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Kickstarter's Problem: You Have To Make the Game Before You Ask For Money

An anonymous reader writes with this piece about Digital Knights, the studio behind the Kickstarter campaign project Sienna Storm, which was cancelled this week after the team raised only 10% of their $180,000 target, despite a compelling concept (a card based espionage game) and a reputable team including the writer of the original Deus Ex, Sheldon Pacotti. The team is now seeking alternative funding before reaching out to publishers, but in an interview given this week, Knights CEO Sergei Filipov highlights what he sees as a recent and growing problem with crowdfunding games: an expectation to see a working prototype. "It seems at least 50 or 60 percent of the game needs to be completed before one launches a campaign on Kickstarter," he says. It's a chicken and egg cycle some indie developers will struggle to break out of, and shows just how far we've come since Tim Schafer's Double Fine Adventure Kickstarter burst the doors open two years ago.

31 of 215 comments (clear)

  1. Kickstarter's Problem by Anonymous Coward · · Score: 2, Insightful

    You get nothing, and are owed nothing, from the people you give money to.

    1. Re:Kickstarter's Problem by halivar · · Score: 5, Informative

      Not true. From the KS TOS:

      Project Creators are required to fulfill all rewards of their successful fundraising campaigns or refund any Backer whose reward they do not or cannot fulfill.

      And from the FAQ:

      Is a creator legally obligated to fulfill the promises of their project?
      Yes. Kickstarter's Terms of Use require creators to fulfill all rewards of their project or refund any backer whose reward they do not or cannot fulfill. (This is what creators see before they launch.) This information can serve as a basis for legal recourse if a creator doesn't fulfill their promises. We hope that backers will consider using this provision only in cases where they feel that a creator has not made a good faith effort to complete the project and fulfill.

    2. Re:Kickstarter's Problem by macdude22 · · Score: 5, Interesting

      What kickstarter says and their actions are two different things. I'm having an issue where a company (a somwhat large board game company using kickstarter for preorderes) has not delivered the promised rewards or a refund. I reached out to kickstarter for clarification on these specific terms. After some back and forth where kickstarter kept dodging my questions they finally stated

      Kickstarter Support (Kickstarter)
      Aug 20 10:37
      Alexander,
      Thanks for writing in. Unfortunately I'm unable to comment further on our terms, as it is a standalone documentation of our policies.
      Regards,
      Alfie

      I don't even know what that means. Short of it, kickstarter doesn't actually follow through with their terms and are unwilling to clarify any part of them.

    3. Re:Kickstarter's Problem by gbjbaanb · · Score: 2

      ok, then Kickstarter's problem is that it doesn't strongly enforce these terms.

      If some of the founder projects who basically hopped off with the cash were brought before court and made to explain where all the money was in a fraud case, then we'd probably have a lot more people ready to trust KS. As it is, I don't think anyone has been fully refunded for projects that failed. Maybe KS is expecting the backers to go legal themselves, but I see it as KSs responsibility - they do the leg work (and take the fee) so they should be much more involved in all these projects.

    4. Re:Kickstarter's Problem by Anrego · · Score: 2

      Yeah yeah, that takes care of the obligatory reminder that funding something on kickstarter isn't the same as buying it at a store..

      Maybe some people don't get that, but I for one back projects knowing full well that it's a gamble, and I've been pretty lucky.

    5. Re:Kickstarter's Problem by macdude22 · · Score: 2

      I think it is realistic when they forgot a stack of backers and sent the rest of product to retail.

  2. Bummer by the_l3pr3chaun · · Score: 2

    That seems like a bummer. I guess to many people feel they are getting ripped off to much to be willing to take a chance.

    1. Re:Bummer by Beck_Neard · · Score: 2

      There is a very small proportion of ideas for which crowdfunding is a good thing. These are ideas that are really great but have not been able to attract funding because investors (mistakenly) didn't see their potential.

      Ideas like that only comprise 1%, at most, of all kickstarter projects. The vast majority are either incredibly dumb or the creators have not made the effort to find funding and just went straight to kickstarter.

      As for OP, though, it doesn't matter to me whether 50% or 100% or 0% of the project has already been done. What I want to see is the potential for it to get done. I want to see credentials and a plausible story for why they're on kickstarter, not a feel-good video with shots of the creator's kids ('give me money, I have to support my children!') set to strumming guitar music.

