Video Game Crowdfunding: Records, Failures, and Advice

Contents:

• Investor Motivation
• Record-Breaking Successes
• Major Failures
• Tips for Launching a Crowdfunding Campaign

In our second article on gaming crowdfunding, we analyze the reasons why some projects achieve record-breaking fundraising while others fail. Andrey Tsvetkov, head of publishing at Owlcat Studio, shared valuable advice on how to successfully organize a crowdfunding campaign. He emphasized the importance of a clear strategy, thoughtful marketing, and active engagement with potential investors. Understanding your target audience and creating engaging content are also key to successfully raising funds for game development.

In our first article, we provided an overview of popular video game crowdfunding platforms and analyzed their pros and cons.

• Why do people fund game development?
• From Broken Age to Star Citizen: The Main Successes in Game Development Crowdfunding
• From Ouya to Godus: The Main Failures in Game Development Crowdfunding
• Tips for Launching Your Own Crowdfunding Campaign from Owlcat

Investor Motivation

Interest in investing in game development is explained by the results of a study by the University of Cologne, which examined the motivations of investors on the Kickstarter platform who support video games. Conducted in 2014, this study covers one of the industry's most successful periods, when numerous gaming projects were launched. Backers investing in game development pursue a variety of goals, including a desire to support developers, an interest in unique game concepts, and the expectation of access to exclusive content. These factors make investing in video games attractive to many people eager to become part of the gaming process and support innovation in the industry.

The main goal is to support the development of games in rare genres. Backers aim to influence the popularity of a particular video game genre. Investors in this context fall into three categories:

• Backers want to help the developer release games without publisher restrictions.
• Buyers are primarily interested in receiving the finished game.
• Influencers see crowdfunding as a way to influence the video game industry as a whole.

Record-Breaking Success

Broken Age was one of the first games to demonstrate the potential of crowdfunding. Initially, the project was called Double Fine Adventure, a reference to the name of the developer studio, Double Fine. This point-and-click adventure raised over $3 million in 2012, with an initial goal of $400,000. Broken Age became the most successful project on the Kickstarter platform at the time.

Historically, independent game studios like Obsidian and Double Fine used several strategies to survive. They sought investors, signed contracts with publishers to create games, and financed development with their own funds accumulated through the first two methods. No indie studio of any size could survive without at least partial investment from outside partners. This often led to difficulties, including project cancellations, employee layoffs, and unfavorable deals. In today's environment, indie studios continue to adapt to the changing market, finding new ways to ensure their financial sustainability.

Double Fine found a fourth way to finance their projects: Kickstarter, a crowdfunding platform launched in 2009. Through Kickstarter, game developers can directly engage with fans and raise funds for their projects. This model has allowed many independent studios to realize their ideas without traditional funding methods.

D. Schreier's book "Blood, Sweat, and Pixels" offers an in-depth look into the world of video game development. The author explores the complex processes behind the creation of successful projects and shares unique stories of developers who face challenges and difficulties in their work. Schreier emphasizes the importance of considering the human factor in an industry where passion and creativity are often intertwined with pressure and deadlines. This work not only informs about the technical aspects of development but also reveals the emotional experiences of the people behind beloved games. Readers will understand that creating a game is not just a job, but a true art that requires dedication and courage.

Double Fine's success is largely due to the reputation of its leader, Tim Schafer. He became known for developing humorous adventure games at LucasArts, including such iconic projects as the Monkey Island series, Full Throttle, and Grim Fandango. Schaefer continues to bring his unique style and creativity to games, which contributes to the popularity of the studio and its products.

Crowdfunding has become an effective alternative for publishers who were unwilling to finance less popular genres, such as adventure games. The resulting gross reached $3 million, significantly exceeding the combined development budget for all of Tim Schafer's previous games at LucasArts. This success underscores the growing interest in independent projects and the opportunities crowdfunding offers for creative initiatives in the gaming industry.

2 Player Productions, a documentary film company, approached Double Fine to create a film about the development of their game. The Kickstarter campaign was organized with the upcoming documentary project in mind.

