WEBVTT - The Phantom Zone

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<v Speaker 1>Text with Technology with tech Stuff from staff works dot com.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I am your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer here at how Stuff

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<v Speaker 1>Works and a lot of tech. So today we're gonna

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<v Speaker 1>focus on the Phantom, which was a proposed gaming console

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<v Speaker 1>that never made it much further than a prototype. So

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<v Speaker 1>this is kind of a part story about what you

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<v Speaker 1>could consider a tech failure. Some people go much further

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<v Speaker 1>than that. They call it the an example of an

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<v Speaker 1>entire scam or hoax, And I'll let you guys decide

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<v Speaker 1>for yourselves, but I'll say this, there's a lot of

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<v Speaker 1>at least evidence that seems to support that not everything

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<v Speaker 1>was on the up and up. But draw your own conclusions. So, uh,

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<v Speaker 1>the prototype, when it did happen, it was kind of

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<v Speaker 1>cobbled together from standard computer parts. So what was the Phantom, Well,

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<v Speaker 1>it is meant to be a next generation gaming rig

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<v Speaker 1>that would bring PC gaming to the living room back

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<v Speaker 1>in two thousand three, two thousand four, and it proposed

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<v Speaker 1>something fairly revolutionary in the process. Now, today, if you

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<v Speaker 1>were to unveil a gaming device that required you to

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<v Speaker 1>download all the titles to a hard drive, you probably

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<v Speaker 1>wouldn't raise that many eyebrows. It's not uncommon for a

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<v Speaker 1>gaming PC to lack an optical drive, after all, most

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<v Speaker 1>gaming rigs I've seen these days don't have an optical drive.

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<v Speaker 1>And digital delivery of games has been growing in popularity.

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<v Speaker 1>I mean, just take a look at steams numbers, They're incredible.

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<v Speaker 1>There's still a market for physical copies of a game, however,

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<v Speaker 1>particularly since you can potentially sell or trade in old

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<v Speaker 1>games if you use physical media. But overall, I'd say

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<v Speaker 1>the trend has been to move toward more of a

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<v Speaker 1>digital download experience. So if I said I was going

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<v Speaker 1>to launch a brand new console that could only stream

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<v Speaker 1>or download games, I probably wouldn't leave very many people

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<v Speaker 1>scratching their heads today. But the same was not true

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<v Speaker 1>back in January two thousand three. That's the year a

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<v Speaker 1>new company that was called Infinium Labs announced it was

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<v Speaker 1>bringing a gaming console called the Phantom to market. Now,

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<v Speaker 1>this was months before Steam would launch, let alone become

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<v Speaker 1>the dominant online market for computer games. In two thousand three,

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<v Speaker 1>it was pretty much common practice to go to game

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<v Speaker 1>stores or big box outlets to purchase computer titles. So

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<v Speaker 1>when Infinium Labs brazenly announced the company intended to turn

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<v Speaker 1>the home gaming market on its head. They got a

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<v Speaker 1>lot of attention. Now, ultimately the story would be followed

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<v Speaker 1>by controversy, anger, and finally mockery. And it includes allegations

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<v Speaker 1>of fraud or at the very least ineptitude. It involves

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<v Speaker 1>the company that changed its name and switched tracks to

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<v Speaker 1>create a totally different product than the one that was

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<v Speaker 1>promising to consumers. So we're really going to dive into

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<v Speaker 1>the story of the Phantom and what actually happened. Now,

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<v Speaker 1>our story begins. You guys know me, I like to

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<v Speaker 1>always dive further back than when the actual stuff happens.

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<v Speaker 1>Our story really begins almost a decade before any mention

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<v Speaker 1>of the Phantom ever hits the public. In the early

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<v Speaker 1>nineteen nineties in St. Louis, Missouri, They're a man named

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<v Speaker 1>Timothy Munroe Roberts was working at a computer store and

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<v Speaker 1>he had a customer named Andrew Gladney, and the two

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<v Speaker 1>of them began to talk about an idea for a business.

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<v Speaker 1>This was not the business that would become in Phinium Labs, however.

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<v Speaker 1>It was instead to create a data hosting service and

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<v Speaker 1>an early internet data hosting company. They called it the

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<v Speaker 1>Savaths Communications Corporation s A v v I. S now

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<v Speaker 1>Gladwell put up the majority of the starting capital. He

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<v Speaker 1>had a pretty healthy trust fund to draw from. It

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<v Speaker 1>was left to him by his grandfather, who has a

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<v Speaker 1>founder of a company that made a little soft drink

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<v Speaker 1>called seven Up. Together they got the business up and running,

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<v Speaker 1>and the company saw some early success with Robert's landing

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<v Speaker 1>a big deal with Apple Computer Incorporated. And landing Apple

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<v Speaker 1>meant Sabbaths had some serious market buzz behind it, and

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<v Speaker 1>they soon secured several other big contracts. Roberts, however, had

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<v Speaker 1>decided that he wanted to try and do something else,

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<v Speaker 1>so he left Sabbaths in n and went out to

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<v Speaker 1>start a new business. Now. This time, this was a

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<v Speaker 1>web hosting company called in tira I n t I

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<v Speaker 1>r A, also based out of St. Louis, Missouri. Some

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<v Speaker 1>of the concepts the company pushed were predictive of the

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<v Speaker 1>cloud computing craze that would follow a few years later,

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<v Speaker 1>but perhaps it was a touch too early for the company,

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<v Speaker 1>and coupled with the dot com bubble bursting in the

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<v Speaker 1>early two thousand's, it ended up not surviving, it filed

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<v Speaker 1>for bankruptcy protection in two thousand one. Oddly enough, Roberts

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<v Speaker 1>had already extricated himself from the company at that point,

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<v Speaker 1>selling off most of his stock, which in hindsight might

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<v Speaker 1>seem like it was a bit of a tip off.

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<v Speaker 1>Roberts had left in Tira around nt SO a couple

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<v Speaker 1>of years before the company went under, and he went

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<v Speaker 1>on to found another company, this time called Broadband Infrastructure

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<v Speaker 1>Group Corporation, also known as Big b a G. The

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<v Speaker 1>company's mission was to act as a sort of incubator

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<v Speaker 1>for tech companies and developed communications businesses, according to the St.

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<v Speaker 1>Louis Business Journals, So this is still happening in St. Louis,

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<v Speaker 1>Missouri now. According to the St. Louis Post Dispatch, Big

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<v Speaker 1>raised about eighteen million dollars from investors in two thousand

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<v Speaker 1>and it even sponsored a race car during the Indianapolis

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<v Speaker 1>five hundred that year. There are also stories of lavish parties,

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<v Speaker 1>expensive wines. In fact, part of the bankruptcy proceedings, because

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<v Speaker 1>spoiler alert, Big went out of business to part of

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<v Speaker 1>the bankruptcy proceeding has included the auction of twenty four

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<v Speaker 1>models of Chateau Lafitte Rothschild, which was a worth about

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<v Speaker 1>twenty four thousand dollars. Within nine months of raising those

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<v Speaker 1>millions of dollars, b I G closed. Now that led

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<v Speaker 1>to Roberts getting some heat in St. Louis See. I

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<v Speaker 1>changed it to Sant Louis for this part, and soon

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<v Speaker 1>he had folks at the state and federal and city

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<v Speaker 1>levels all asking some really tough questions about his entrepreneurial efforts,

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<v Speaker 1>and undaunted, he picked up stakes and he moved to Florida,

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<v Speaker 1>near Tampa. He started a new company called Infinium Labs,

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<v Speaker 1>and on January twenty, two thousand three, he started the

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<v Speaker 1>company two thousand two, by the way, but in two

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<v Speaker 1>thousand three, on January twenty, company issued a press release

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<v Speaker 1>about their plans. It's a short one, so I'm going

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<v Speaker 1>to actually read the press release. A Tampa Bay area

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<v Speaker 1>technology company in Phinium Labs Corporation, will develop and market

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<v Speaker 1>a new game console that will outperform the Xbox Sony

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<v Speaker 1>PlayStation two GameCube. The company plans to market a high

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<v Speaker 1>performance gaming console and delivery system to provide consumers with

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<v Speaker 1>options and capabilities that are not available in today's marketplace.

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<v Speaker 1>The console will appeal to the hardcore gamer and the

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<v Speaker 1>high end consumer electronic purchaser. The next generation game console

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<v Speaker 1>provides a robust, fault tolerant delivery system that supports games

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<v Speaker 1>on demand, game rentals, game demos, seamless upgrades, and patch management.

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<v Speaker 1>The game console is an always on broadband device. It

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<v Speaker 1>is easy enough for children to use independently, yet so

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<v Speaker 1>advanced it exceeds the needs of hardcore gamers. In Phinium

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<v Speaker 1>Labs was formed by veteran entrepreneurs who have a successful

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<v Speaker 1>track record in building large scale companies and advanced architectures

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<v Speaker 1>for supporting massive e commerce and enterprise applications. Combining skills

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<v Speaker 1>from telco data communications, digital rights management, software development, and security,

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<v Speaker 1>the management team brings together a unique array of skills

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<v Speaker 1>to develop the most robust next ration gaming console and

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<v Speaker 1>delivery network on the market. The Infinium Labs game console

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<v Speaker 1>features a high tech design and offers ease of use

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<v Speaker 1>for the variety of game players worldwide. The on demand

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<v Speaker 1>delivery system will appeal to hardcore gamers as well as

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<v Speaker 1>casual users. The unique design architecture allows for delivery of

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<v Speaker 1>a large number of games and the ability to participate

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<v Speaker 1>in online massive multiplayer gaming. Key features include fastest console

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<v Speaker 1>on the market, broadest selection of preloaded games, cross platform capabilities,

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<v Speaker 1>state of the art design and architecture, advanced accessories and

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<v Speaker 1>wireless capabilities, online connectivity for multiplayer gaming, seamless upgrades and

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<v Speaker 1>patch management. A multi tiered subscription service that meets the

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<v Speaker 1>needs of casual, moderate and hardcore game players, demo games

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<v Speaker 1>before purchasing or subscribing, games on demand, and game rentals.

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<v Speaker 1>The advanced system provides game developers and publishers a secure

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<v Speaker 1>and efficient software distribution system. In Phinium Labs intends for

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<v Speaker 1>game developers and publishers to reap greater profits using this

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<v Speaker 1>new game delivery system. And Phendium Labs has engineered its

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<v Speaker 1>prototypes and it expects to unveil the new gaming console

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<v Speaker 1>in March of two thousand three. The company intends to

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<v Speaker 1>launch the game console to the US consumer market by

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<v Speaker 1>November two thousand three. Remember that date. And Phenium Labs

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<v Speaker 1>has chosen Florida as its corporate headquarters. Florida has emerged

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<v Speaker 1>as a leader in support of technology companies with its

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<v Speaker 1>e Florida initiative. Offices will soon will open soon in

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<v Speaker 1>Silicon Valley and St. Louis, Missouri. About in Phenium Labs

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<v Speaker 1>and Phenium Labs Corporation was formed in October two thousand

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<v Speaker 1>two as a global entertainment gaming company and Phenium Labs

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<v Speaker 1>mission is to market a gaming console and delivery system

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<v Speaker 1>that will be the performance leader in the game playing

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<v Speaker 1>entertainment industry. The company will market a robust game console

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<v Speaker 1>that will appeal to a wide audience with its ease

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<v Speaker 1>of use, quality assurance, and robust delivery systems. Now, we

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<v Speaker 1>could probably say today that those promises we're a little

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<v Speaker 1>astounding for their time time and perhaps even a bit boastful.

