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Valve's Newell On Community-Funded Games

Modern games are extremely expensive to make. High-profile, AAA titles have budgets in the tens of millions, and even the smaller, independent titles can cost hundreds of thousands of dollars to make. Couple this with development times that frequently reach three or four years and you have publishers who are very shy about investing in new projects, particularly for unproven IPs. Valve co-founder Gabe Newell recently spoke about a new way of funding such games: "There's a huge amount of risk associated with those dollars and decisions have to be incredibly conservative. What I think would be much better would be if the community could finance the games. In other words, 'Hey, I really like this idea you have. I'll be an early investor in that and, as a result, at a later point I may make a return on that product, but I'll also get a copy of that game.'" Such a system would certainly relieve some of the pressure to stick with tried-and-true concepts (and possibly get management to grant a little more leeway with deadlines and resources), and it would make the video game industry more of a meritocracy than it already is.

5 of 176 comments (clear)

  1. Re:Then open it up by rumith · · Score: 4, Insightful

    I think that what Gabe suggests is quite reasonable, to say the least. People do pay for games right now, even those that they play once and those that won't be available for their multi-Cell watchphone in 15 years. Think of it as an early preorder method. Think of it as of a way of listening to customers instead of PHBs. After all, if people pay the devs for the right to tell them what kind of a game they want to play when it's done, it is good. Besides, this will even massively boost sales to those who didn't invest early (because the game is more likely to be good/popular).

  2. Gamers can be demanding by pwilli · · Score: 5, Insightful

    If I were a game developer, the last person I would like to be financially dependent on would be the "gamer".

    "Why is developement taking so loooong? I want the game now!"
    "You want to cut out that cool-sounding feature to be able to finish the development (in time)? No way!"
    "Look, game studio XYZ makes the same game, but better - I'm outta here!"
    "I think I heard that the game might not be 100% exactly what I thought I wanted, so I told everybody I know to not to give you any money, ever!"
    "I f*cking paid for the development, why aren't you doing it the way I want!?!"

    Although publishers tend to screw some game developement up with uber-tight schedules and other unrealistic demands, they will at least not destroy "their" product with bad press or force development to go on and on and on (till THE game "to rule 'em all" is produced), just because they feel like it.

  3. Re:Requirements? by Kreigaffe · · Score: 5, Insightful

    With that list of demands, I'd make a large wager that you'll never invest in any sort of game development. Request changes? So you know better what a nebulous idea of a game will need better than the developer? Why don't you just go make it yourself, then?
    Mass-sourced funding like this is banked on the fact that the people buying in have some level of trust that the game dev is going to make a good game. If you don't believe that, you're not going to give them money, no matter what concessions they make. Large investors changing games just because they're funding them... that's exactly why people dislike big players like EA so much, because they'll buy out a small studio and then dictate how they make their games.

    --
    ... still waiting for this free-as-in-beer free beer I keep hearing about. :|
  4. Re:Then open it up by Tom · · Score: 4, Insightful

    The only downside to your idea is that it's been tried (by Stephen King, no less) and found to be lacking.

    People who enjoy getting something for free don't pay for getting the next installment. Not in big enough numbers for a book - see the problem with financing a TV show this way?

    --
    Assorted stuff I do sometimes: Lemuria.org
  5. Re:Then open it up by omega_dk · · Score: 4, Insightful

    Why do you assume the game has to be public domain at the end? Couldn't you just assume it is shared property of a corporation-like entity comprised of those that funded the game? After all, there's always the sequel, and why not share some of the profits from selling the game with those that funded its creation?

    --
    Just because you don't like the truth, does not make it false.