifty three eighty Gulf of Mexico Drive 618 00:35:38,480 --> 00:35:42,400 Speaker 1: and Longboat Key, Florida. The magazine hired a photographer to 619 00:35:42,440 --> 00:35:44,600 Speaker 1: go to the address to get pictures of the location, 620 00:35:44,640 --> 00:35:47,240 Speaker 1: and what they got back where photos of a small 621 00:35:47,280 --> 00:35:51,319 Speaker 1: strip mall that had one open office space that had 622 00:35:51,400 --> 00:35:54,920 Speaker 1: inside of it a single desk with a telephone on it. 623 00:35:55,560 --> 00:35:57,920 Speaker 1: There were other small businesses at that address, but they 624 00:35:57,920 --> 00:36:00,400 Speaker 1: were all identified that none of them were in Phinium Labs. 625 00:36:00,840 --> 00:36:03,800 Speaker 1: Six months later, the magazine had tried again, sending another 626 00:36:03,840 --> 00:36:07,120 Speaker 1: photographer out to that same location. Again there was no 627 00:36:07,200 --> 00:36:11,200 Speaker 1: evidence of an office operated by Infinium Labs there. They 628 00:36:11,239 --> 00:36:14,680 Speaker 1: decided to inquire at a nearby mailboxes, etcetera that was 629 00:36:14,760 --> 00:36:17,719 Speaker 1: part of this area, and they found that the mail 630 00:36:17,840 --> 00:36:20,279 Speaker 1: that was being sent to Infinium Labs was going to 631 00:36:20,320 --> 00:36:23,719 Speaker 1: a p O box at mailboxes, etcetera, and that the 632 00:36:23,840 --> 00:36:27,359 Speaker 1: company did not appear to operate any physical space at 633 00:36:27,440 --> 00:36:31,719 Speaker 1: that particular address. Curious or and curious er. Well, a 634 00:36:31,800 --> 00:36:34,879 Speaker 1: story gets even more weird, But before I jump into 635 00:36:34,880 --> 00:36:37,360 Speaker 1: any more of it, let's take another quick break to 636 00:36:37,480 --> 00:36:47,720 Speaker 1: thank our sponsor. Back to the story, So hard OCP 637 00:36:47,880 --> 00:36:51,360 Speaker 1: reaches out to Timothy Roberts to get his response, and 638 00:36:51,480 --> 00:36:54,160 Speaker 1: Robert said that things were just getting started over at 639 00:36:54,160 --> 00:36:57,120 Speaker 1: Infinium Labs, and he admitted that there was no physical 640 00:36:57,239 --> 00:36:59,680 Speaker 1: office yet, but that it was on its way and 641 00:36:59,719 --> 00:37:03,360 Speaker 1: they are just trying to, you know, get everything in order. Now. 642 00:37:04,520 --> 00:37:06,719 Speaker 1: You could be really generous and say, all right, I 643 00:37:06,760 --> 00:37:09,759 Speaker 1: believe you, but considering that the company was going to 644 00:37:09,800 --> 00:37:12,120 Speaker 1: have to go into production soon to get units out 645 00:37:12,120 --> 00:37:15,960 Speaker 1: by the holiday season, that was kind of tough, right, 646 00:37:16,040 --> 00:37:20,120 Speaker 1: hard o CP was really skeptical because that time was 647 00:37:20,160 --> 00:37:22,680 Speaker 1: coming up quickly and if they didn't have a physical space, 648 00:37:22,719 --> 00:37:25,600 Speaker 1: how are they going to actually build these consoles that 649 00:37:25,680 --> 00:37:27,960 Speaker 1: supposedly we're going to be on sale in time for 650 00:37:27,960 --> 00:37:32,239 Speaker 1: the holidays. They even followed up by sending a volunteer 651 00:37:32,600 --> 00:37:37,080 Speaker 1: to a different address in Thenium Labs Corporation announced it 652 00:37:37,120 --> 00:37:41,000 Speaker 1: was moving into a new headquarters building at eighteen nineteen 653 00:37:41,160 --> 00:37:45,160 