Publisher funding often places restrictions on the information that can be published. Open funding gives developers and documentarians the opportunity to share details of the process of creating a new game with a wider audience. This not only increases development transparency but also strengthens the connection between creators and players, which in turn contributes to the formation of a community around the project. Open access to information about the game's development can increase interest and trust from potential players.

Tim Schafer continues to use crowdfunding in his work. Psychonauts 2 is a sequel to the cult game from Double Fine. The crowdfunding campaign took place on the Fig platform, where the developers raised over $3.8 million. In addition to organizing crowdfunding campaigns for his projects, Tim Schafer co-founded Fig, collaborating with the heads of inXile and Obsidian studios. This approach demonstrates the effectiveness of crowdfunding in the gaming industry and its importance for independent developers. Crowdfunding has had a significant impact on the revival of the CRPG genre, beyond adventure games. InXile successfully launched the development of the post-apocalyptic role-playing game Wasteland 2 thanks to a Kickstarter campaign. Backers have raised nearly $3 million, surpassing the original $1 million goal and marking a major step in bringing the sequel to the 1988 RPG that is the precursor to the Fallout series.

A year after Following the successful funding of Wasteland 2, inXile Entertainment launched a new crowdfunding campaign for the development of Torment: Tides of Numenera, a spiritual successor to the cult classic Planescape: Torment. 74,000 backers participated in the campaign, raising an impressive $4.1 million.

The development campaign for the third part of Wasteland took place on the Fig platform. The inXile studio raised over 3 million dollars. According to the information on the game's page, 40% of the budget for Wasteland 3 was provided by sponsorship support from backers, 40% was invested by the developers themselves, and the remaining 20% ​​came from outside investors.

Obsidian Entertainment, the third founder of the game development platform Fig, launched a crowdfunding campaign in 2012 for the old-school RPG Pillars of Eternity. At the time, the studio raised a record $4 million from backers, a significant achievement in the video game industry.

The Eternity developers, like many other game creators, typically work in isolation, receiving public feedback only during trailer releases or at exhibitions. However, the Kickstarter platform offers a unique opportunity to receive criticism and feedback in real time. This approach may be unusual, but it proves extremely useful for improving and refining the project. Community feedback helps developers better understand player needs and adapt their product to audience expectations. Thus, Kickstarter is becoming not only a place for funding but also an important tool for creating high-quality games that meet market demands.

Some backers have been aggressive and demanding. Seeing that the Eternity project wasn't meeting their initial expectations, they began to insist on a refund. Meanwhile, other backers exuded positive energy, demonstrated a constructive approach, and supported the team through difficult times. Excerpt from D. Schreier's book "Blood, Sweat, and Pixels," published by Bombora. In this book, the author takes an in-depth look at the video game development process, highlighting the difficulties and achievements faced by developers. Schreier shares unique insights into the inner workings of the gaming industry, emphasizing the importance of teamwork, creativity, and perseverance. Readers will have the opportunity to learn how ideas are brought to life, the development process, and the challenges facing game creators. The book will be useful for both development professionals and game enthusiasts seeking a deeper understanding of how their favorite projects are created.

Darren Monahan, one of the co-owners of Obsidian, noted that during the game's development, he felt like 300-400 complete strangers were working on the project. This highlights the scale of work and collaboration required to create quality games.

The crowdfunding campaign for Pillars of Eternity II: Deadfire was held on the Fig platform. The developers successfully raised $4.4 million, significantly exceeding their initial goal of $1.1 million needed to begin production.

The business simulation game Prison Architect raised $9 million in funding through Kickstarter and its official website. Before its official release in 2015, the game earned $19 million, selling 1.25 million copies. Prison Architect was one of the first games to be released in Early Access, which had a significant impact on the video game industry. This approach to releasing games allowed the developers to receive feedback from players and make changes early in development, which in turn improved the quality of the final product.

By 2016, the game Prison Architect from Introversion Software was has been acquired by more than 2 million players. In January 2019, the rights to Prison Architect were acquired by Paradox Interactive from the developers.

