On The Need For New Videogame Funding Models

Thanks to Costik.com for pointing to entrepreneur Gordon Gould's comments on possible new videogame funding avenues, as he notes "the coming console shift to Xbox 2 and the Playstation 3 is going to once again raise the bar on development costs", meaning "a shrinking number of titles per publisher slate w/increased pressure on those titles to be out of the ballpark blockbusters." He suggests that "developers' ability to gain more control over their destiny is handicapped by the relative scarcity of funding sources", but this may be changing, as investors from outside the industry start to fund development (as seen recently at MMO creator Turbine.) However, Greg Costikyan weighs in with a response, arguing that "...even looking at something as goofy and hit-driven as the game industry, an investor is already taking a big risk, and his or her instinct is going to be the same as the publishers': be conservative in what you fund."