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<v Speaker 1>I mean, you're talking about the fastest game console on

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<v Speaker 1>the market. Back in two thousand three, this was a

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<v Speaker 1>new company, untested in this space, setting out to challenge

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<v Speaker 1>entrenched companies like Sony and Nintendo. And then you had Microsoft,

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<v Speaker 1>which was relatively new to the video game console market

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<v Speaker 1>at this point but had already established itself as a

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<v Speaker 1>powerful presence in the industry. And the features the press

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<v Speaker 1>release listed were extremely innovative at the time. I'm sure

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<v Speaker 1>the gamers out there recognize that many of those features

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<v Speaker 1>are now standard on several consoles. For example, both on

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<v Speaker 1>the Xbox One and on the PS four you can

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<v Speaker 1>sample some games and even get some titles as part

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<v Speaker 1>of a monthly subscription service. So that kind of stuff

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<v Speaker 1>today isn't innovative, but at the time it was a

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<v Speaker 1>totally different way of doing business. So the promises being made,

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<v Speaker 1>while advanced, we're all features that would later on become

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<v Speaker 1>standard in video game consoles. It's just that in two

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<v Speaker 1>thousand three, this was a really wild idea, and it

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<v Speaker 1>raised questions was the world ready for an always on

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<v Speaker 1>internet connected console? Now? Judging by the resistance gamers put

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<v Speaker 1>up when Microsoft first said the Xbox One was going

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<v Speaker 1>to follow that same model and being always on broadcast service,

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<v Speaker 1>I think it's safe to say that if pack in

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<v Speaker 1>two thousand three, the world was not ready at that point,

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<v Speaker 1>because it wasn't ready when the Xbox One came out.

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<v Speaker 1>More importantly, was the technology ready or did the company

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<v Speaker 1>make promises that would have been impossible to deliver upon

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<v Speaker 1>even if it had been established as a big player

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<v Speaker 1>in the space up at that point. In other words,

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<v Speaker 1>if this had been Sony or Microsoft, would they have

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<v Speaker 1>been able to pull it off? Or was this just

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<v Speaker 1>a promise that no one at the time could deliver

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<v Speaker 1>upon we'll take a look at more details about the

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<v Speaker 1>unveiling of the Phantom and what happened in the wake

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<v Speaker 1>of that, but first let's take a quick break to

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<v Speaker 1>thank our sponsor. Now, before I get into all the

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<v Speaker 1>controversy that surrounds the Phantom, I thought it would be

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<v Speaker 1>a good idea to talk about what it was supposed

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<v Speaker 1>to have inside of it, what kind of connectors it

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<v Speaker 1>was supposed to have, you know, how it was going

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<v Speaker 1>to connect to your television, and talk a little bit

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<v Speaker 1>more about the subscription service and the online element to this,

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<v Speaker 1>to kind of get an idea of what exactly was

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<v Speaker 1>supposed to come out. Now, keep in mind that not

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<v Speaker 1>all of this ever materialized. Also, this is dependent upon

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<v Speaker 1>technology of the early two thousand's, even the TV technology

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<v Speaker 1>at the time. So there's some things that you would

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<v Speaker 1>have considered would have needed to be standard that we're

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<v Speaker 1>not included, like h d m I is not a

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<v Speaker 1>component on the Phantom spec list, and that's largely because

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<v Speaker 1>back in two thousand three not such a big thing.

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<v Speaker 1>But other things that you don't see as much anymore,

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<v Speaker 1>like composite or component video that definitely was part of it.

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<v Speaker 1>So for the standard components of the Phantom, because you

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<v Speaker 1>could also get optional components added on, or at least

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<v Speaker 1>in three you could. In reality you couldn't get anything.

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<v Speaker 1>The standard components were supposed to include a custom operating

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<v Speaker 1>system on a Windows XPE kernel, so that custom operating

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<v Speaker 1>system was to make it proprietary, kind of like the

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<v Speaker 1>operating systems you would encounter on other video game consoles,

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<v Speaker 1>and it would end up locking you into the Phantom's ecosystem.

0:13:33.920 --> 0:13:35.800
<v Speaker 1>It was supposed to have an a m d Athalon

0:13:36.000 --> 0:13:41.080
<v Speaker 1>XP plus central processing unit which would have approximately one

0:13:41.120 --> 0:13:45.319
<v Speaker 1>point eight giga hurts of CPU power, and it was

0:13:45.360 --> 0:13:49.120
<v Speaker 1>supposed to have an Nvidia g Force f x fred

0:13:49.240 --> 0:13:52.000
<v Speaker 1>Ultra graphics processing unit. Was also supposed to have an

0:13:52.040 --> 0:13:56.080
<v Speaker 1>Nvidia enforced to Ultra four hundred motherboard, two hundred fifty

0:13:56.080 --> 0:14:00.079
<v Speaker 1>six megabytes main memory, forty gigabyte hard drive. Don't be

0:14:00.200 --> 0:14:04.679
<v Speaker 1>digital five point one surround sound onboard, radio frequency wireless

0:14:04.720 --> 0:14:08.240
<v Speaker 1>modules that would allow you to connect things like UM

0:14:08.360 --> 0:14:12.600
<v Speaker 1>wireless mouse or wireless controllers or wireless keyboards to this

0:14:13.160 --> 0:14:16.520
<v Speaker 1>and S video r c A or component video connections

0:14:16.559 --> 0:14:21.040
<v Speaker 1>also composite, as it would turn out uh a Ethernet

0:14:21.160 --> 0:14:23.920
<v Speaker 1>port so that you could actually plug that into your

0:14:23.960 --> 0:14:26.120
<v Speaker 1>Internet connection. That was supposed to always be connected to

0:14:26.160 --> 0:14:29.080
<v Speaker 1>the Internet, so you need to have something a wireless controller,

0:14:29.080 --> 0:14:32.960
<v Speaker 1>a wireless keyboard and mouse, to USB ports, and four

0:14:33.160 --> 0:14:37.040
<v Speaker 1>controller ports. Then there were some optional components you could

0:14:37.080 --> 0:14:40.640
<v Speaker 1>add on to that, which would include extra controllers, either

0:14:40.760 --> 0:14:45.040
<v Speaker 1>wireless or accorded ones, a keyboard and mouse with charging,

0:14:45.080 --> 0:14:49.400
<v Speaker 1>base station storage expansion for additional game storage so you

0:14:49.400 --> 0:14:52.880
<v Speaker 1>could double the amount of storage space on there in theory,

0:14:53.400 --> 0:14:57.840
<v Speaker 1>a DSL modem, a cable modem, a wireless WiFi card,

0:14:58.240 --> 0:15:01.640
<v Speaker 1>memory upgrades, speaker set, and flat screen displays. So in

0:15:01.640 --> 0:15:04.480
<v Speaker 1>other words, you could go from something that you were

0:15:04.640 --> 0:15:06.680
<v Speaker 1>supposed to just hook up to your TV to something

0:15:06.680 --> 0:15:09.600
<v Speaker 1>that would have potentially multiple screens, although as far as

0:15:09.600 --> 0:15:13.040
<v Speaker 1>I can tell, they the graphics card wasn't necessarily set

0:15:13.120 --> 0:15:16.440
<v Speaker 1>up to support multiple displays, but that doesn't mean that

0:15:16.480 --> 0:15:20.200
<v Speaker 1>it couldn't happen. One thing the Phantom did not have

0:15:20.320 --> 0:15:23.040
<v Speaker 1>was any sort of portable storage drive, so there were

0:15:23.080 --> 0:15:27.160
<v Speaker 1>no CD drives, no DVD drives, no cartridges, no floppy disks,

0:15:27.400 --> 0:15:30.040
<v Speaker 1>nothing like that was ever supposed to go into the Phantom.

0:15:30.080 --> 0:15:33.640
<v Speaker 1>All material was meant to be downloaded or streamed directly

0:15:33.680 --> 0:15:36.120
<v Speaker 1>to the console. Now you may hear some of those

0:15:36.160 --> 0:15:38.280
<v Speaker 1>specs and say, well, that just sounds like it's a PC,

0:15:38.440 --> 0:15:40.480
<v Speaker 1>and really, when you get down to it, that's what

0:15:40.560 --> 0:15:43.880
<v Speaker 1>the phantom was. But then, to be fair, all video

0:15:43.920 --> 0:15:48.960
<v Speaker 1>game consoles ultimately end up becoming variations on the concept

0:15:49.000 --> 0:15:52.400
<v Speaker 1>of a personal computer. The big differences you've got some

0:15:52.520 --> 0:15:56.320
<v Speaker 1>changes in architecture. Something like the PlayStation four has an

0:15:56.440 --> 0:16:00.760
<v Speaker 1>architecture that's different than most PCs. Uh And with a console,

0:16:00.800 --> 0:16:03.720
<v Speaker 1>you typically are stuck with the hardware that the system

0:16:03.880 --> 0:16:06.960
<v Speaker 1>came with when it first launched or whenever you bought it.

0:16:07.240 --> 0:16:09.720
<v Speaker 1>So if I go out and buy an Xbox One today,

0:16:10.240 --> 0:16:12.960
<v Speaker 1>it's hard for me to upgrade that. I can probably

0:16:13.040 --> 0:16:16.720
<v Speaker 1>upgrade the storage by adding external storage, but I'm not

0:16:16.760 --> 0:16:19.680
<v Speaker 1>going to be able to upgrade the processor or graphics

0:16:19.680 --> 0:16:22.440
<v Speaker 1>cards or anything like that. With a PC, you can

0:16:22.440 --> 0:16:25.440
<v Speaker 1>actually upgrade components, at least until you bump up against

0:16:25.520 --> 0:16:29.320
<v Speaker 1>limitations like you've got stuff that's going to be too

0:16:29.320 --> 0:16:31.560
<v Speaker 1>big for the size of case that you have, or

0:16:32.240 --> 0:16:35.080
<v Speaker 1>the motherboard will no longer support it, something along those lines,

0:16:35.400 --> 0:16:38.800
<v Speaker 1>And technically you could keep on swapping out components. You're

0:16:38.840 --> 0:16:41.520
<v Speaker 1>essentially building a new computer at that point rather than

0:16:41.560 --> 0:16:46.040
<v Speaker 1>just upgrading. But it is a possibility, but consoles are different.