Speaker 1: Main Street, Suite eight hundred in Sarasota, Florida, and the 654 00:37:45,239 --> 00:37:47,839 Speaker 1: volunteer said that when she went to the building, she 655 00:37:47,880 --> 00:37:51,360 Speaker 1: looked at the directory and saw no companies listed for 656 00:37:51,520 --> 00:37:53,560 Speaker 1: the eighth floor at all. There was an eighth floor, 657 00:37:53,600 --> 00:37:55,560 Speaker 1: so at least there's that, but there was no one 658 00:37:55,600 --> 00:37:58,080 Speaker 1: listed for it. So she took an elevator ride on 659 00:37:58,200 --> 00:37:59,680 Speaker 1: up to the eighth floor, and then she said, it 660 00:37:59,719 --> 00:38:02,960 Speaker 1: was a post town. There was there's no occupation on 661 00:38:02,960 --> 00:38:06,560 Speaker 1: that floor. Now, near the end of the article, you 662 00:38:06,600 --> 00:38:08,920 Speaker 1: get to a pretty tough paragraph. I'm going to quote it. 663 00:38:09,840 --> 00:38:14,880 Speaker 1: The facts speak for themselves. Company closures, bankruptcy, investors losing 664 00:38:14,920 --> 00:38:18,440 Speaker 1: millions of dollars, and current director positions where the company 665 00:38:18,560 --> 00:38:21,680 Speaker 1: isn't even sure he works for them and cannot find 666 00:38:21,719 --> 00:38:25,319 Speaker 1: his email address or telephone number. Mr Roberts has been 667 00:38:25,360 --> 00:38:29,480 Speaker 1: involved with one successful business venture in eight years, according 668 00:38:29,520 --> 00:38:32,399 Speaker 1: to his own resume. He followed that one up with 669 00:38:32,440 --> 00:38:36,319 Speaker 1: several bankrupt and failed businesses. It's been documented by other 670 00:38:36,360 --> 00:38:40,440 Speaker 1: sources that millions and millions of dollars were burned through 671 00:38:40,560 --> 00:38:43,960 Speaker 1: in the last six years. We think that it's possible 672 00:38:44,120 --> 00:38:48,839 Speaker 1: that the same fate could very possibly befall in Phinium Labs. Now. 673 00:38:48,840 --> 00:38:52,719 Speaker 1: The response from Infinium Labs was just as harsh. The 674 00:38:52,800 --> 00:38:55,520 Speaker 1: company complained and said that they were going to file 675 00:38:55,680 --> 00:38:59,160 Speaker 1: a lawsuit against hard O c P in Florida, saying 676 00:38:59,200 --> 00:39:03,960 Speaker 1: that they had made these UH these unsubstantiated claims and 677 00:39:04,000 --> 00:39:07,600 Speaker 1: accusations against the company and therefore had hurt the company's 678 00:39:07,800 --> 00:39:11,320 Speaker 1: UH chances of raising money and getting investment, and therefore, 679 00:39:11,800 --> 00:39:15,880 Speaker 1: if they failed, it would be because of criticism like 680 00:39:16,000 --> 00:39:19,840 Speaker 1: the kind from heart O CP. Heart O CP responded 681 00:39:19,880 --> 00:39:24,800 Speaker 1: by filing a lawsuit for a declatory judgment and saying 682 00:39:24,840 --> 00:39:28,160 Speaker 1: that they didn't do anything wrong from a judge. So 683 00:39:28,239 --> 00:39:31,040 Speaker 1: the judge decided that he would hear the case and 684 00:39:31,280 --> 00:39:34,719 Speaker 1: said that Anthidium Labs would need to present information about 685 00:39:34,719 --> 00:39:39,520 Speaker 1: the company's business in Texas because they reportedly had an 686 00:39:39,560 --> 00:39:43,800 Speaker 1: office located in Texas. They would also have to provide 687 00:39:43,840 --> 00:39:47,839 Speaker 1: information about their investors board minute meetings from around the 688 00:39:47,840 --> 00:39:50,000 Speaker 1: time that the article was published in order to indicate 689 00:39:50,040 --> 00:39:53,520 Speaker 1: whether the company was, as they had claimed, much further 690 00:39:53,640 --> 00:39:57,440 Speaker 1: along than the article had indicated, and also other information 691 00:39:57,719 --> 00:40:02,000 Speaker 1: such as Timothy Roberts's own personal income tax records, and 692 00:40:02,040 --> 00:40:06,840 Speaker 1: Phinium Labs failed to acquiesce to those demands, and ultimately 693 00:40:07,120 --> 00:40:10,560 Speaker 1: the company would settle out of court, reportedly paying hard 694 00:40:10,600 --> 00:40:14,920 Speaker 1: O c p. Fifty thousand dollars in the process. Now, 695 00:40:14,960 --> 00:40:17,759 Speaker 1: in two thousand four, despite having nothing to show for 696 00:40:17,840 --> 00:40:21,160 Speaker 1: itself other than this prototype that had been demonstrated, a 697 00:40:21,200 --> 00:40:24,840 Speaker 1: couple of trade show events and Phenium Labs went public. 698 00:40:24,960 --> 00:40:27,080 Speaker 1: They went from a privately held company to a publicly 699 00:40:27,120 --> 00:40:31,800 Speaker 1: traded company. Timothy Roberts owned a whole lot of shares 700 00:40:31,880 --> 00:40:35,560 Speaker 1: of stock, and by two thousand five things were looking 701 00:40:35,840 --> 00:40:39,520 Speaker 1: particularly shady over at in Phinium Labs. Remember they had 702 00:40:40,080 --> 00:40:43,799 Speaker 1: missed to ship dates already with the Phantom Console. Well, 703 00:40:43,920 --> 00:40:47,400 Speaker 1: Roberts decided to step down as CEO. He still had 704 00:40:47,440 --> 00:40:50,080 Speaker 1: millions of dollars worth of stocks at the time, and 705 00:40:50,120 --> 00:40:53,239 Speaker 1: he did something that got the attention of the US government. 706 00:40:53,600 --> 00:40:57,360 Speaker 1: He hired a stock promoter to send out a facts 707 00:40:57,520 --> 00:41:01,200 Speaker 1: blast to potential investors with claims that the company was 708 00:41:01,239 --> 00:41:04,200 Speaker 1: on the verge of releasing the Phantom Console and then 709 00:41:04,239 --> 00:41:06,200 Speaker 1: the value of the company was set to blast off 710 00:41:06,239 --> 00:41:09,960 Speaker 1: into the stratosphere. So at the time, this was a 711 00:41:10,000 --> 00:41:14,799 Speaker 1: penny stock, meaning super cheap stocks for infinium labs. But 712 00:41:15,160 --> 00:41:18,040 Speaker 1: with penny stocks, even the increase of just a couple 713 00:41:18,040 --> 00:41:21,680 Speaker 1: of cents can mean a huge profit if you own 714 00:41:21,880 --> 00:41:25,560 Speaker 1: a ton of stocks. So, as it turns out, it 715 00:41:25,640 --> 00:41:29,279 Speaker 1: looked like Timothy Roberts was trying to drive up the 716 00:41:29,400 --> 00:41:34,440 Speaker 1: stock price before he sold off his own stock. Roberts 717 00:41:34,560 --> 00:41:36,759 Speaker 1: was ready to unload it once that price goes up, 718 00:41:36,760 --> 00:41:40,080 Speaker 1: and that's called a pump and dump scheme. You do 719 00:41:40,200 --> 00:41:42,560 Speaker 1: something to artificially pump up the value of a stock 720 00:41:42,800 --> 00:41:46,239 Speaker 1: before you sell off your supply. When the dust settles 721 00:41:46,440 --> 00:41:49,200 Speaker 1: and people see that the hype was just hype, the 722 00:41:49,239 --> 00:41:51,680 Speaker 1: price comes back down, but by then you're already moving 723 00:41:51,680 --> 00:41:54,480 Speaker 1: on to your next gig. Right, Well, that's what the 724 00:41:54,760 --> 00:41:58,239 Speaker 1: SEC said Timothy Roberts had done. That he had effectively 725 00:41:58,320 --> 00:42:02,320 Speaker 1: run a pump and dump scam using infinium labs, and 726 00:42:02,560 --> 00:42:05,960 Speaker 1: the SEC is the Security Exchange Commission, that they were 727 00:42:06,000 --> 00:42:09,880 Speaker 1: not happy and they had some serious concerns. Now Roberts 728 00:42:09,880 --> 00:42:13,560 Speaker 1: would end up getting off relatively easy, all things considered. 