We realized it was time for a new approach: gamers are eager to participate in the creation of games. We needed to find a way to combine existing ideas. As a result, we created a platform similar to Kickstarter. Initially, we were uncertain about the success of our project, setting ourselves an ambitious goal of selling 100 units in the first 24 hours to prove the viability of the idea. However, we quickly surpassed this mark, which was an unexpected and inspiring result for us.

Mark Morris is one of the founders of Introversion Software, a company known for its contribution to the video game industry. Since the company's inception, he has played a key role in the development of innovative and unique projects that have become popular among players around the world. Introversion Software is renowned for its original games that stand out from the crowd thanks to their unconventional approach and creative ideas. Under the leadership of Mark Morris, the development team continues to create games that capture attention and interest, delivering high quality and unique gaming experiences.

Sega, as the publisher, originally intended to release a sequel to the renowned Shenmue series in the early 2000s. However, given the poor sales of the first two games and the high development costs, the company decided to forego the third installment. Despite Shenmue's cult status, financial difficulties and lack of audience interest were the main factors influencing this decision.

Shenmue III successfully entered the market thanks to a crowdfunding campaign. It attracted nearly 70,000 backers who supported the project, and the game ultimately raised over $6 million.

Crowdfunding is actively used not only to finance video games but also to develop gaming hardware. A prime example is the Oculus Rift VR headset crowdfunding campaign, which began in 2012. The initial goal of $250,000 was reached in just four hours, and within a month, total donations had reached nearly $2.5 million from 9,500 backers. This case highlights the huge interest and support from the community for innovative technologies in the gaming industry.

In 2014, Facebook, headed by Mark Zuckerberg, acquired Oculus VR for $ 2 billion. This deal is one of the most significant events in the virtual reality space, highlighting the growing interest in VR technology. Oculus VR has established itself as a leading developer in the virtual reality space, and its acquisition by Facebook has opened up new horizons for the implementation of VR in various fields, including gaming, education, and social interactions. Details on the development of Oculus can be found in our separate article.

Blockchain technology EOS ranks first in crowdfunding funds among all categories. In second place is the space simulator Star Citizen, which is also known for one of the largest budgets in the history of the gaming industry. EOS and Star Citizen demonstrate significant interest from investors and users, highlighting the relevance and potential of these projects in the market.

Star Citizen, which combines elements of a space simulator, a first-person shooter, and an MMO, has been in beta since August 2013. The game consists of several alpha components: a hangar, a combat simulator in outer space, an online shooter, and a multiplayer platform that unites all of these elements. In addition to these, the Squadron 42 project is being developed – a set of missions designed for single or cooperative play. Star Citizen offers a unique gaming experience, allowing players to immerse themselves in a vast and detailed space environment, explore various planets, engage in space combat, and interact with other players in a dynamic environment.

In 2012, Chris Roberts, a renowned space designer Star Citizen, the developer of the Wing Commander and Freelancer space simulators, launched a successful Kickstarter campaign. During the first month of development, the new space game Star Citizen raised $2.1 million. This project has become a symbol of crowdfunding in the gaming industry, attracting the attention of millions of players and investors around the world. Star Citizen promises revolutionary technology and a unique gaming experience, making it one of the most anticipated projects in the space simulator genre. Following a successful Kickstarter campaign, Chris Roberts launched a website dedicated to the ongoing crowdfunding campaign and tracking the project's development progress. The official website indicates that as of August 2021, the amount of pledges has exceeded $380 million. However, the developers do not specify whether this figure includes paid content, such as the $3,000 spaceship. Cloud Imperium Games does not provide a final release date for Star Citizen and cannot guarantee investors the project's completion. The game was originally planned for release in 2014. Interestingly, Star Citizen development is ongoing, with the studio actively working on new features and content, highlighting their commitment to creating a massive game world. However, the uncertainty surrounding the release date raises questions among the community and investors.

Major Failures

The Ouya console is a prime example of both record-breaking box office revenue and a failed launch. In 2012, the project set two crowdfunding records: Ouya raised $1 million in a record-breaking eight hours and $2.5 million in the first 24 hours of the campaign. Ultimately, $8.5 million was raised for the console's development. However, despite successful funding, Ouya's launch was a failure, highlighting the importance of not only fundraising but also product quality in achieving market success.

