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Crowdsourcing: Kickstarter, Crowd-funding, and You

Posted by Kenny (more from this author)
Thursday, March 15, 2012 - 11:19 am (EDT)
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There's been a lot of buzz lately about Tim Schafer's new Double Fine project hitting $3 million on Kickstarter lately. Other companies are beginning to take notice and to start their own Kickstarter projects as well. But there are some lingering questions about the crowd-funded approach that no one seems to be asking.

 

First off, crowd publishing may be new now, but what happens if it suddenly becomes the norm? Let's say EA decides they want to try to launch a new IP, or Ubisoft finally decides to stop holding "Beyond Good and Evil 2" hostage by making us buy "Rayman Origins." Who's to say that crowd-funding won't suddenly become mandatory to get a game project off the ground? If it somehow does become the norm for game development, imagine how lucrative this would be for a business. A crowd-funded project from a major publisher would get the following:

1. Initial funding from Kickstarter.

2. Released product sales.

3. Day 1 DLC to incentivize #2.

4. Further-down-the-line DLC to expand the game  and the playerbase. 

5. Sequels could potentially repeat steps 1-4. 

If Activision decided to do this for a new Call of Duty side property (Infinity Ward's mysterious cancelled sci fi project, anyone?), would this kill crowdfunding or just conventional game publishing? Considering the ludicrous current expectations to get a new IP off the ground (A game under budget with a dedicated and wide playerbase that would be "exploitable" (Bobby Kotick's words, not mine) over many years is the exception and not the norm), this could make us pay even more for our video games. Think $60 bucks a game now is silly? Imagine the number going up ten, the DLC being hiked 20% and adjusted for inflation, and now this crowd-funding scheme. You'd be paying:

$25-$30 for the initial Kickstarter.

$60 at retail.

$15-$20 multiple times post-retail for DLC content.

This would add to around $110 per game, per customer! Add that to state and federal sales tax and you'll probably get marked up another $7-$12! That's insane! Imagine how expensive hardcore gaming would get. If a typical gamer gets 2-3 games a year, the costs will certainly add up for people who get in on the crowdsourcing scheme. Obviously, not every customer would do a "buy-in" on every project, but it certainly goes to illustrate how expensive games are getting nowadays. 

But onto my second point. Crowdfunding projects may be a sweet proposition for getting less-well known projects on the table now, but if they become the norm, who's to say that major publishers couldn't co-opt such a system and control which projects get onto these sites? Imagine if a bigger company acquired Kickstarter or any other major site. Or what if Kickstarter itself began to pick and choose projects to allow onto the site to be funded. Unless the maker of the game is already industry-established or a well known auteur like Hideo Kojima, attempting to get a crowd-funded project going with more competition in the Kickstarter market could very well stifle the very innovation we are attempting to stimulate!

So, what do you think? Am I talking out of my ass or is there a legitimate problem with the existing system of crowd-funding as it's currently developing?

categories: crowdsourcing, crowdfunding, activision, bobby, kotick, kickstarter, tim, schafer, christian, allen

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Comments

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vecima said:

Interesting read... I'm headin to bed now, so I'll respond (and fix your embedded video and font color) tomorrow.

but I will leave you with this... you might be seeing a Type 3 project hit kickstarter at some point.... I'll have more info on the forums soon.

Tuesday, March 20, 2012 - 12:19 am (EDT) login to reply

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vecima said:

Now for a propper response.

I don't think crowd sourcing will turn into a problem for consumers.  Most crowd sourced projects entitle contributors to access to, or a copy of, the project once it's complete, which sort of negates the idea that you'll be paying over and over again.  If major publishers wanted to enter the crowd source space, I doubt they would convince many people to pay for a game in advance of it even being developed, and then pay again when the game is finished.  I can see them doing a pre-order deal that means they get some of the money for development up front, but people aren't going to double pay twice if they don't have to.

I just don't see this as a model that the big publishers can really come in and ruin.  And even if they tried, and say, bought out Kickstarter, then another honest-to-goodness crowd sourcing site would pop up.  Or people would roll thier own - Wolfire has been doing this for some time now with their game "Overgrowth"(Which looks great, btw)

I feel like I should also point out what has always been my stance: Be a responsible consumer.  If you don't feel that something is worth the price asked, then don't buy it.  If you feel that publishers and/or developers are taking the games industry in a direction you don't agree with, then don't support them with your money.  I skipped Mass Effect 3 and still have not played Assassins Creed Revelations for this very reason.  Those are two of my favorite franchises from this generation, but with both I've had to bow out due to not agreeing with the decisions of the publishers.

Monday, March 26, 2012 - 12:11 am (EDT) login to reply

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vecima said:

blah

Tuesday, August 4, 2015 - 9:41 pm (EDT) login to reply

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