729 00:42:13,920 --> 00:42:17,200 Speaker 1: He was ultimately hit with a thirty thousand dollar fine 730 00:42:17,280 --> 00:42:20,480 Speaker 1: after he reached a settlement with the SEC and as 731 00:42:20,480 --> 00:42:23,719 Speaker 1: part of that settlement, he also agreed to not be 732 00:42:23,880 --> 00:42:27,359 Speaker 1: an officer or director of a publicly traded company for 733 00:42:27,520 --> 00:42:30,279 Speaker 1: five years, and he was supposed to stop playing with 734 00:42:30,320 --> 00:42:34,840 Speaker 1: penny stocks too. Back to Infinium Labs, the company changed 735 00:42:34,880 --> 00:42:38,040 Speaker 1: its name to Phantom Entertainment, and by two thousand six 736 00:42:38,400 --> 00:42:41,799 Speaker 1: they had kind of quietly ended all promotion and discussion 737 00:42:41,880 --> 00:42:46,440 Speaker 1: of this console that never ever materialized. Instead, the company 738 00:42:46,440 --> 00:42:49,280 Speaker 1: decided it was going to pivot and release a gaming 739 00:42:49,320 --> 00:42:52,719 Speaker 1: mouse and keyboard, which sounded a lot like the lapboard 740 00:42:52,800 --> 00:42:55,080 Speaker 1: that was originally going to be part of the Phantom 741 00:42:55,160 --> 00:42:59,520 Speaker 1: console hardware. In September two thousand six, they said this 742 00:42:59,600 --> 00:43:03,040 Speaker 1: lap was going to start hitting store shelves in November 743 00:43:03,040 --> 00:43:06,080 Speaker 1: two thousand six. In reality, it would take two more 744 00:43:06,160 --> 00:43:09,160 Speaker 1: years before the lap board was actually available, towards the 745 00:43:09,160 --> 00:43:12,840 Speaker 1: second half of two thousand eight. In two thousand seven, 746 00:43:13,320 --> 00:43:16,799 Speaker 1: ARS Technica wrote another piece about the company, detailing its 747 00:43:16,840 --> 00:43:19,960 Speaker 1: many problems, including how the headquarters had bounced around from 748 00:43:19,960 --> 00:43:23,759 Speaker 1: Florida to Washington State to New York and was supposedly 749 00:43:23,760 --> 00:43:27,759 Speaker 1: going to move back into Florida. The article's author, Nate Anderson, 750 00:43:28,080 --> 00:43:31,920 Speaker 1: detailed the many problems the company had with various creditors 751 00:43:31,960 --> 00:43:35,760 Speaker 1: and its strategy of issuing more stock when it needed cash, 752 00:43:36,280 --> 00:43:39,160 Speaker 1: and it did this a lot with companies like Merrill 753 00:43:39,280 --> 00:43:43,120 Speaker 1: Lynch or the Motley Fool or Center Point Property, and 754 00:43:43,160 --> 00:43:46,120 Speaker 1: on three occasions by issuing stock to members of the 755 00:43:46,160 --> 00:43:51,399 Speaker 1: Basharra family that had leveled three different lawsuits against the company. Now, 756 00:43:51,440 --> 00:43:54,480 Speaker 1: this did not exactly paint the picture of a legitimate corporation. 