You might want to check at least wikipedia article about them. Technology that they made, from the beginning, was already aligned with geo mapping business: Euclideon - Wikipedia
This specific approach has it pros and cons, there are other solutions on the market to visualize point cloud data, this is not the best or the only one.
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“was already aligned width geo mapping”, what do you mean? The indexing idea behind this, is the whole reason for the performance gain …
Either way, their technology is beneficial. I don’t think that scammers make stuff that is of actual use. Also, one simple couldn’t ask for some government grant of a whooping 2 million like: Hey, geo mapping fast indexing here! Gaming rules now! Master race heil! Please, give us $2 million!
I don’t think it’s that simple.
I don’t know if they marketed it for gamedev, simply to get a government grant (check the same article) or they were simply not aware about all the technical troubles that have to be solved to make viable technology. You can draw your own conclusion but simplest answer is quite obvious.
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And that simple answer would be what? That they are just scammers, or that they underestimated the technical challenges? And even if they did underestimate the problems. Well, welcome to science. And in science you have to dig into every corner before you may find something useful, yet alone something world changing. Not all people are John Carmack grade genius, and can avoid problems before they even happened.
My own point of view is simple on this. It looks interesting what they do, and they make an ambitious impression. More importantly, they also already made something useful. So I just wait and see.
In the article that I read, the Dell thing dude, was quoted having said that the animation is done to 80%. However, 80% is a lot already. So I guess it won’t take long until we are actual going to see something demonstrated in 2016.