0:16:46.080 --> 0:16:48.200
<v Speaker 1>You pretty much have to wait for the next generation

0:16:48.400 --> 0:16:54.240
<v Speaker 1>to buy up and and increase your console's capabilities. The

0:16:54.280 --> 0:16:57.800
<v Speaker 1>Phantom was meant to play PC games, so that was

0:16:57.840 --> 0:16:59.880
<v Speaker 1>one concern a lot of people had early on was

0:17:00.120 --> 0:17:03.040
<v Speaker 1>if this in fact was to be a standalone video

0:17:03.080 --> 0:17:05.240
<v Speaker 1>gaming console for the living room that would allow you

0:17:05.240 --> 0:17:07.399
<v Speaker 1>to play PC games in the living room, something that

0:17:07.440 --> 0:17:09.080
<v Speaker 1>a lot of people have been trying to do, and

0:17:09.119 --> 0:17:11.720
<v Speaker 1>in fact today are still trying to do, like steam

0:17:11.760 --> 0:17:17.800
<v Speaker 1>boxes are essentially that same kind of approach. Uh. Even

0:17:17.800 --> 0:17:22.040
<v Speaker 1>though you know that was the mission statement, everyone was

0:17:22.080 --> 0:17:25.320
<v Speaker 1>pointing out, well, what happens when the games get too

0:17:25.320 --> 0:17:28.560
<v Speaker 1>advanced to run on the hardware of the Phantom. You

0:17:28.560 --> 0:17:31.000
<v Speaker 1>would have to upgrade somehow, and you could do some

0:17:31.119 --> 0:17:34.199
<v Speaker 1>upgrades through firmware, but that's not going to make the

0:17:34.240 --> 0:17:37.240
<v Speaker 1>process or work any faster necessarily, or make the graphics

0:17:37.240 --> 0:17:40.280
<v Speaker 1>card work harder. So that was a big concern was

0:17:40.320 --> 0:17:44.439
<v Speaker 1>that if in fact, this is essentially a customized personal

0:17:44.480 --> 0:17:48.320
<v Speaker 1>computer running some proprietary software on top of it then

0:17:48.359 --> 0:17:51.479
<v Speaker 1>what happens when the games get too advanced? Now, as

0:17:51.520 --> 0:17:54.000
<v Speaker 1>it turns out, there was never a need to answer

0:17:54.119 --> 0:17:56.240
<v Speaker 1>that question, but it was one of the early ones.

0:17:57.160 --> 0:17:59.800
<v Speaker 1>And as I mentioned earlier in this episode, the console

0:18:00.040 --> 0:18:02.080
<v Speaker 1>or hit the market, so some people would refer to

0:18:02.119 --> 0:18:06.399
<v Speaker 1>it as vapor ware, but all the components existed. The

0:18:06.440 --> 0:18:08.920
<v Speaker 1>stuff that they talked about really did exist. I mean,

0:18:08.960 --> 0:18:11.600
<v Speaker 1>all of those different elements you could go out there

0:18:11.600 --> 0:18:15.080
<v Speaker 1>and buy, so there was never a problem with that.

0:18:15.119 --> 0:18:17.639
<v Speaker 1>There's just there was no consumer product that featured all

0:18:17.680 --> 0:18:20.560
<v Speaker 1>of those in that configuration as a phantom console. There

0:18:20.560 --> 0:18:23.600
<v Speaker 1>are a couple of prototypes or show models that Infinium

0:18:23.640 --> 0:18:26.040
<v Speaker 1>Labs would trot out at various events like c E

0:18:26.320 --> 0:18:29.159
<v Speaker 1>S or E three, and there's some debate in online

0:18:29.160 --> 0:18:32.000
<v Speaker 1>circles as to whether those prototypes represented a real effort

0:18:32.000 --> 0:18:34.640
<v Speaker 1>to create a phantom console or if they were in

0:18:34.680 --> 0:18:36.560
<v Speaker 1>fact just a run of the mill PC inside a

0:18:36.560 --> 0:18:40.320
<v Speaker 1>customized case. In some cases, it wasn't even that. According

0:18:40.359 --> 0:18:43.480
<v Speaker 1>to one story I was reading, a games journalist went

0:18:43.560 --> 0:18:47.000
<v Speaker 1>to E three and saw a demonstration of the phantom

0:18:47.080 --> 0:18:52.560
<v Speaker 1>console and it sat down next to uh representative from

0:18:52.600 --> 0:18:55.640
<v Speaker 1>Infinium Labs who was going to give a demo of

0:18:55.760 --> 0:18:59.119
<v Speaker 1>the whole thing, and they had the console sitting in

0:18:59.200 --> 0:19:01.440
<v Speaker 1>front of them. They tried to launch a game and

0:19:01.600 --> 0:19:04.160
<v Speaker 1>it didn't work out properly, And as it turned out,

0:19:04.880 --> 0:19:10.480
<v Speaker 1>the representative actually revealed to the games journalist that the

0:19:10.520 --> 0:19:14.200
<v Speaker 1>game itself was being run on a PC behind the cabinet,

0:19:14.920 --> 0:19:18.359
<v Speaker 1>that the console that was on display was in fact

0:19:18.359 --> 0:19:20.760
<v Speaker 1>a dummy console. It didn't do anything. It just had

0:19:20.800 --> 0:19:25.200
<v Speaker 1>some lit up letters that spelled out Phantom, but there

0:19:25.280 --> 0:19:28.239
<v Speaker 1>was nothing going on inside of it. Now that's not

0:19:28.320 --> 0:19:33.119
<v Speaker 1>to say that every single instance was a fake console

0:19:33.359 --> 0:19:37.080
<v Speaker 1>with a real PC behind the curtain, Wizard of Oz style,

0:19:37.480 --> 0:19:39.919
<v Speaker 1>but at least according to that one report, that was

0:19:40.000 --> 0:19:43.040
<v Speaker 1>the case. Now, as it turns out, years after the

0:19:43.040 --> 0:19:46.880
<v Speaker 1>Phantom controversy had kind of fizzled out, Ours Technica would

0:19:46.960 --> 0:19:50.840
<v Speaker 1>run a piece about a reader named Eddie Schlessinger who

0:19:50.880 --> 0:19:54.840
<v Speaker 1>worked at a computer repair shop in Venice, Florida. Now remember,

0:19:55.560 --> 0:19:59.639
<v Speaker 1>Infinium Labs was originally located off Florida and around to

0:19:59.800 --> 0:20:03.600
<v Speaker 1>the and twelve. A customer brought in this weird PC console.

0:20:03.760 --> 0:20:08.320
<v Speaker 1>It was branded a Phantom, So apparently this customer had

0:20:08.359 --> 0:20:10.840
<v Speaker 1>bought the set from someone else who had no idea

0:20:10.880 --> 0:20:13.440
<v Speaker 1>what the heck this thing was. For the princely sum

0:20:13.600 --> 0:20:16.560
<v Speaker 1>of two hundred dollars. Now, considering that it may be

0:20:16.760 --> 0:20:19.199
<v Speaker 1>one of a kind, or at least maybe one of

0:20:19.240 --> 0:20:22.639
<v Speaker 1>a dozen or so, that's not bad. Schlessenger had a

0:20:22.680 --> 0:20:25.200
<v Speaker 1>chance to crack it open and look under the hood

0:20:25.200 --> 0:20:29.159
<v Speaker 1>and see what was there. Now, Remember Schlessenger was telling

0:20:29.160 --> 0:20:31.400
<v Speaker 1>Ours Technica about this a few years later, I think

0:20:31.400 --> 0:20:35.240
<v Speaker 1>it was so about three years had passed so, according

0:20:35.280 --> 0:20:41.120
<v Speaker 1>to Schlessenger. Inside the prototype was a motherboard supposedly made

0:20:41.119 --> 0:20:46.480
<v Speaker 1>by a sus That's what Schlessenger thought, had the Nvidia

0:20:46.840 --> 0:20:50.280
<v Speaker 1>fx F a g P video card that had been announced.

0:20:50.400 --> 0:20:52.879
<v Speaker 1>It had some d DR ram um. Some of the

0:20:52.920 --> 0:20:55.199
<v Speaker 1>ports on the back we're working, and others were just

0:20:55.320 --> 0:20:58.800
<v Speaker 1>for show. It had video outputs for composite component and

0:20:59.000 --> 0:21:02.080
<v Speaker 1>S video connector, which again these days we would probably

0:21:02.119 --> 0:21:05.240
<v Speaker 1>just use hd M I instead. It also had audio

0:21:05.240 --> 0:21:08.600
<v Speaker 1>output jacks for optical co acts or our c A connectors,

0:21:09.040 --> 0:21:12.639
<v Speaker 1>and there were four USB ports. The system was not

0:21:12.760 --> 0:21:16.520
<v Speaker 1>in working order, so he ended up making some modifications

0:21:16.520 --> 0:21:19.520
<v Speaker 1>to it, and he even installed a phantom promo video.

0:21:19.600 --> 0:21:22.960
<v Speaker 1>He took a video that had been circulated on the

0:21:23.000 --> 0:21:25.720
<v Speaker 1>internet for a while, and he used that as sort

0:21:25.720 --> 0:21:28.240
<v Speaker 1>of the load up screen for the console, so that

0:21:28.680 --> 0:21:32.880
<v Speaker 1>the customer could say that he owned a working Phantom console. Now,

0:21:32.880 --> 0:21:34.720
<v Speaker 1>it sounds like a lot of the stuff and Phinium

0:21:34.800 --> 0:21:37.880
<v Speaker 1>was claiming the Phantom would include found its way into

0:21:37.920 --> 0:21:41.760
<v Speaker 1>that prototype, which is something. At least not all those

0:21:41.840 --> 0:21:44.040
<v Speaker 1>ports were working. But then if the company wanted to

0:21:44.080 --> 0:21:46.160
<v Speaker 1>create a proof of concept to kind of show how

0:21:46.160 --> 0:21:49.240
<v Speaker 1>the system would work, it might only focus on the

0:21:49.280 --> 0:21:52.159
<v Speaker 1>necessary components to get it to perform as needed for

0:21:52.200 --> 0:21:54.960
<v Speaker 1>a demo. So, in other words, if you're shopping it

0:21:55.000 --> 0:21:57.720
<v Speaker 1>around trying to get some investors to give you money,

0:21:57.920 --> 0:21:59.560
<v Speaker 1>you might have a mock up where it's not a

0:21:59.600 --> 0:22:03.760
<v Speaker 1>fully functional unit, but you want to show off the

0:22:03.840 --> 0:22:06.399
<v Speaker 1>concept so that you can get the funding to complete it.

0:22:06.480 --> 0:22:11.400
<v Speaker 1>That doesn't necessarily mean that the company is shady or

0:22:11.440 --> 0:22:15.399
<v Speaker 1>suspicious in any way. Presumably the finished product would have

0:22:15.480 --> 0:22:18.280
<v Speaker 1>included all of the working components that were being talked

0:22:18.280 --> 0:22:20.800
<v Speaker 1>about in their press releases. Now that would also mean

0:22:20.840 --> 0:22:23.600
<v Speaker 1>customers would get a keyboard and mouse in what Infinium

0:22:23.640 --> 0:22:26.679
<v Speaker 1>Labs was calling a lap pad, And this was an

0:22:26.720 --> 0:22:29.440
<v Speaker 1>attempt to make it easier to play PC style games

0:22:29.480 --> 0:22:32.880
<v Speaker 1>on a home television in your living room. Many PC

0:22:33.080 --> 0:22:36.239
<v Speaker 1>games are compatible with game controllers, but some games, like

0:22:36.359 --> 0:22:39.600
<v Speaker 1>first person shooters or real time strategy games tend to

0:22:39.600 --> 0:22:43.040
<v Speaker 1>work best using a mouse and keyboard approach. If you

0:22:43.160 --> 0:22:45.919
<v Speaker 1>use a controller and you go up against someone else

0:22:45.960 --> 0:22:48.560
<v Speaker 1>who's using mouse and keyboard, you will probably find your

0:22:48.600 --> 0:22:52.280
<v Speaker 1>petuity handed to you. So what about the online service

0:22:52.359 --> 0:22:55.960
<v Speaker 1>part of this whole package? Will Athenium Labs plan to

0:22:56.040 --> 0:23:00.679
<v Speaker 1>operate a Virtual Private Games Network or vpg in And

0:23:00.760 --> 0:23:04.440
<v Speaker 1>this is a special type of virtual private network or VPN.