757 00:43:54,640 --> 00:43:57,400 Speaker 1: According to Anderson, by two thousand seven, the company had 758 00:43:57,400 --> 00:44:00,800 Speaker 1: been operating at a net loss of more than seventy 759 00:44:00,920 --> 00:44:08,399 Speaker 1: three million dollars. Yikes. When the Lapboard finally did come out, 760 00:44:08,800 --> 00:44:12,200 Speaker 1: it ended up getting really lackluster reviews. A quick jump 761 00:44:12,239 --> 00:44:16,200 Speaker 1: over to the Phantom Entertainment website shows that, amazingly enough, 762 00:44:17,200 --> 00:44:19,799 Speaker 1: it still exists. I don't know if the company does, 763 00:44:19,840 --> 00:44:22,080 Speaker 1: but the website is still up. It hasn't been updated 764 00:44:22,080 --> 00:44:24,919 Speaker 1: since two thousand eleven, but it is still there. As 765 00:44:24,920 --> 00:44:27,759 Speaker 1: for Timothy Roberts, why has that scamp been up to 766 00:44:27,880 --> 00:44:30,920 Speaker 1: since his departure from Athinium Labs. Well, in two thousand 767 00:44:31,000 --> 00:44:34,200 Speaker 1: seven he founded a company called Game Streamer, or at 768 00:44:34,280 --> 00:44:37,160 Speaker 1: least that's when the company's press release says it was 769 00:44:37,239 --> 00:44:39,680 Speaker 1: founded was two thousand seven. The actual existence of the 770 00:44:39,680 --> 00:44:43,480 Speaker 1: company wasn't revealed until two thousand nine, so whether it 771 00:44:43,520 --> 00:44:46,880 Speaker 1: had existed for two years secretly or not, who's to say. 772 00:44:47,040 --> 00:44:50,400 Speaker 1: Now Roberts had listed himself as the CEO and CTO 773 00:44:50,760 --> 00:44:55,120 Speaker 1: and president and CEO B on the company profile. This 774 00:44:55,200 --> 00:44:57,600 Speaker 1: was a privately held company, however, so there was no 775 00:44:57,680 --> 00:44:59,759 Speaker 1: conflict with this agreement that he had made with the 776 00:45:00,040 --> 00:45:02,840 Speaker 1: c C a few years earlier, because that only applied 777 00:45:02,840 --> 00:45:06,200 Speaker 1: to publicly traded companies. It was also based in Tampa, 778 00:45:06,239 --> 00:45:08,520 Speaker 1: and it was supposed to be a leading innovator in 779 00:45:08,600 --> 00:45:13,000 Speaker 1: digital distribution and streaming solution for games. Now, Roberts wouldn't 780 00:45:13,040 --> 00:45:15,640 Speaker 1: stay there for very long. In two thousand and ten, 781 00:45:16,000 --> 00:45:19,320 Speaker 1: he and a guy named Terence F. Taylor, the CFO 782 00:45:19,480 --> 00:45:23,120 Speaker 1: of Game Streamer, resigned to start a new company together. 783 00:45:23,600 --> 00:45:27,120 Speaker 1: This was originally going to be a company called Platforms 784 00:45:27,680 --> 00:45:30,239 Speaker 1: with a Z at the end, and it was a 785 00:45:30,280 --> 00:45:34,560 Speaker 1: digital distribution company. But we can't leave game Streamer that quickly, 786 00:45:34,600 --> 00:45:37,600 Speaker 1: you see. The company would end up suing both Roberts 787 00:45:37,719 --> 00:45:40,399 Speaker 1: and Taylor. They claimed that both of them had tried 788 00:45:40,440 --> 00:45:45,880 Speaker 1: to secure trade secrets belonging to game Streamers for themselves Essentially, 789 00:45:46,360 --> 00:45:50,880 Speaker 1: the allegation was that Timothy Roberts had registered domain names 790 00:45:50,960 --> 00:45:54,960 Speaker 1: and trademarks under his own name rather than under the 791 00:45:55,120 --> 00:45:58,120 Speaker 1: Game Streamers company name, and that he then planned on 792 00:45:58,200 --> 00:46:00,680 Speaker 1: using those same ideas in a business this that would 793 00:46:00,680 --> 