      --
      A fool and his hard drive are soon parted.
  3. Actually a good thing. by BarbaraHudson · · Score: 5, Insightful

    This requires would-be developers to have significant skin already in the game (pardon the pun) in terms of time and resources invested. Better than "I have an idea, now give me money and I'll eventually build it for ya." Or all those similar-talking losers on Shark Tank and Dragons Den who think and idea with nothing else is worth big bucks.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    1. Re:Actually a good thing. by nnull · · Score: 2

      Yes and no. Would Elite: Dangerous come out if it didn't get that amount of funding? The game is already turning out to be amazing and they didn't have anything other than some video interviews to start with when they made their Kickstarter campaign. There's a risk to investment, take a chance.

      A lot of the industry wouldn't exist if people didn't take risks. A lot of ideas can be pretty expensive and out of reach for a single person to make possible, even to demo or make a mockup. This risk aversion in the US (especially) right now is turning the industry backwards and killing us, when we need more investment in the industry. Yeah, there maybe con-artists and/or cancellation because of lack of funds, but that's what risk is about.

    2. Re:Actually a good thing. by Kjella · · Score: 3, Interesting

      Well, if you want Kickstarter to be your go-no go decision maker then you can't wait so long you're already pot committed, as they'd say at the poker table. If you're half finished and your Kickstarter fails, what do you do? Throw away all that work and start over on something else? Try to salvage it and publish something, even if it has lackluster appeal? Not to mention then you must go it alone, if you already know you can finish it alone do you really need Kickstarter? My impression is that Kickstarter works best when your "selling points" aren't your product but your reputation and history. I donated fairly big to the Musopen project because there was quite a bit of history to show that yes, they're serious about creating free music but lacked the funds to do it. I'd be very weary of people with just photoshop and powerpoint skills.

      --
      Live today, because you never know what tomorrow brings
    3. Re:Actually a good thing. by Altrag · · Score: 3, Interesting

      Where it can fill in the gaps is when you have a product (say a game, since that's what I'm usually most interested in) and are nearing production and suddenly you need:
      a) Hosting services for downloadables.
      b) Production services if you plan to make hard copies of the game, merchandise to go with it, etc.
      c) Possibly most important: Visibility.

      It can also help if you're a good designer but perhaps a crappy artist. You can build your game with clip art and cube models or whatever and then try to get the funds to hire a proper artist to flesh the game out as you're nearing completion.

      There's plenty of points during a game's development cycle where a sudden (comparatively) large influx of cash can push it past a milestone that the developer wouldn't have been able to manage on their own (or would have taken them significantly longer to do so.)

      Not to mention KS's for silly things like a nifty T-Shirt design or whatever where the idea actually is pretty much 100% of the project -- its not hard to get silkscreening done if you've got a picture and a few hundred/thousand dollars.

      As for what the devs do if the KS fails.. depends on the dev. If they're mostly business people they may cut their losses and try something new. If they're creating a labor of love they'll probably try and push through it on their own. In both cases they may try to find other sources of income if they really believe in their idea and think that KS is just stupid for not trusting them. Everyone's reaction to a failed KS will be different I'm sure.

    4. Re:Actually a good thing. by machineghost · · Score: 2

      From Google, the definition of "investment" is:

      "the action or process of investing money for profit or material result."

      With Kickstarter you invest money for a material result (the rewards). Seems like an investment to me.

    5. Re:Actually a good thing. by BarbaraHudson · · Score: 3, Insightful

      There are ways out of this. The first is to find one or more partners who have the necessary skills to develop the prototype with him, in return for equity. Not willing to give up equity? Then too bad? Can't convince devs that your idea is not that great/unique/compelling (because we've ALL heard variants of this "my idea is SO great - all you have to do is code it and we'll be rich" bullsh*t)? Again, too bad.

      The real "way out of this" is to realize that, since he doesn't have the necessary skills, he either has to acquire them or give up. Not willing to take the years necessary to acquire them? Like the old saying goes, "The will to succeed isn't as important as the will to plan to succeed." Not having a plan that takes the obvious potential obstacles such as the ones you cited into account is a pretty good indicator that you're not the one to invest in. After all, ultimately, people invest in people, not products. The product won't complete itself. You can't hold an incomplete product accountable. You hold the people behind it accountable.

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    6. Re:Actually a good thing. by Iori+Branford · · Score: 2

      What would be the alternative? is there a way out of this?

      But the dude has no development skills

      Well there you go. Do something about that and just try to prototype it. Not the whole complex strategy MMO thing, of course, just plain old offline strategy with bare minimum of spacecraft/planets/mechanics/skills to be semi-unique/interesting/challenging, saving the rest of the content for the full game / expansion / sequel.

