A large part of the money problems was Rick Eddleman, Warren's brother-in-law. Read about it
here. Essentially, it says:
"Rick Eddleman, former vice president of finance for Decipher Inc., pled guilty to 12 counts of embezzlement in Virginia Circuit Court Monday. Eddleman, who had direct control over the game company's finances and financial records for nine years, faces a maximum sentence of 12 years in prison.
According to the Virginian-Pilot, Eddleman paid himself double his salary, "loaned" himself money from the company (which was never repaid), and wrote checks to his wife and children. Decipher President Cindy Thornburg said that Eddleman's actions contributed to several rounds of layoffs with the company that resulted in 90 employees losing their jobs in 2005 and resulted in Decipher writing off $8.9 million in losses. In March 2008, a judge ordered Eddleman to pay that same amount to Decipher."
The money problems were a the start of the snowball effect. They didn't have money, they couldn't afford as many designers. They didn't have the liquidity that cash provides, they couldn't renew licenses. They didn't have cash available to pay printers, they couldn't get the cards sent to them from the printers to sell to you and I.