00:46:05,240 Speaker 1: compete directly with game Streamers. The company also accused Roberts 794 00:46:05,239 --> 00:46:07,800 Speaker 1: of threatening them, saying that he was going to reveal 795 00:46:07,880 --> 00:46:11,640 Speaker 1: confidential company information that would ultimately harm the business. Now, 796 00:46:11,680 --> 00:46:16,600 Speaker 1: Taylor and Roberts countersued Game Streamers. They alleged, among other things, 797 00:46:16,760 --> 00:46:19,400 Speaker 1: that they were both being fired for game Streamers because 798 00:46:19,400 --> 00:46:23,200 Speaker 1: they refused to convert to Seventh day adventist. I am 799 00:46:23,239 --> 00:46:26,560 Speaker 1: not making any of that up. Ultimately, those lawsuits would 800 00:46:26,560 --> 00:46:28,560 Speaker 1: all settle out of court in two thousand eleven. But 801 00:46:28,760 --> 00:46:32,160 Speaker 1: our story ain't over yet, folks. Roberts and Taylor would 802 00:46:32,200 --> 00:46:34,680 Speaker 1: launch another business in two thousand eleven, and it was 803 00:46:34,719 --> 00:46:38,600 Speaker 1: called Savtira. It was billed as a cloud computing company, 804 00:46:38,760 --> 00:46:42,040 Speaker 1: and its name was a combination of Savva's. Remember that 805 00:46:42,160 --> 00:46:45,800 Speaker 1: was the first company Roberts had worked with, and in Tira, 806 00:46:45,920 --> 00:46:48,000 Speaker 1: which was that big failed company he had worked with, 807 00:46:48,080 --> 00:46:49,880 Speaker 1: Which makes me wonder if Roberts was running out of 808 00:46:49,920 --> 00:46:52,600 Speaker 1: ideas at this point to combine two names of previous 809 00:46:52,640 --> 00:46:56,319 Speaker 1: businesses into a third one, and it's height. Savtira had 810 00:46:56,360 --> 00:47:00,160 Speaker 1: a valuation of five hundred million dollars. But he is 811 00:47:00,200 --> 00:47:05,120 Speaker 1: the problem. It was actually worthless. In fact, Sevtira had 812 00:47:05,320 --> 00:47:08,600 Speaker 1: to declare bankruptcy in two thousand twelve and it went 813 00:47:08,600 --> 00:47:11,720 Speaker 1: into Chapter eleven, but then was forced into Chapter seven, 814 00:47:11,760 --> 00:47:15,680 Speaker 1: which means it was liquidated. A judge ordered all assets 815 00:47:15,920 --> 00:47:19,920 Speaker 1: liquidated to pay off creditors. Robertson Taylor had been selling 816 00:47:19,960 --> 00:47:23,040 Speaker 1: stock certificates for a company that simply could not conduct 817 00:47:23,080 --> 00:47:26,400 Speaker 1: business as was claimed, and this wasn't just bad news 818 00:47:26,400 --> 00:47:29,080 Speaker 1: to wealthy investors who were out of a big wad 819 00:47:29,120 --> 00:47:33,040 Speaker 1: of cash. Savtira's employees suffered as well. There were real 820 00:47:33,200 --> 00:47:35,640 Speaker 1: people who had been working for a company under the 821 00:47:35,680 --> 00:47:38,680 Speaker 1: belief that it was a legitimate business, but their paychecks 822 00:47:38,840 --> 00:47:41,879 Speaker 1: stopped as the company ran out of cash, and toward 823 00:47:41,960 --> 00:47:44,680 Speaker 1: the end, the company's bank account was at negative five 824 00:47:44,719 --> 00:47:46,799 Speaker 1: thousand dollars before they were able to secure at two 825 00:47:47,160 --> 00:47:50,680 Speaker 1: fifty thousand dollar alone. Allegedly, a good amount of that 826 00:47:50,760 --> 00:47:53,360 Speaker 1: loan would end up going to some personal expenses that 827 00:47:53,480 --> 00:47:56,959 Speaker 1: roberts had accumulated, rather