0:23:04.840 --> 0:23:06.959
<v Speaker 1>And you may have used VPNs for work or for

0:23:07.000 --> 0:23:09.959
<v Speaker 1>your own computers. For those of you who are unfamiliar

0:23:10.000 --> 0:23:12.160
<v Speaker 1>with the idea, let me give you a real quick,

0:23:12.800 --> 0:23:17.080
<v Speaker 1>high level rundown. So a VPN creates a private network

0:23:17.359 --> 0:23:21.440
<v Speaker 1>across a public network. So take the Internet for example.

0:23:21.800 --> 0:23:24.320
<v Speaker 1>That's a public network anyone can hop on or off

0:23:24.359 --> 0:23:28.479
<v Speaker 1>at any time. Private networks require access to machines on

0:23:28.520 --> 0:23:32.080
<v Speaker 1>the network itself, so like a physical private network is

0:23:32.119 --> 0:23:35.200
<v Speaker 1>completely separate from any other network, or it only has

0:23:35.280 --> 0:23:38.960
<v Speaker 1>very controlled portals to other networks. And the only way

0:23:38.960 --> 0:23:41.320
<v Speaker 1>you can get on that physical network is if you

0:23:41.320 --> 0:23:44.680
<v Speaker 1>have access to a machine that's connected to it. Um

0:23:44.720 --> 0:23:48.520
<v Speaker 1>A VPN simulates that it's not a true private network,

0:23:48.600 --> 0:23:53.120
<v Speaker 1>but through code, creates a situation that is essentially like that,

0:23:53.600 --> 0:23:57.280
<v Speaker 1>and it can send that communication across a larger public network.

0:23:58.240 --> 0:24:01.679
<v Speaker 1>This means communication across the ep N is encrypted to

0:24:01.720 --> 0:24:04.840
<v Speaker 1>protect data from snoopers. Otherwise you might as well just

0:24:04.960 --> 0:24:08.480
<v Speaker 1>use a public network in the first place. It's typically

0:24:08.560 --> 0:24:12.240
<v Speaker 1>used by businesses to allow remote employees access to company

0:24:12.320 --> 0:24:16.200
<v Speaker 1>intranet systems. Other folks might use a VPN to communicate

0:24:16.240 --> 0:24:20.200
<v Speaker 1>securely with other people or to access services that might

0:24:20.240 --> 0:24:23.280
<v Speaker 1>otherwise be blocked in their real physical location. So you

0:24:23.359 --> 0:24:26.240
<v Speaker 1>might log into a VPN and use that in order

0:24:26.280 --> 0:24:29.760
<v Speaker 1>to access something that otherwise you would not be able

0:24:29.800 --> 0:24:33.239
<v Speaker 1>to touch from wherever you are. It's really handy if

0:24:33.240 --> 0:24:34.679
<v Speaker 1>you happen to be in a country that has a,

0:24:35.160 --> 0:24:39.040
<v Speaker 1>you know, a more nanny state kind of approach to

0:24:39.480 --> 0:24:42.720
<v Speaker 1>guiding how the Internet should be used by the population.

0:24:43.920 --> 0:24:47.800
<v Speaker 1>So why would Infinium Labs want to operate a vpg N. Well,

0:24:47.920 --> 0:24:51.159
<v Speaker 1>mostly it's to lock a customer into an ecosystem. And

0:24:51.200 --> 0:24:53.479
<v Speaker 1>here's how the business plan would have worked if it

0:24:53.480 --> 0:24:57.240
<v Speaker 1>had ever launched, you decide you're gonna go out and

0:24:57.320 --> 0:24:59.520
<v Speaker 1>buy a Phantom console. Actually, you can have a couple

0:24:59.560 --> 0:25:03.919
<v Speaker 1>of different options. You could purchase one for ad dollars

0:25:04.080 --> 0:25:08.200
<v Speaker 1>at least that was one of the amounts quoted, which

0:25:08.240 --> 0:25:12.119
<v Speaker 1>is actually incredibly cheap. Or you could rent it. Or

0:25:12.280 --> 0:25:15.000
<v Speaker 1>you could sign up for a two year subscription agreement

0:25:15.640 --> 0:25:19.399
<v Speaker 1>with Infinium Labs on their Virtual Private Games Network, and

0:25:19.400 --> 0:25:21.320
<v Speaker 1>if you subscribe for two years, you would get the

0:25:21.359 --> 0:25:26.240
<v Speaker 1>hardware for free. So the subscription would cost twenty nine

0:25:25.560 --> 0:25:29.440
<v Speaker 1>dollars a month, and for that you would be able

0:25:29.480 --> 0:25:32.920
<v Speaker 1>to use the Phantom Network to download games, uh to

0:25:33.119 --> 0:25:36.560
<v Speaker 1>stream games, to play games online with other people. You

0:25:36.600 --> 0:25:39.200
<v Speaker 1>would have access to a suite of games right away

0:25:39.240 --> 0:25:41.600
<v Speaker 1>that would be included with your subscription fee, so you

0:25:41.600 --> 0:25:45.080
<v Speaker 1>wouldn't have to pay any extra for a certain library

0:25:45.200 --> 0:25:48.439
<v Speaker 1>of games. If you wanted games that were beyond that

0:25:48.520 --> 0:25:51.760
<v Speaker 1>library and Infinium Labs had secured the rights, you would

0:25:51.760 --> 0:25:54.480
<v Speaker 1>be able to download demo versions of those for free,

0:25:54.680 --> 0:25:56.520
<v Speaker 1>and if you wanted to purchase it, you could do

0:25:56.600 --> 0:26:00.240
<v Speaker 1>so through infinium labs as online store and down the

0:26:00.240 --> 0:26:03.080
<v Speaker 1>game directly to the console. The console would keep track

0:26:03.119 --> 0:26:05.440
<v Speaker 1>of how much storage space was left, and it could

0:26:05.440 --> 0:26:08.960
<v Speaker 1>even dynamically manage it. So if you start getting close

0:26:09.000 --> 0:26:11.440
<v Speaker 1>to your limit, Remember you've got that forty gigabyte limit.

0:26:11.680 --> 0:26:13.880
<v Speaker 1>Let's say you start getting close to that. These days,

0:26:13.920 --> 0:26:16.200
<v Speaker 1>it wouldn't take long at all because games are so huge.

0:26:16.400 --> 0:26:19.720
<v Speaker 1>But let's talk about two thousand two four, you start

0:26:19.760 --> 0:26:23.320
<v Speaker 1>getting close to that forty gigabyte limit, Well, the phantom

0:26:23.520 --> 0:26:26.320
<v Speaker 1>would end up deleting older games that you had not

0:26:26.520 --> 0:26:29.560
<v Speaker 1>played in a long time, but the service would keep

0:26:29.560 --> 0:26:32.040
<v Speaker 1>track of which games you had purchased, so if you

0:26:32.080 --> 0:26:33.959
<v Speaker 1>ever decided you wanted to go back and play an

0:26:34.000 --> 0:26:37.399
<v Speaker 1>old title, then you could download it again for free

0:26:37.440 --> 0:26:40.679
<v Speaker 1>because you had already purchased it previously, so there'd be

0:26:40.680 --> 0:26:42.600
<v Speaker 1>a record of the fact that you had bought it before,

0:26:42.600 --> 0:26:45.160
<v Speaker 1>and you wouldn't have to buy it a second time. Now,

0:26:45.160 --> 0:26:48.639
<v Speaker 1>in many ways, this is how subscription services like Xbox

0:26:48.680 --> 0:26:53.919
<v Speaker 1>Gold memberships work today. The business plan sounded actually pretty solid.

0:26:53.960 --> 0:26:57.280
<v Speaker 1>It was very innovative for its time. There'd be incentive

0:26:57.359 --> 0:27:00.320
<v Speaker 1>for gamers to subscribe month after month because they could

0:27:00.320 --> 0:27:03.960
<v Speaker 1>get access to the games within the library, as well

0:27:04.000 --> 0:27:08.480
<v Speaker 1>as a chance to buy other brand new games, possibly

0:27:08.560 --> 0:27:11.800
<v Speaker 1>at a discount because you're not buying them the physical media,

0:27:12.000 --> 0:27:15.119
<v Speaker 1>although now we know that doesn't always work out that way.

0:27:15.359 --> 0:27:17.919
<v Speaker 1>You don't always get a discount just because you're not buying,

0:27:18.520 --> 0:27:21.280
<v Speaker 1>you know, a disk. It can be just as expensive

0:27:21.359 --> 0:27:23.840
<v Speaker 1>or sometimes more expensive, to buy the digital version, which

0:27:23.880 --> 0:27:26.480
<v Speaker 1>is infuriating for a lot of people. There were also

0:27:26.560 --> 0:27:29.960
<v Speaker 1>hints that game titles could come out a little earlier,

0:27:30.000 --> 0:27:33.160
<v Speaker 1>so you could get them much quicker than you would

0:27:33.240 --> 0:27:34.639
<v Speaker 1>if you were to have to go to the store.

0:27:34.680 --> 0:27:37.840
<v Speaker 1>There was no danger of them selling out. You didn't

0:27:37.840 --> 0:27:40.919
<v Speaker 1>have to worry about pre registering for a game and

0:27:40.960 --> 0:27:44.400
<v Speaker 1>hoping that the the local game stop or whatever game

0:27:44.480 --> 0:27:47.080
<v Speaker 1>store you would go to would have enough copies on

0:27:47.240 --> 0:27:50.800
<v Speaker 1>launch day. You could just download it. So there were definitely,

0:27:50.840 --> 0:27:53.920
<v Speaker 1>you know, reasons that a gamer might be interested in this,

0:27:54.240 --> 0:27:57.480
<v Speaker 1>Although the thought of having to pay an ongoing subscription

0:27:57.520 --> 0:27:59.720
<v Speaker 1>service to keep using a video game console that you

0:27:59.760 --> 0:28:02.640
<v Speaker 1>would already purchased rubbed a lot of people the wrong way.

0:28:02.680 --> 0:28:07.280
<v Speaker 1>It was an idea that maybe wasn't quite ready yet.

