How Fan Funding Is Changing The Gaming Industry

Published on:

Recently the gaming industry was struck by a new trend: fan-funding. Here's why not only indie studies but also big players like Sony & make use of this investment type:

If you’ve been on the internet in the last 5 years, you’ve heard of crowdfunding. Sites like Kickstarter and Indiegogo can help you raise money for everything from film equipment to the ingredients for a potato salad—but where fan-funding sites have really made a splash, is the gaming industry. Whether it’s a long-awaited sequel, a spiritual successor, or a completely new intellectual property, fan-funding is a big deal and it’s here to stay. Here’s what a London app developer has to say about fan funding.

Fan Funding Brings Independence

Once upon a time, partnering with a big-time publisher was one of the few chances an indie developer had to hit it big. Being backed by a corporation meant a bigger budget and a bigger release, but it also meant being pressured by investors, beholden to deadlines, and vulnerable to the fickle whims of AAA publishers. But with crowdfunding, studios can eliminate the middle man and work outside the publisher system. The only people paying for the game, are the people who are actually going to play the game.

There are, of course, exceptions. At E3 2015, legendary game director Yu Suzuki made a surprise appearance at the Sony press conference to announce the Kickstarter for the long anticipated Shenmue 3. There were many happy tears shed for the return of Ryo, but people were confused—a multi-billion-dollar company like Sony has no reason to ask for money from fans. But the impetus is simple, with the most recent Shenmue released in 2001, Sony can’t reasonably put their full weight behind the next installment of a 14-year-old game. So, they used Kickstarter as a way to test the waters and gauge the public interest while making a little extra money (6.3 million, to be exact).

It’s Not About Scamming Gamers

Some gamers see this practice as dishonest. Allowing developers who have corporate backing to ask for money before divulging the nature of their relationship with publishers can seem like a quick and easy way to scam gamers out of extra cash. In order to combat the potential for mistrust, some studios, like Lab Zero Games, who recently used Indiegogo to fund their game Indivisibile, have decided to be candid about the involvement of big publishers in the development process. Specifically, Lab Zero disclosed exactly how much money and support they would be receiving from 505 Games (a mid-size publisher which has big-hitters like Payday 2, Terarria, and Brothers under it’s belt) if they reached their initial funding goal.

Games Without Compromises

Most importantly, crowdfunding encourages evolution. With the list of gamer’s demands growing longer and more complicated by the day, the cost of making a game has become a daunting exponential upward curve. Not to mention, the standard price point of a console game in the United States has been set at $60—which, along with the rising cost of development, is a price that has become increasingly unsustainable even for big publishers. AAA titles and sequels sound like big bucks to investors, so big publishers are obligated to focus on what’s popular in gaming right now, leaving innovation up to indie developers. With crowdfunding websites, independent studios can now afford to make the games they want, without compromise and without breaking the bank. This evolution also encourages big publishers to take risks: as of 2014, both Sony and Microsoft have committed to fostering independent game development with dedicated incubators, Pub Fund (Playstation) and ID@Xbox (Microsoft).

The only element of crowdfunding that may take time for indie studios to adjust to is the follow-through. Plenty of developers have fully funded and released their games without a problem, but many have not. Crowdfunded games like Mighty Number 9 and Godus have faced multiple delays, re-designs, and buggy alphas, much to the chagrin of thousands of backers.

The main problem is that funding takes time. For decades, developers of all sizes have been accustomed to a singular budget handed over all at once, but the money from fan-funding can be given over a very long period of time. This adds time and money to the budget that some developers are not prepared to account for. Fan-funding is the future of gaming. Well-established studios can make games away from the flawed publisher system, while small developers can get their foot in the door of the games industry with their first game.

Simplified, crowdfunding puts the responsibility into the capable hands of gamers allowing game-makers do what they do best: make games.

 

____________

Sharing is caring so please share this post. Thank you!