than to actually pay off creditors 828 00:47:57,000 --> 00:48:01,319 Speaker 1: of the company. According to prosecutor, because yes, of course 829 00:48:01,360 --> 00:48:03,640 Speaker 1: this is going to end in another court case. It 830 00:48:03,680 --> 00:48:07,640 Speaker 1: was all based on false revenue projections. That's what the value, 831 00:48:07,760 --> 00:48:11,800 Speaker 1: the perceived value of this company was hinging upon. Robertson 832 00:48:11,800 --> 00:48:15,040 Speaker 1: Taylor would be arrested on charges that they committed wire fraud. 833 00:48:15,520 --> 00:48:19,279 Speaker 1: Roberts pled guilty or pleaded guilty, and his sentencing was 834 00:48:19,280 --> 00:48:22,040 Speaker 1: scheduled to happen in two thousand and seventeen, though as 835 00:48:22,120 --> 00:48:24,680 Speaker 1: of the recording of this podcast, that still hasn't happened. 836 00:48:24,719 --> 00:48:28,279 Speaker 1: It may happen sometime in mid March. Last I heard, Uh. 837 00:48:28,520 --> 00:48:32,200 Speaker 1: He faces up to twenty years in prison. His buddy 838 00:48:32,480 --> 00:48:36,480 Speaker 1: Terrence Taylor, also pleaded guilty to wire fraud charges, and 839 00:48:36,600 --> 00:48:40,160 Speaker 1: he was recently sentenced to five years in prison back 840 00:48:40,200 --> 00:48:43,359 Speaker 1: in December two thousand seventeen. Now, there's a lot more 841 00:48:43,360 --> 00:48:46,279 Speaker 1: I could say about roberts For example, he also led 842 00:48:46,280 --> 00:48:50,000 Speaker 1: a company called hashing Space, which is a bitcoin minor 843 00:48:50,120 --> 00:48:54,560 Speaker 1: hosting service. Terrence Taylor was the CFO over there too, 844 00:48:54,760 --> 00:48:58,280 Speaker 1: but after the Feds served a six count indictment against 845 00:48:58,280 --> 00:49:01,400 Speaker 1: the two guys, they both up down from that company. 846 00:49:01,520 --> 00:49:07,160 Speaker 1: Hashing Space continued on buying out Roberts's ownership of the company. Anyway, 847 00:49:07,400 --> 00:49:10,759 Speaker 1: that's the story of Timothy Roberts and the Phantom Console, 848 00:49:11,120 --> 00:49:15,160 Speaker 1: and I want a cookie. I do not know to 849 00:49:15,280 --> 00:49:17,920 Speaker 1: this day whether or not the Phantom Console was ever 850 00:49:17,960 --> 00:49:21,040 Speaker 1: sincerely going to be built, or if in fact it 851 00:49:21,120 --> 00:49:25,080 Speaker 1: was just a shell so that Timothy Roberts could raise 852 00:49:25,120 --> 00:49:27,880 Speaker 1: a lot of money from investors and then spend it 853 00:49:28,239 --> 00:49:31,200 Speaker 1: however he liked. I don't know the answer to that. 854 00:49:32,040 --> 00:49:33,839 Speaker 1: There are a lot of indications that showed that there 855 00:49:33,840 --> 00:49:37,880 Speaker 1: were at least some cursory attempts to create some hardware, 856 00:49:37,920 --> 00:49:40,520 Speaker 1: and I'm sure people who are working for the Phantom 857 00:49:40,560 --> 00:49:44,280 Speaker 1: are for Infinium Labs and then later Phantom Entertainment believed 858 00:49:44,280 --> 00:49:46,200 Speaker 1: in their heart of hearts that they were working on 859 00:49:46,239 --> 00:49:49,080 Speaker 1: a product that was going to go to market. But 860 00:49:50,080 --> 00:49:53,320 Speaker 1: whether it was a sincere attempt or just a hoax 861 00:49:53,400 --> 00:49:57,320 Speaker 1: from the beginning, the fact remains it never went anywhere, 862 00:49:57,719 --> 00:49:59,799 Speaker 1: and it became kind of the laughing