0:28:08.760 --> 0:28:12.560
<v Speaker 1>So on the business side it sounded fantastic because you

0:28:12.560 --> 0:28:15.640
<v Speaker 1>would have a company that would have an incoming, steady

0:28:15.680 --> 0:28:19.680
<v Speaker 1>flow of revenue because it's not just selling a console

0:28:19.880 --> 0:28:22.800
<v Speaker 1>once to a customer. It's selling a console and then

0:28:22.840 --> 0:28:27.120
<v Speaker 1>offering a subscription service and then getting a monthly subscription

0:28:27.160 --> 0:28:30.880
<v Speaker 1>fee from that customer, and then you put that across

0:28:30.920 --> 0:28:35.040
<v Speaker 1>thousands of customers. That's an incredible revenue stream and it's

0:28:35.080 --> 0:28:38.440
<v Speaker 1>obviously one that works for a lot of game developers

0:28:38.480 --> 0:28:41.840
<v Speaker 1>today and game consoles today. But at the time, again

0:28:42.040 --> 0:28:46.920
<v Speaker 1>it was a pretty uh radical idea. Now, on top

0:28:46.960 --> 0:28:50.840
<v Speaker 1>of that, using a proprietary approach for games distribution solved

0:28:50.880 --> 0:28:54.200
<v Speaker 1>another problem the company would otherwise encounter. So this is

0:28:54.240 --> 0:28:58.360
<v Speaker 1>another reason for that virtual Private Games network. The Phantom was,

0:28:58.480 --> 0:29:02.040
<v Speaker 1>as I said, essentially a PC connected to a television,

0:29:02.440 --> 0:29:07.040
<v Speaker 1>So without any sort of proprietary overlay, nothing would necessarily

0:29:07.040 --> 0:29:11.200
<v Speaker 1>stop gamers from downloading games from other sources outside of

0:29:11.200 --> 0:29:13.640
<v Speaker 1>Infinium Labs. If you could just log into the Internet

0:29:13.640 --> 0:29:16.719
<v Speaker 1>and maybe go into a Torrent site, if you had

0:29:16.760 --> 0:29:19.800
<v Speaker 1>a bit Torrent installed on your Phantom, you could end

0:29:19.880 --> 0:29:22.880
<v Speaker 1>up pirate in games if you wanted to. But by

0:29:22.920 --> 0:29:26.800
<v Speaker 1>having that proprietary layer on top that was encoding games

0:29:26.800 --> 0:29:30.480
<v Speaker 1>in a way that only Infinium Labs machines would run,

0:29:31.160 --> 0:29:34.040
<v Speaker 1>then you didn't have to worry so much. You know,

0:29:34.080 --> 0:29:36.840
<v Speaker 1>people couldn't just take their their phantom and make it

0:29:36.880 --> 0:29:39.200
<v Speaker 1>do anything. They were limited in what they could do

0:29:39.280 --> 0:29:40.760
<v Speaker 1>with it. So it is a kind of a special

0:29:40.760 --> 0:29:44.440
<v Speaker 1>purpose PC, uh, or at least you could reduce the

0:29:44.520 --> 0:29:47.240
<v Speaker 1>number of people who are using it to pirate games.

0:29:47.280 --> 0:29:49.240
<v Speaker 1>I mean, someone is always going to find a way

0:29:49.280 --> 0:29:51.560
<v Speaker 1>to hack hardware and make it do something it wasn't

0:29:51.680 --> 0:29:55.600
<v Speaker 1>intended to do, especially if it started off as a PC.

0:29:55.760 --> 0:29:58.240
<v Speaker 1>That makes it easier and if you know what you're

0:29:58.240 --> 0:30:01.640
<v Speaker 1>doing now. All of the US was met with some skepticism,

0:30:01.720 --> 0:30:03.920
<v Speaker 1>though again I have to stress that we've seen these

0:30:03.920 --> 0:30:06.000
<v Speaker 1>sort of things pan out in the long run with

0:30:06.040 --> 0:30:09.040
<v Speaker 1>stuff like Steam and various video game console markets. But

0:30:09.080 --> 0:30:11.920
<v Speaker 1>at the time it seems so ambitious and so sudden

0:30:12.000 --> 0:30:14.240
<v Speaker 1>and out of the blue that a lot of people

0:30:14.280 --> 0:30:16.160
<v Speaker 1>were worried that this was too good to be true.

0:30:16.880 --> 0:30:19.640
<v Speaker 1>And you know how the rest of that saying goes well.

0:30:19.680 --> 0:30:22.520
<v Speaker 1>Athenium Labs had made some big promises, including a desire

0:30:22.560 --> 0:30:24.480
<v Speaker 1>to get a product on the market in time for

0:30:24.560 --> 0:30:28.400
<v Speaker 1>the two thousand three holiday season. That time came and went,

0:30:28.480 --> 0:30:30.320
<v Speaker 1>and the company had no consoles to show for it,

0:30:30.360 --> 0:30:31.960
<v Speaker 1>but they said, don't worry, it's gonna come out in

0:30:32.040 --> 0:30:35.480
<v Speaker 1>holiday season two thousand four. That time came and went

0:30:35.560 --> 0:30:38.800
<v Speaker 1>as well, and still no console. They did show it

0:30:38.840 --> 0:30:41.240
<v Speaker 1>off a couple of times at different at different trade events,

0:30:41.240 --> 0:30:43.520
<v Speaker 1>like I said, but at least in some cases it

0:30:43.560 --> 0:30:46.240
<v Speaker 1>turned out that it wasn't really a console that people

0:30:46.280 --> 0:30:49.520
<v Speaker 1>were seeing, just the concept of what the console would be,

0:30:50.720 --> 0:30:55.200
<v Speaker 1>even before in Phenium Labs had slipped that two thousand

0:30:55.280 --> 0:30:58.040
<v Speaker 1>four holiday dates. Some people were really suspicious of what

0:30:58.080 --> 0:31:00.680
<v Speaker 1>was going on behind the scenes, which include some folks

0:31:01.400 --> 0:31:05.400
<v Speaker 1>who wrote for hard O c P. That's an online

0:31:05.400 --> 0:31:08.880
<v Speaker 1>magazine that caters to PC owners. You can find tons

0:31:08.880 --> 0:31:11.360
<v Speaker 1>of articles and reviews about all sorts of things over there,

0:31:11.400 --> 0:31:16.000
<v Speaker 1>including a pretty tough investigation into Infinium Labs and Timothy

0:31:16.080 --> 0:31:21.040
<v Speaker 1>Roberts in particular. All Right, so it's September two thousand

0:31:21.080 --> 0:31:25.160
<v Speaker 1>three Wednesday, as it turns out, and an article goes

0:31:25.280 --> 0:31:28.640
<v Speaker 1>up on hard O c P News titled behind the

0:31:28.680 --> 0:31:32.240
<v Speaker 1>Infinium Phantom Console, and it takes a really hard look

0:31:32.240 --> 0:31:35.680
<v Speaker 1>at Timothy Roberts's past as well as the claims made

0:31:35.680 --> 0:31:39.360
<v Speaker 1>by Infinium Labs. The article argued that Roberts had a

0:31:39.480 --> 0:31:43.720
<v Speaker 1>history of starting companies that ultimately failed while raising millions

0:31:43.720 --> 0:31:46.720
<v Speaker 1>of dollars in investment money in the process. So the

0:31:46.840 --> 0:31:50.120
<v Speaker 1>article alleged that Infinium Labs, as of September two thousand three,

0:31:50.160 --> 0:31:53.880
<v Speaker 1>had raised at least twenty five million dollars in venture

0:31:53.960 --> 0:31:56.640
<v Speaker 1>capital and had nothing to show for it. Now, I

0:31:56.720 --> 0:32:00.960
<v Speaker 1>might be inferring too much here, but even the opening

0:32:00.960 --> 0:32:03.280
<v Speaker 1>of this article, to me, it sounds like they're at

0:32:03.360 --> 0:32:09.400
<v Speaker 1>least hinting that perhaps these business ventures weren't meant in sincerity.

0:32:09.600 --> 0:32:11.480
<v Speaker 1>In other words, there might not have ever been an

0:32:11.480 --> 0:32:15.200
<v Speaker 1>intent to actually have a working business there. Again, this

0:32:15.280 --> 0:32:20.120
<v Speaker 1>is my interpretation. The article does not say this outright. Instead,

0:32:20.520 --> 0:32:23.040
<v Speaker 1>it just seems like there's a hint that maybe there's

0:32:23.080 --> 0:32:26.920
<v Speaker 1>some sort of scam shady business stuff going on, And

0:32:26.960 --> 0:32:30.280
<v Speaker 1>it sounds a lot like the main plot behind the Producers. Like,

0:32:30.320 --> 0:32:32.440
<v Speaker 1>if you raise a lot of money for a business

0:32:32.520 --> 0:32:35.880
<v Speaker 1>and that business ultimately fails, you never have any profits.

0:32:35.880 --> 0:32:39.280
<v Speaker 1>You have to worry about paying out to shareholders. If

0:32:39.320 --> 0:32:42.600
<v Speaker 1>the business didn't profit, then you have nothing to pay

0:32:42.680 --> 0:32:45.800
<v Speaker 1>So what what? Who cares if you just happen to

0:32:45.880 --> 0:32:50.880
<v Speaker 1>have bought a few cases of incredibly expensive wine in

0:32:50.920 --> 0:32:53.800
<v Speaker 1>the process, but this may be putting words into hard

0:32:53.840 --> 0:32:57.560
<v Speaker 1>O CPS figurative mouth. At least in that first section,

0:32:57.560 --> 0:33:00.480
<v Speaker 1>there are no outright accusations that Roberts was running any

0:33:00.520 --> 0:33:04.120
<v Speaker 1>sort of scam. But the article continues with a breakdown

0:33:04.280 --> 0:33:07.920
<v Speaker 1>of what the phantom console is supposed to have, essentially

0:33:08.000 --> 0:33:10.800
<v Speaker 1>running that same press release I read earlier, but pointed

0:33:10.800 --> 0:33:13.120
<v Speaker 1>out that at least to that point, the only images

0:33:13.200 --> 0:33:16.040
<v Speaker 1>that had been seen outside the company were three D

0:33:16.200 --> 0:33:20.160
<v Speaker 1>renderings and not actual photographs of a working device. Later

0:33:20.200 --> 0:33:23.040
<v Speaker 1>we would get photos and videos of a device that

0:33:23.080 --> 0:33:25.560
<v Speaker 1>appeared to be working, but at this time there were

0:33:25.680 --> 0:33:29.280
<v Speaker 1>there were no such images available. Next, the article laid

0:33:29.280 --> 0:33:31.880
<v Speaker 1>out the places that Roberts had worked over the previous

0:33:32.000 --> 0:33:36.680
<v Speaker 1>eight years. He had held eight different CEO or director

0:33:36.800 --> 0:33:41.000
<v Speaker 1>level positions in those eight years, according to his own website.

0:33:41.240 --> 0:33:45.320
<v Speaker 1>They included two other companies, when Force LLC and med

0:33:45.440 --> 0:33:50.480
<v Speaker 1>Hire LLC, that were operating operating concurrently within Phinium Labs. So,

0:33:50.520 --> 0:33:53.280
<v Speaker 1>according to his website, he was a director on one

0:33:53.400 --> 0:33:57.280
<v Speaker 1>Force LLC and med Hier LLC while simultaneously serving as

0:33:57.280 --> 0:34:01.000
<v Speaker 1>the CEO of Infinium. Now, the writers at hard O

0:34:01.160 --> 0:34:04.960
<v Speaker 1>c P took time to contact med Hire LLLC to

0:34:05.120 --> 0:34:08.440
<v Speaker 1>check in on Roberts's history. The article states that a

0:34:08.440 --> 0:34:13.040
<v Speaker 1>woman who was identified as Laura Roberts picked up the

0:34:13.120 --> 0:34:18.400
<v Speaker 1>phone and indicated that Laura Roberts different person, uh, and

0:34:18.480 --> 0:34:22.239
<v Speaker 1>Timothy Roberts's mother was in fact the director of med

0:34:22.360 --> 0:34:26.719
<v Speaker 1>Higher lll C, and that Timothy, while being her son,

0:34:26.880 --> 0:34:32.480
<v Speaker 1>was not a director. Later this same Laura Roberts said, oh, no, no, no,

0:34:32.560 --> 0:34:36.480
<v Speaker 1>Timothy Roberts is a co director, but I don't have

0:34:36.600 --> 0:34:40.280
<v Speaker 1>any contact information for him. I don't have a phone

0:34:40.320 --> 0:34:44.080
<v Speaker 1>number or an email address or anything. And when they said,

0:34:44.400 --> 0:34:47.319
<v Speaker 1>isn't it strange that you work for a company but

0:34:47.440 --> 0:34:50.200
<v Speaker 1>you don't have any contact information for one of the

0:34:50.280 --> 0:34:53.400
<v Speaker 1>supposed directors of this company, and her response was he

0:34:53.480 --> 0:34:57.160
<v Speaker 1>changed his phones a lot, which also seems a little weird.