  4. Yeah, so? by realmolo · · Score: 4, Insightful

    You *should* have a working prototype before you expect to get money.

    Yes, it's difficult to build a prototype when you don't have funds. Welcome to the Real World, asshole. It's not easy to produce/market a new product. Kickstarter has made it *easier*, but it's not a magic bullet. It briefly *was* a magic bullet before people got smart and realized that giving money away for something that has almost no chance of ever being a real product was silly.

    1. Re:Yeah, so? by i+kan+reed · · Score: 2

      And honestly, complaints like this one show a poor knowledge of how long software actually takes to develop. A vertical slice of a game good enough to base a trailer on is much much closer to 10 or 20% than 50% or 60% of the total effort.

    2. Re:Yeah, so? by Charliemopps · · Score: 4, Informative

      I agree with you. And given that they're making a card game all they need for a working prototype is a printer. I don't see what the problem is. In fact, there are plenty of websites you can go to and have professional cards/boards, etc made...
      One example I've used: https://www.thegamecrafter.com...

      If you don't have any sort of demo, you haven't put in enough work to get my money.

  5. How about you risk your own money instead... by Anonymous Coward · · Score: 2, Insightful

    Perhaps people are wise to the Kickstarter business model of "heads we win and take all the profit when we sell out, tails you lose and cover our losses if it flops" and are unwilling to provide handouts for these people to use to run off and make their (in some cases, additional) fortune.

  6. Double Fine is a bad example. by timrod · · Score: 5, Informative

    With Double Fine, there's a lot of questions about how the money was spent - many of which have gone unanswered. For instance, Tim Schaefer initially said he would need $400,000 to make a full game. Granted, he arrived at that number using numbers from games he made in the early 90s, but then it spiralled out of control into a $3.3 million project. The numbers he HAS released show that he spent almost the entire initial amount - $400,000 - on "backer rewards".

    The $3.3 million barely covered the first half of the game, and that was on top of another few million in crowdfunding that Schaefer did shortly before release date. They still don't have a released date set for the second half, other than "We're working on it and it might be out by the end of the year."

    1. Re:Double Fine is a bad example. by macdude22 · · Score: 2

      Well after the influx of money the scope of the project spiraled out of control. I think the Double Fine situation is indicative of how having your budget increased 10 fold doesn't negate the need for a quality project manager.

    2. Re:Double Fine is a bad example. by Legendary+Teeth · · Score: 2

      People always forget that Double Fine kickstarted a Documentary about game development. The main pitch was to see everything behind the scenes about game dev that you never hear about otherwise. They didn't even have an idea for what the game was really going to be when they started, just that it would be an old school adventure. They explicitly said it may fail horribly or be a shitty game, but at least you'll be able to see how it happened.

      So sure, "$400k" might have been enough to fund the documentary and some game, but when they piled on all that extra money of course they were going to find ways to use it.

      Once that went gangbusters and everyone realized that you could kickstart the actual GAME instead of this crazy hedging-on-a-documentary pitch DF had to start with, it opened the floodgates for all the games being kickstarted now.

      Double Fine is doing exactly what they promised.

    3. Re:Double Fine is a bad example. by Darinbob · · Score: 2

      The question is do you treat Kickstarter as just a pre-pre-pre-order for a game you want, or do you treat it as investing in a product? For Double Fine I think many of those backers were indeed investing in the game: they wanted this sort of game to make a revival. Any investor in software knows the risks of costs spiraling out of control.

      You shoudn't need a prototype, that's not what Kickstarter is about. So what if no one wanted Sienna Storm, that doesn't point to a problem with Kickstarter but just says that not enough people wanted that game. Maybe their marketing was badly flawed, maybe the concept wasn't want people wanted, but ultimately they rolled the dice and lost. It happens.

      The game I was a kickstarter on is coming out later this year and it looks to be doing well, matching the promises, and despite being from an actual company it wouldn't have gotten off the ground without kickstarter (and it's not wasteland 2, but I'm looking forward to that too). The point is to bypass the traditional model where some big money game maker that everyone hates gets to decide what games are made by the development houses, or to allow the small development house to make a game in their own name and get top billing, or to try and make a niche game.

  7. Try Kickstarting A Novel by __aaclcg7560 · · Score: 2

    I'm always amused when wanna-be novelists want people to give them $50,000 to write a novel in a year and discover that no one will give them money. The novel must be written first. Kickstarter is useful for getting ~$3,000 to pay for editing and publishing the novel, especially if the writer already have an established fan base.