stock. It was 863 00:49:59,800 --> 00:50:02,719 Speaker 1: one of those things that was held up as not 864 00:50:02,800 --> 00:50:06,040 Speaker 1: just something that to ridicule, but something to show as 865 00:50:06,080 --> 00:50:09,520 Speaker 1: an example of what can happen with Vaporwar, so an 866 00:50:09,520 --> 00:50:13,520 Speaker 1: incredible story, and uh, maybe we'll follow up on this 867 00:50:13,719 --> 00:50:16,640 Speaker 1: later on and talk more about some of the fallout 868 00:50:16,680 --> 00:50:18,480 Speaker 1: and also some of the things that have happened in 869 00:50:18,520 --> 00:50:22,319 Speaker 1: the wake of the Phantom console that brought some of 870 00:50:22,360 --> 00:50:26,160 Speaker 1: those ideas to life. Like I said, while those ideas 871 00:50:26,160 --> 00:50:28,480 Speaker 1: were way ahead of their time, they are ones that 872 00:50:28,520 --> 00:50:32,160 Speaker 1: have found their ways into various game platforms today, whether 873 00:50:32,200 --> 00:50:36,799 Speaker 1: it's PC based stuff like Steam or it's video game consoles. 874 00:50:37,800 --> 00:50:42,920 Speaker 1: We've seen those concepts worked into video gaming. So there 875 00:50:42,960 --> 00:50:46,080 Speaker 1: were some really good ideas there. If they had been 876 00:50:46,640 --> 00:50:50,200 Speaker 1: executed properly, maybe the landscape of gaming would be very 877 00:50:50,200 --> 00:50:53,840 Speaker 1: different today. Maybe in Phinium Labs would be the valve 878 00:50:54,600 --> 00:50:57,880 Speaker 1: of today where they'd be the dominant player in PC 879 00:50:58,080 --> 00:51:04,839 Speaker 1: gaming distribution. But as it stands, not so much. As 880 00:51:04,880 --> 00:51:08,040 Speaker 1: for Phantom Entertainment, I honestly don't know if they're still 881 00:51:08,040 --> 00:51:10,960 Speaker 1: an operation or not. The website still up though, so 882 00:51:11,000 --> 00:51:13,560 Speaker 1: you can go check that out. If you guys have 883 00:51:13,600 --> 00:51:17,800 Speaker 1: any suggestions for future topics I should tackle on this show, 884 00:51:18,000 --> 00:51:19,719 Speaker 1: let me know. You can send me an email the 885 00:51:19,719 --> 00:51:23,160 Speaker 1: addresses tech Stuff at how stuff works dot com, or 886 00:51:23,200 --> 00:51:25,520 Speaker 1: you can drop me a line on Facebook or Twitter. 887 00:51:25,920 --> 00:51:27,799 Speaker 1: The handle we use at both of those is tech 888 00:51:27,840 --> 00:51:30,759 Speaker 1: Stuff hs W. We have an Instagram account. Make sure 889 00:51:30,760 --> 00:51:34,640 Speaker 1: you follow us over there. And remember I live stream 890 00:51:34,719 --> 00:51:37,880 Speaker 1: recordings of tech stuff on Wednesdays and Fridays over at 891 00:51:37,920 --> 00:51:41,160 Speaker 1: twitch dot tv slash tech stuff, So just head over there. 892 00:51:41,160 --> 00:51:43,640 Speaker 1: You'll see the schedule printed there, and you can join 893 00:51:43,719 --> 00:51:46,880 Speaker 1: me and chat in the chat room, and I'll chat 894 00:51:46,960 --> 00:51:49,200 Speaker 1: back at you whenever I get a chance, which is 895 00:51:49,280 --> 00:51:51,920 Speaker 1: usually during the ad breaks and we have a good 896 00:51:51,920 --> 00:51:54,120 Speaker 1: old time. I'd love to see you there and I'll 897 00:51:54,160 --> 00:52:04,120 Speaker 1: talk to you guys again really soon. For moralness and 898 00:52:04,200 --> 00:52:11,800 Speaker 1: thousands of other topics is at how stuff works dot com. 899 00:52:12,239 --> 00:52:12,279 Speaker 1: W