0:34:57.680 --> 0:35:01.719
<v Speaker 1>They also tried contacting when Juan Force LLC, and they

0:35:01.760 --> 0:35:04.759
<v Speaker 1>found out that Timothy's brother, Peter, was the executive vice

0:35:04.760 --> 0:35:07.360
<v Speaker 1>president of that company. So there's a lot of family

0:35:07.400 --> 0:35:10.960
<v Speaker 1>business going on here. The piece then talks about Roberts's

0:35:11.080 --> 0:35:14.040
<v Speaker 1>time at Big and Interira, which I've already covered here,

0:35:14.080 --> 0:35:15.680
<v Speaker 1>so I'm not gonna go back over it. But the

0:35:15.680 --> 0:35:18.000
<v Speaker 1>section framed Roberts as someone who had been involved in

0:35:18.040 --> 0:35:21.840
<v Speaker 1>several remarkable failures, including ones that earned a reputation for

0:35:21.960 --> 0:35:26.560
<v Speaker 1>lavish spending before the coffers ran dry. Next, the article

0:35:26.640 --> 0:35:30.640
<v Speaker 1>turned attention towards the headquarters for the company itself. It

0:35:30.760 --> 0:35:34.279
<v Speaker 1>showed that the register information listing had Infinium Labs is

0:35:34.320 --> 0:35:38.400
<v Speaker 1>address noted as fifty three eighty Gulf of Mexico Drive

0:35:38.480 --> 0:35:42.400
<v Speaker 1>and Longboat Key, Florida. The magazine hired a photographer to

0:35:42.440 --> 0:35:44.600
<v Speaker 1>go to the address to get pictures of the location,

0:35:44.640 --> 0:35:47.240
<v Speaker 1>and what they got back where photos of a small

0:35:47.280 --> 0:35:51.319
<v Speaker 1>strip mall that had one open office space that had

0:35:51.400 --> 0:35:54.920
<v Speaker 1>inside of it a single desk with a telephone on it.

0:35:55.560 --> 0:35:57.920
<v Speaker 1>There were other small businesses at that address, but they

0:35:57.920 --> 0:36:00.400
<v Speaker 1>were all identified that none of them were in Phinium Labs.

0:36:00.840 --> 0:36:03.800
<v Speaker 1>Six months later, the magazine had tried again, sending another

0:36:03.840 --> 0:36:07.120
<v Speaker 1>photographer out to that same location. Again there was no

0:36:07.200 --> 0:36:11.200
<v Speaker 1>evidence of an office operated by Infinium Labs there. They

0:36:11.239 --> 0:36:14.680
<v Speaker 1>decided to inquire at a nearby mailboxes, etcetera that was

0:36:14.760 --> 0:36:17.719
<v Speaker 1>part of this area, and they found that the mail

0:36:17.840 --> 0:36:20.279
<v Speaker 1>that was being sent to Infinium Labs was going to

0:36:20.320 --> 0:36:23.719
<v Speaker 1>a p O box at mailboxes, etcetera, and that the

0:36:23.840 --> 0:36:27.359
<v Speaker 1>company did not appear to operate any physical space at

0:36:27.440 --> 0:36:31.719
<v Speaker 1>that particular address. Curious or and curious er. Well, a

0:36:31.800 --> 0:36:34.879
<v Speaker 1>story gets even more weird, But before I jump into

0:36:34.880 --> 0:36:37.360
<v Speaker 1>any more of it, let's take another quick break to

0:36:37.480 --> 0:36:47.720
<v Speaker 1>thank our sponsor. Back to the story, So hard OCP

0:36:47.880 --> 0:36:51.360
<v Speaker 1>reaches out to Timothy Roberts to get his response, and

0:36:51.480 --> 0:36:54.160
<v Speaker 1>Robert said that things were just getting started over at

0:36:54.160 --> 0:36:57.120
<v Speaker 1>Infinium Labs, and he admitted that there was no physical

0:36:57.239 --> 0:36:59.680
<v Speaker 1>office yet, but that it was on its way and

0:36:59.719 --> 0:37:03.360
<v Speaker 1>they are just trying to, you know, get everything in order. Now.

0:37:04.520 --> 0:37:06.719
<v Speaker 1>You could be really generous and say, all right, I

0:37:06.760 --> 0:37:09.759
<v Speaker 1>believe you, but considering that the company was going to

0:37:09.800 --> 0:37:12.120
<v Speaker 1>have to go into production soon to get units out

0:37:12.120 --> 0:37:15.960
<v Speaker 1>by the holiday season, that was kind of tough, right,

0:37:16.040 --> 0:37:20.120
<v Speaker 1>hard o CP was really skeptical because that time was

0:37:20.160 --> 0:37:22.680
<v Speaker 1>coming up quickly and if they didn't have a physical space,

0:37:22.719 --> 0:37:25.600
<v Speaker 1>how are they going to actually build these consoles that

0:37:25.680 --> 0:37:27.960
<v Speaker 1>supposedly we're going to be on sale in time for

0:37:27.960 --> 0:37:32.239
<v Speaker 1>the holidays. They even followed up by sending a volunteer

0:37:32.600 --> 0:37:37.080
<v Speaker 1>to a different address in Thenium Labs Corporation announced it

0:37:37.120 --> 0:37:41.000
<v Speaker 1>was moving into a new headquarters building at eighteen nineteen

0:37:41.160 --> 0:37:45.160
<v Speaker 1>Main Street, Suite eight hundred in Sarasota, Florida, and the

0:37:45.239 --> 0:37:47.839
<v Speaker 1>volunteer said that when she went to the building, she

0:37:47.880 --> 0:37:51.360
<v Speaker 1>looked at the directory and saw no companies listed for

0:37:51.520 --> 0:37:53.560
<v Speaker 1>the eighth floor at all. There was an eighth floor,

0:37:53.600 --> 0:37:55.560
<v Speaker 1>so at least there's that, but there was no one

0:37:55.600 --> 0:37:58.080
<v Speaker 1>listed for it. So she took an elevator ride on

0:37:58.200 --> 0:37:59.680
<v Speaker 1>up to the eighth floor, and then she said, it

0:37:59.719 --> 0:38:02.960
<v Speaker 1>was a post town. There was there's no occupation on

0:38:02.960 --> 0:38:06.560
<v Speaker 1>that floor. Now, near the end of the article, you

0:38:06.600 --> 0:38:08.920
<v Speaker 1>get to a pretty tough paragraph. I'm going to quote it.

0:38:09.840 --> 0:38:14.880
<v Speaker 1>The facts speak for themselves. Company closures, bankruptcy, investors losing

0:38:14.920 --> 0:38:18.440
<v Speaker 1>millions of dollars, and current director positions where the company

0:38:18.560 --> 0:38:21.680
<v Speaker 1>isn't even sure he works for them and cannot find

0:38:21.719 --> 0:38:25.319
<v Speaker 1>his email address or telephone number. Mr Roberts has been

0:38:25.360 --> 0:38:29.480
<v Speaker 1>involved with one successful business venture in eight years, according

0:38:29.520 --> 0:38:32.399
<v Speaker 1>to his own resume. He followed that one up with

0:38:32.440 --> 0:38:36.319
<v Speaker 1>several bankrupt and failed businesses. It's been documented by other

0:38:36.360 --> 0:38:40.440
<v Speaker 1>sources that millions and millions of dollars were burned through

0:38:40.560 --> 0:38:43.960
<v Speaker 1>in the last six years. We think that it's possible

0:38:44.120 --> 0:38:48.839
<v Speaker 1>that the same fate could very possibly befall in Phinium Labs. Now.

0:38:48.840 --> 0:38:52.719
<v Speaker 1>The response from Infinium Labs was just as harsh. The

0:38:52.800 --> 0:38:55.520
<v Speaker 1>company complained and said that they were going to file

0:38:55.680 --> 0:38:59.160
<v Speaker 1>a lawsuit against hard O c P in Florida, saying

0:38:59.200 --> 0:39:03.960
<v Speaker 1>that they had made these UH these unsubstantiated claims and

0:39:04.000 --> 0:39:07.600
<v Speaker 1>accusations against the company and therefore had hurt the company's

0:39:07.800 --> 0:39:11.320
<v Speaker 1>UH chances of raising money and getting investment, and therefore,

0:39:11.800 --> 0:39:15.880
<v Speaker 1>if they failed, it would be because of criticism like

0:39:16.000 --> 0:39:19.840
<v Speaker 1>the kind from heart O CP. Heart O CP responded

0:39:19.880 --> 0:39:24.800
<v Speaker 1>by filing a lawsuit for a declatory judgment and saying

0:39:24.840 --> 0:39:28.160
<v Speaker 1>that they didn't do anything wrong from a judge. So

0:39:28.239 --> 0:39:31.040
<v Speaker 1>the judge decided that he would hear the case and

0:39:31.280 --> 0:39:34.719
<v Speaker 1>said that Anthidium Labs would need to present information about

0:39:34.719 --> 0:39:39.520
<v Speaker 1>the company's business in Texas because they reportedly had an

0:39:39.560 --> 0:39:43.800
<v Speaker 1>office located in Texas. They would also have to provide

0:39:43.840 --> 0:39:47.839
<v Speaker 1>information about their investors board minute meetings from around the

0:39:47.840 --> 0:39:50.000
<v Speaker 1>time that the article was published in order to indicate

0:39:50.040 --> 0:39:53.520
<v Speaker 1>whether the company was, as they had claimed, much further

0:39:53.640 --> 0:39:57.440
<v Speaker 1>along than the article had indicated, and also other information

0:39:57.719 --> 0:40:02.000
<v Speaker 1>such as Timothy Roberts's own personal income tax records, and

0:40:02.040 --> 0:40:06.840
<v Speaker 1>Phinium Labs failed to acquiesce to those demands, and ultimately

0:40:07.120 --> 0:40:10.560
<v Speaker 1>the company would settle out of court, reportedly paying hard

0:40:10.600 --> 0:40:14.920
<v Speaker 1>O c p. Fifty thousand dollars in the process. Now,

0:40:14.960 --> 0:40:17.759
<v Speaker 1>in two thousand four, despite having nothing to show for

0:40:17.840 --> 0:40:21.160
<v Speaker 1>itself other than this prototype that had been demonstrated, a

0:40:21.200 --> 0:40:24.840
<v Speaker 1>couple of trade show events and Phenium Labs went public.