  8. Re: a reputable team by gbjbaanb · · Score: 2

    I guess many people don't recognise anyone's name except for a couple of really high-profile guys like Braben, Molineux or Carmack.

    http://rtf.utexas.edu/faculty/...

    He's not a complete duffer though, seems he has done stuff. That seems fair enough to me, even though I would like to see credit given for the rest of the team behind those games.

  9. Ya well by Sycraft-fu · · Score: 3, Insightful

    If you aren't a known developer, people want to see some evidence that you have the ability to make good on your plans. Game development isn't simple, and many people are not prepared for what they are going to have to do to bring a successful game to market.

    So Doublefine or inXile can get a good bit of funding with nothing but a design doc for a game because people have faith they'll be able to deliver since they are experienced game devs. New crews are going to have to show something to get people to trust them.

    Particularly in light of past KS failures in that regard. I've backed a number of games on KS and two of them I knew were fairly high risk: They were being done by an individual who hadn't done a game before, and there wasn't any sort of demo up front, just some basic concepts. I decided to take a risk on it, but fully understood that failure was likely.

    Sure enough, both are floundering/failing. One hasn't had any updates in months, the other does update periodically but it is still extremely rudimentary, despite being way past the planned launch date, and it is pretty clear the dev just doesn't have a good idea how to proceed from here.

    On the flip side, the games by established studios have either delivered or are well on track (Shadowrun Returns was brilliant, Wasteland 2 ships next Friday, Pillars of Eternity is in beta, etc). Likewise the indy titles that had a demo and were a good bit along with development have delivered, like FTL.

    So no surprise many people aren't willing to take the risk. They want a better chance of return so they stick with established devs or with things that have some proof.

  10. Crowdfunding has jumped the shark by MrEricSir · · Score: 3, Interesting

    Kickstarter barely cares what you try to fund anymore, and the other sites are even worse. It doesn't matter if your project clearly violates copyright laws -- or even the laws of physics -- you can post any project you want. This makes the entire crowdfunding ecosystem look incredibly shady.

    That said, this has led to some pretty funny stuff over at Kickfailure.

    --
    There's no -1 for "I don't get it."
  11. Re:Star Citizen and Elite Dangerous did fine by petermgreen · · Score: 2

    Star Citizen and Elite Dangerous did fine on KickStarter back when they were still using it. Eventually both stopped using KickStarter and started using their own methods.

    Well kickstarter campaigns are limited length, so it's natural that after a successful campaign a group would switch to their own methods of taking preorders.

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  12. An excellent prototype is all that is needed... by QuietLagoon · · Score: 2

    As evidenced by this.

  13. thank you gift is product by globaljustin · · Score: 2

    most kickstarters that I've seen get big money, like the iPod dock & blender/boombox/coolerwere recursive projects...the 'thank you' gift is the product that the company you're supporting is trying to make

    it's silly...but i'm glad kickstarter and the like exist...they should just adapt their message & rules just a bit to make this weird moebius strip of commerce and charity unnecessary

    as far as gaming, if people want to donate money to an idea, screenshot, and prayer then I think they should be able to...

    fyi, that ipod dock kickstarter i linked to above is an insane roller coaster & exhibit A of how kickstarter can be good and bad...the guy ended up barely breaking even after a new ipod design came out right during his production and he had to do several recalls...it was a disaster...

    IMHO the Elevation Dock is an example of...something...i'm not hating but it's obvious most of these kickstarter millionaires have no clue what they are doing & spend more time on pictures and the video than product design at times...but that's my jealousy. If people want to throw money away for questionable 'innovations' then that's their choice...the system exists, not all kickstarter products will be crap

    --
    Thank you Dave Raggett
  14. It's not "free money" by Tyr07 · · Score: 2

    There is nothing that is actually free. Yeah, a lot of people are going to have to show how serious they are by investing their own time and money into it first.

    You can't get it risk free by doing kick starter and expect everyone else will absorb the risk.
    I think the idea for kick starter is that you come up with something fantastic, you then start working on it.

    You got this cool prototype that has a lot of potential, but you want to make it soar. To do that, you'll need funding for wages, to pay for your
    expenses while you devote time to it, for licenses, for materials if it's not digital, for equipment to make it. Then you hit up kick starters.

    If your ideas were fantastic enough to have absolutely nothing but an idea written on paper that will get you funding, you'd hit up a developer / corporation
    who is willing to fund you.

    Also, maybe a lot of people didn't think the concept was as good as you thought it was, and that people wanted to take that chance on it.