0:40:24.960 --> 0:40:27.080
<v Speaker 1>They went from a privately held company to a publicly

0:40:27.120 --> 0:40:31.800
<v Speaker 1>traded company. Timothy Roberts owned a whole lot of shares

0:40:31.880 --> 0:40:35.560
<v Speaker 1>of stock, and by two thousand five things were looking

0:40:35.840 --> 0:40:39.520
<v Speaker 1>particularly shady over at in Phinium Labs. Remember they had

0:40:40.080 --> 0:40:43.799
<v Speaker 1>missed to ship dates already with the Phantom Console. Well,

0:40:43.920 --> 0:40:47.400
<v Speaker 1>Roberts decided to step down as CEO. He still had

0:40:47.440 --> 0:40:50.080
<v Speaker 1>millions of dollars worth of stocks at the time, and

0:40:50.120 --> 0:40:53.239
<v Speaker 1>he did something that got the attention of the US government.

0:40:53.600 --> 0:40:57.360
<v Speaker 1>He hired a stock promoter to send out a facts

0:40:57.520 --> 0:41:01.200
<v Speaker 1>blast to potential investors with claims that the company was

0:41:01.239 --> 0:41:04.200
<v Speaker 1>on the verge of releasing the Phantom Console and then

0:41:04.239 --> 0:41:06.200
<v Speaker 1>the value of the company was set to blast off

0:41:06.239 --> 0:41:09.960
<v Speaker 1>into the stratosphere. So at the time, this was a

0:41:10.000 --> 0:41:14.799
<v Speaker 1>penny stock, meaning super cheap stocks for infinium labs. But

0:41:15.160 --> 0:41:18.040
<v Speaker 1>with penny stocks, even the increase of just a couple

0:41:18.040 --> 0:41:21.680
<v Speaker 1>of cents can mean a huge profit if you own

0:41:21.880 --> 0:41:25.560
<v Speaker 1>a ton of stocks. So, as it turns out, it

0:41:25.640 --> 0:41:29.279
<v Speaker 1>looked like Timothy Roberts was trying to drive up the

0:41:29.400 --> 0:41:34.440
<v Speaker 1>stock price before he sold off his own stock. Roberts

0:41:34.560 --> 0:41:36.759
<v Speaker 1>was ready to unload it once that price goes up,

0:41:36.760 --> 0:41:40.080
<v Speaker 1>and that's called a pump and dump scheme. You do

0:41:40.200 --> 0:41:42.560
<v Speaker 1>something to artificially pump up the value of a stock

0:41:42.800 --> 0:41:46.239
<v Speaker 1>before you sell off your supply. When the dust settles

0:41:46.440 --> 0:41:49.200
<v Speaker 1>and people see that the hype was just hype, the

0:41:49.239 --> 0:41:51.680
<v Speaker 1>price comes back down, but by then you're already moving

0:41:51.680 --> 0:41:54.480
<v Speaker 1>on to your next gig. Right, Well, that's what the

0:41:54.760 --> 0:41:58.239
<v Speaker 1>SEC said Timothy Roberts had done. That he had effectively

0:41:58.320 --> 0:42:02.320
<v Speaker 1>run a pump and dump scam using infinium labs, and

0:42:02.560 --> 0:42:05.960
<v Speaker 1>the SEC is the Security Exchange Commission, that they were

0:42:06.000 --> 0:42:09.880
<v Speaker 1>not happy and they had some serious concerns. Now Roberts

0:42:09.880 --> 0:42:13.560
<v Speaker 1>would end up getting off relatively easy, all things considered.

0:42:13.920 --> 0:42:17.200
<v Speaker 1>He was ultimately hit with a thirty thousand dollar fine

0:42:17.280 --> 0:42:20.480
<v Speaker 1>after he reached a settlement with the SEC and as

0:42:20.480 --> 0:42:23.719
<v Speaker 1>part of that settlement, he also agreed to not be

0:42:23.880 --> 0:42:27.359
<v Speaker 1>an officer or director of a publicly traded company for

0:42:27.520 --> 0:42:30.279
<v Speaker 1>five years, and he was supposed to stop playing with

0:42:30.320 --> 0:42:34.840
<v Speaker 1>penny stocks too. Back to Infinium Labs, the company changed

0:42:34.880 --> 0:42:38.040
<v Speaker 1>its name to Phantom Entertainment, and by two thousand six

0:42:38.400 --> 0:42:41.799
<v Speaker 1>they had kind of quietly ended all promotion and discussion

0:42:41.880 --> 0:42:46.440
<v Speaker 1>of this console that never ever materialized. Instead, the company

0:42:46.440 --> 0:42:49.280
<v Speaker 1>decided it was going to pivot and release a gaming

0:42:49.320 --> 0:42:52.719
<v Speaker 1>mouse and keyboard, which sounded a lot like the lapboard

0:42:52.800 --> 0:42:55.080
<v Speaker 1>that was originally going to be part of the Phantom

0:42:55.160 --> 0:42:59.520
<v Speaker 1>console hardware. In September two thousand six, they said this

0:42:59.600 --> 0:43:03.040
<v Speaker 1>lap was going to start hitting store shelves in November

0:43:03.040 --> 0:43:06.080
<v Speaker 1>two thousand six. In reality, it would take two more

0:43:06.160 --> 0:43:09.160
<v Speaker 1>years before the lap board was actually available, towards the

0:43:09.160 --> 0:43:12.840
<v Speaker 1>second half of two thousand eight. In two thousand seven,

0:43:13.320 --> 0:43:16.799
<v Speaker 1>ARS Technica wrote another piece about the company, detailing its

0:43:16.840 --> 0:43:19.960
<v Speaker 1>many problems, including how the headquarters had bounced around from

0:43:19.960 --> 0:43:23.759
<v Speaker 1>Florida to Washington State to New York and was supposedly

0:43:23.760 --> 0:43:27.759
<v Speaker 1>going to move back into Florida. The article's author, Nate Anderson,

0:43:28.080 --> 0:43:31.920
<v Speaker 1>detailed the many problems the company had with various creditors

0:43:31.960 --> 0:43:35.760
<v Speaker 1>and its strategy of issuing more stock when it needed cash,

0:43:36.280 --> 0:43:39.160
<v Speaker 1>and it did this a lot with companies like Merrill

0:43:39.280 --> 0:43:43.120
<v Speaker 1>Lynch or the Motley Fool or Center Point Property, and

0:43:43.160 --> 0:43:46.120
<v Speaker 1>on three occasions by issuing stock to members of the

0:43:46.160 --> 0:43:51.399
<v Speaker 1>Basharra family that had leveled three different lawsuits against the company. Now,

0:43:51.440 --> 0:43:54.480
<v Speaker 1>this did not exactly paint the picture of a legitimate corporation.

0:43:54.640 --> 0:43:57.400
<v Speaker 1>According to Anderson, by two thousand seven, the company had

0:43:57.400 --> 0:44:00.800
<v Speaker 1>been operating at a net loss of more than seventy

0:44:00.920 --> 0:44:08.399
<v Speaker 1>three million dollars. Yikes. When the Lapboard finally did come out,

0:44:08.800 --> 0:44:12.200
<v Speaker 1>it ended up getting really lackluster reviews. A quick jump

0:44:12.239 --> 0:44:16.200
<v Speaker 1>over to the Phantom Entertainment website shows that, amazingly enough,

0:44:17.200 --> 0:44:19.799
<v Speaker 1>it still exists. I don't know if the company does,

0:44:19.840 --> 0:44:22.080
<v Speaker 1>but the website is still up. It hasn't been updated

0:44:22.080 --> 0:44:24.919
<v Speaker 1>since two thousand eleven, but it is still there. As

0:44:24.920 --> 0:44:27.759
<v Speaker 1>for Timothy Roberts, why has that scamp been up to

0:44:27.880 --> 0:44:30.920
<v Speaker 1>since his departure from Athinium Labs. Well, in two thousand

0:44:31.000 --> 0:44:34.200
<v Speaker 1>seven he founded a company called Game Streamer, or at

0:44:34.280 --> 0:44:37.160
<v Speaker 1>least that's when the company's press release says it was

0:44:37.239 --> 0:44:39.680
<v Speaker 1>founded was two thousand seven. The actual existence of the

0:44:39.680 --> 0:44:43.480
<v Speaker 1>company wasn't revealed until two thousand nine, so whether it

0:44:43.520 --> 0:44:46.880
<v Speaker 1>had existed for two years secretly or not, who's to say.

0:44:47.040 --> 0:44:50.400
<v Speaker 1>Now Roberts had listed himself as the CEO and CTO

0:44:50.760 --> 0:44:55.120
<v Speaker 1>and president and CEO B on the company profile. This

0:44:55.200 --> 0:44:57.600
<v Speaker 1>was a privately held company, however, so there was no

0:44:57.680 --> 0:44:59.759
<v Speaker 1>conflict with this agreement that he had made with the

0:45:00.040 --> 0:45:02.840
<v Speaker 1>c C a few years earlier, because that only applied

0:45:02.840 --> 0:45:06.200
<v Speaker 1>to publicly traded companies. It was also based in Tampa,

0:45:06.239 --> 0:45:08.520
<v Speaker 1>and it was supposed to be a leading innovator in

0:45:08.600 --> 0:45:13.000
<v Speaker 1>digital distribution and streaming solution for games. Now, Roberts wouldn't

0:45:13.040 --> 0:45:15.640
<v Speaker 1>stay there for very long. In two thousand and ten,

0:45:16.000 --> 0:45:19.320
<v Speaker 1>he and a guy named Terence F. Taylor, the CFO

0:45:19.480 --> 0:45:23.120
<v Speaker 1>of Game Streamer, resigned to start a new company together.

0:45:23.600 --> 0:45:27.120
<v Speaker 1>This was originally going to be a company called Platforms

0:45:27.680 --> 0:45:30.239
<v Speaker 1>with a Z at the end, and it was a

0:45:30.280 --> 0:45:34.560
<v Speaker 1>digital distribution company. But we can't leave game Streamer that quickly,

0:45:34.600 --> 0:45:37.600
<v Speaker 1>you see. The company would end up suing both Roberts

0:45:37.719 --> 0:45:40.399
<v Speaker 1>and Taylor. They claimed that both of them had tried

0:45:40.440 --> 0:45:45.880
<v Speaker 1>to secure trade secrets belonging to game Streamers for themselves Essentially,

0:45:46.360 --> 0:45:50.880
<v Speaker 1>the allegation was that Timothy Roberts had registered domain names

0:45:50.960 --> 0:45:54.960
<v Speaker 1>and trademarks under his own name rather than under the

0:45:55.120 --> 0:45:58.120
<v Speaker 1>Game Streamers company name, and that he then planned on

0:45:58.200 --> 0:46:00.680
<v Speaker 1>using those same ideas in a business this that would

0:46:00.680 --> 0:46:05.240
<v Speaker 1>compete directly with game Streamers. The company also accused Roberts

0:46:05.239 --> 0:46:07.800
<v Speaker 1>of threatening them, saying that he was going to reveal

0:46:07.880 --> 0:46:11.640
<v Speaker 1>confidential company information that would ultimately harm the business. Now,

0:46:11.680 --> 0:46:16.600
<v Speaker 1>Taylor and Roberts countersued Game Streamers. They alleged, among other things,

0:46:16.760 --> 0:46:19.400
<v Speaker 1>that they were both being fired for game Streamers because

0:46:19.400 --> 0:46:23.200
<v Speaker 1>they refused to convert to Seventh day adventist. I am

0:46:23.239 --> 0:46:26.560
<v Speaker 1>not making any of that up. Ultimately, those lawsuits would

0:46:26.560 --> 0:46:28.560
<v Speaker 1>all settle out of court in two thousand eleven. But

0:46:28.760 --> 0:46:32.160
<v Speaker 1>our story ain't over yet, folks. Roberts and Taylor would

0:46:32.200 --> 0:46:34.680
<v Speaker 1>launch another business in two thousand eleven, and it was

0:46:34.719 --> 0:46:38.600
<v Speaker 1>called Savtira. It was billed as a cloud computing company,

0:46:38.760 --> 0:46:42.040
<v Speaker 1>and its name was a combination of Savva's. Remember that

0:46:42.160 --> 0:46:45.800
<v Speaker 1>was the first company Roberts had worked with, and in Tira,

0:46:45.920 --> 0:46:48.000
<v Speaker 1>which was that big failed company he had worked with,

0:46:48.080 --> 0:46:49.880
<v Speaker 1>Which makes me wonder if Roberts was running out of

0:46:49.920 --> 0:46:52.600
<v Speaker 1>ideas at this point to combine two names of previous

0:46:52.640 --> 0:46:56.319
<v Speaker 1>businesses into a third one, and it's height. Savtira had

0:46:56.360 --> 0:47:00.160
<v Speaker 1>a valuation of five hundred million dollars. But he is

0:47:00.200 --> 0:47:05.120
<v Speaker 1>the problem. It was actually worthless. In fact, Sevtira had

0:47:05.320 --> 0:47:08.600
<v Speaker 1>to declare bankruptcy in two thousand twelve and it went

0:47:08.600 --> 0:47:11.720
<v Speaker 1>into Chapter eleven, but then was forced into Chapter seven,

0:47:11.760 --> 0:47:15.680
<v Speaker 1>which means it was liquidated. A judge ordered all assets

0:47:15.920 --> 0:47:19.920
<v Speaker 1>liquidated to pay off creditors. Robertson Taylor had been selling

0:47:19.960 --> 0:47:23.040
<v Speaker 1>stock certificates for a company that simply could not conduct

0:47:23.080 --> 0:47:26.400
<v Speaker 1>business as was claimed, and this wasn't just bad news

0:47:26.400 --> 0:47:29.080
<v Speaker 1>to wealthy investors who were out of a big wad

0:47:29.120 --> 0:47:33.040
<v Speaker 1>of cash. Savtira's employees suffered as well. There were real

0:47:33.200 --> 0:47:35.640
<v Speaker 1>people who had been working for a company under the

0:47:35.680 --> 0:47:38.680
<v Speaker 1>belief that it was a legitimate business, but their paychecks

0:47:38.840 --> 0:47:41.879
<v Speaker 1>stopped as the company ran out of cash, and toward

0:47:41.960 --> 0:47:44.680
<v Speaker 1>the end, the company's bank account was at negative five

0:47:44.719 --> 0:47:46.799
<v Speaker 1>thousand dollars before they were able to secure at two

0:47:47.160 --> 0:47:50.680
<v Speaker 1>fifty thousand dollar alone. Allegedly, a good amount of that

0:47:50.760 --> 0:47:53.360
<v Speaker 1>loan would end up going to some personal expenses that

0:47:53.480 --> 0:47:56.959
<v Speaker 1>roberts had accumulated, rather than to actually pay off creditors

0:47:57.000 --> 0:48:01.319
<v Speaker 1>of the company. According to prosecutor, because yes, of course

0:48:01.360 --> 0:48:03.640
<v Speaker 1>this is going to end in another court case. It

0:48:03.680 --> 0:48:07.640
<v Speaker 1>was all based on false revenue projections. That's what the value,

0:48:07.760 --> 0:48:11.800
<v Speaker 1>the perceived value of this company was hinging upon. Robertson

0:48:11.800 --> 0:48:15.040
<v Speaker 1>Taylor would be arrested on charges that they committed wire fraud.

0:48:15.520 --> 0:48:19.279
<v Speaker 1>Roberts pled guilty or pleaded guilty, and his sentencing was

0:48:19.280 --> 0:48:22.040
<v Speaker 1>scheduled to happen in two thousand and seventeen, though as

0:48:22.120 --> 0:48:24.680
<v Speaker 1>of the recording of this podcast, that still hasn't happened.

0:48:24.719 --> 0:48:28.279
<v Speaker 1>It may happen sometime in mid March. Last I heard, Uh.

0:48:28.520 --> 0:48:32.200
<v Speaker 1>He faces up to twenty years in prison. His buddy

0:48:32.480 --> 0:48:36.480
<v Speaker 1>Terrence Taylor, also pleaded guilty to wire fraud charges, and

0:48:36.600 --> 0:48:40.160
<v Speaker 1>he was recently sentenced to five years in prison back

0:48:40.200 --> 0:48:43.359
<v Speaker 1>in December two thousand seventeen. Now, there's a lot more

0:48:43.360 --> 0:48:46.279
<v Speaker 1>I could say about roberts For example, he also led

0:48:46.280 --> 0:48:50.000
<v Speaker 1>a company called hashing Space, which is a bitcoin minor

0:48:50.120 --> 0:48:54.560
<v Speaker 1>hosting service. Terrence Taylor was the CFO over there too,

0:48:54.760 --> 0:48:58.280
<v Speaker 1>but after the Feds served a six count indictment against

0:48:58.280 --> 0:49:01.400
<v Speaker 1>the two guys, they both up down from that company.

0:49:01.520 --> 0:49:07.160
<v Speaker 1>Hashing Space continued on buying out Roberts's ownership of the company. Anyway,

0:49:07.400 --> 0:49:10.759
<v Speaker 1>that's the story of Timothy Roberts and the Phantom Console,

0:49:11.120 --> 0:49:15.160
<v Speaker 1>and I want a cookie. I do not know to

0:49:15.280 --> 0:49:17.920
<v Speaker 1>this day whether or not the Phantom Console was ever

0:49:17.960 --> 0:49:21.040
<v Speaker 1>sincerely going to be built, or if in fact it

0:49:21.120 --> 0:49:25.080
<v Speaker 1>was just a shell so that Timothy Roberts could raise

0:49:25.120 --> 0:49:27.880
<v Speaker 1>a lot of money from investors and then spend it

0:49:28.239 --> 0:49:31.200
<v Speaker 1>however he liked. I don't know the answer to that.

0:49:32.040 --> 0:49:33.839
<v Speaker 1>There are a lot of indications that showed that there

0:49:33.840 --> 0:49:37.880
<v Speaker 1>were at least some cursory attempts to create some hardware,

0:49:37.920 --> 0:49:40.520
<v Speaker 1>and I'm sure people who are working for the Phantom

0:49:40.560 --> 0:49:44.280
<v Speaker 1>are for Infinium Labs and then later Phantom Entertainment believed

0:49:44.280 --> 0:49:46.200
<v Speaker 1>in their heart of hearts that they were working on

0:49:46.239 --> 0:49:49.080
<v Speaker 1>a product that was going to go to market. But

0:49:50.080 --> 0:49:53.320
<v Speaker 1>whether it was a sincere attempt or just a hoax

0:49:53.400 --> 0:49:57.320
<v Speaker 1>from the beginning, the fact remains it never went anywhere,

0:49:57.719 --> 0:49:59.799
<v Speaker 1>and it became kind of the laughing stock. It was

0:49:59.800 --> 0:50:02.719
<v Speaker 1>one of those things that was held up as not

0:50:02.800 --> 0:50:06.040
<v Speaker 1>just something that to ridicule, but something to show as

0:50:06.080 --> 0:50:09.520
<v Speaker 1>an example of what can happen with Vaporwar, so an

0:50:09.520 --> 0:50:13.520
<v Speaker 1>incredible story, and uh, maybe we'll follow up on this

0:50:13.719 --> 0:50:16.640
<v Speaker 1>later on and talk more about some of the fallout

0:50:16.680 --> 0:50:18.480
<v Speaker 1>and also some of the things that have happened in

0:50:18.520 --> 0:50:22.319
<v Speaker 1>the wake of the Phantom console that brought some of

0:50:22.360 --> 0:50:26.160
<v Speaker 1>those ideas to life. Like I said, while those ideas

0:50:26.160 --> 0:50:28.480
<v Speaker 1>were way ahead of their time, they are ones that

0:50:28.520 --> 0:50:32.160
<v Speaker 1>have found their ways into various game platforms today, whether

0:50:32.200 --> 0:50:36.799
<v Speaker 1>it's PC based stuff like Steam or it's video game consoles.

0:50:37.800 --> 0:50:42.920
<v Speaker 1>We've seen those concepts worked into video gaming. So there

0:50:42.960 --> 0:50:46.080
<v Speaker 1>were some really good ideas there. If they had been

0:50:46.640 --> 0:50:50.200
<v Speaker 1>executed properly, maybe the landscape of gaming would be very

0:50:50.200 --> 0:50:53.840
<v Speaker 1>different today. Maybe in Phinium Labs would be the valve

0:50:54.600 --> 0:50:57.880
<v Speaker 1>of today where they'd be the dominant player in PC

0:50:58.080 --> 0:51:04.839
<v Speaker 1>gaming distribution. But as it stands, not so much. As

0:51:04.880 --> 0:51:08.040
<v Speaker 1>for Phantom Entertainment, I honestly don't know if they're still

0:51:08.040 --> 0:51:10.960
<v Speaker 1>an operation or not. The website still up though, so

0:51:11.000 --> 0:51:13.560
<v Speaker 1>you can go check that out. If you guys have

0:51:13.600 --> 0:51:17.800
<v Speaker 1>any suggestions for future topics I should tackle on this show,

0:51:18.000 --> 0:51:19.719
<v Speaker 1>let me know. You can send me an email the

0:51:19.719 --> 0:51:23.160
<v Speaker 1>addresses tech Stuff at how stuff works dot com, or

0:51:23.200 --> 0:51:25.520
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0:51:25.920 --> 0:51:27.799
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0:51:27.840 --> 0:51:30.759
<v Speaker 1>Stuff hs W. We have an Instagram account. Make sure

0:51:30.760 --> 0:51:34.640
<v Speaker 1>you follow us over there. And remember I live stream

0:51:34.719 --> 0:51:37.880
<v Speaker 1>recordings of tech stuff on Wednesdays and Fridays over at

0:51:37.920 --> 0:51:41.160
<v Speaker 1>twitch dot tv slash tech stuff, So just head over there.

0:51:41.160 --> 0:51:43.640
<v Speaker 1>You'll see the schedule printed there, and you can join

0:51:43.719 --> 0:51:46.880
<v Speaker 1>me and chat in the chat room, and I'll chat

0:51:46.960 --> 0:51:49.200
<v Speaker 1>back at you whenever I get a chance, which is

0:51:49.280 --> 0:51:51.920
<v Speaker 1>usually during the ad breaks and we have a good

0:51:51.920 --> 0:51:54.120
<v Speaker 1>old time. I'd love to see you there and I'll

0:51:54.160 --> 0:52:04.120
<v Speaker 1>talk to you guys again really soon. For moralness and

0:52:04.200 --> 0:52:11.800
<v Speaker 1>thousands of other topics is at how stuff works dot com.

0:52:12.239 --> 0:52:12.279
<v Speaker 1>W