Ouya was developed as a budget alternative to expensive game consoles. The cost of the device is only $99. Compact dimensions, comparable to a Rubik's cube, and a weight of only 300 grams make it convenient to use. Android was chosen as the operating system, providing access to a wide range of games and apps. At launch, the Ouya faced serious issues with both hardware and software. Journalists noted the gamepad's shortcomings, poor build quality, and difficult-to-use interface. The main reason for its failure was a lack of compelling games, which prevented the console from competing with PlayStation and Xbox. The Ouya launched in 2013. In 2015, Razer acquired the device's software and integrated it into its services. As a result, Ouya support efforts ceased in 2019.

Shroud of the Avatar: Forsaken Virtues is a multiplayer role-playing game (MMORPG) created by Richard Garriott, the visionary successor to the Ultima series. The game was announced in 2013, and backers supported the project through a Kickstarter campaign, pledging nearly $2 million. The official Early Access release took place in 2014. The game combines classic RPG elements with innovative mechanics, offering players a unique experience exploring a vast world, interacting with other characters, and completing quests, attracting both fans of the original series and new players.

In addition to Kickstarter, the developers also raised funds through their own website. In 2018, Shroud of the Avatar was fully released. Portalarium continued to raise additional development funds through in-game purchases, including a castle that cost up to $12,000. Through crowdfunding and a free-to-play model, approximately $12 million was raised.

Richard Lord British Garriott, a renowned game developer, is known for his cult Ultima series, which has a devoted following. However, despite the team's impressive experience and substantial budget, Shroud of the Avatar received a low Metacritic score of 58. The project's main problems are its outdated game design, unintuitive interface, and failed attempts to combine elements of single-player and multiplayer RPGs.

Godus is a god simulator developed by renowned game designer Peter Molyneux and Godus, a game developed by 22cans, was successfully crowdfunded on Kickstarter in 2012, raising over $700,000. Godus offers a unique experience that allows players to manipulate the world, shaping the landscape and interacting with its inhabitants. The developers aimed to create an innovative game that combines elements of strategic planning and creativity. Godus attracts both genre fans and new players thanks to its original concept and deep gameplay mechanics.

Godus, a buggy beta version, launched in Early Access on Steam in 2013 and remains there eight years later. The mobile version, released in August 2014, is significantly different from the expected god simulator. On iOS and Android, Godus uses a business model with microtransactions and includes gameplay elements typical of most mobile games, such as farming mechanics. This transformation of the game caused mixed feelings among players, who expected deeper and more original gameplay mechanics.

Instead of a full release, players received a spin-off of Godus Wars. This RTS game has still not left the alpha version. The developers decided to give it away for free to all Godus owners, but the presence of microtransactions caused discontent among users. At the time of Godus Wars' release, players only had access to one continent, while the second required a $5 payment. The outcry that arose in the Steam community prompted the developers from 22cans to remove microtransactions. This decision was received positively, and players began to anticipate further updates and improvements to the game.

Project backers were disappointed that 22cans had stated that development would prioritize PC, but in reality, Godus was focused on mobile platforms. Furthermore, backers were outraged by unfulfilled promises, including the lack of a multiplayer mode, a Linux version, and a book documenting the development process behind the scenes. These shortcomings negatively impacted the project's reputation and caused discontent among its supporters.

Not all cases of failure on crowdfunding platforms are associated with successful fundraising and problems that arose during the development process. The Alpha Colony project, for example, failed to raise its $50,000 goal, settling at $28. According to Kickstarter rules, such a project is considered unfunded.

The main requirement for the founder is that the required amount must be raised by the set deadline. Otherwise, all funds will be returned to backers. This "all or nothing" rule led to failure for the Alpha Colony developers. This circumstance underscores the importance of strategic planning and actively engaging with the community to avoid financial losses and ensure the successful completion of the project.

Tips for Launching a Crowdfunding Campaign

Andrey Tsvetkov, Head of Publishing at Owlcat Studio, shared valuable tips for launching a crowdfunding campaign. Owlcat Games has successfully completed two Kickstarter campaigns, confirming their experience in this field.

The role-playing game Pathfinder: Kingmaker has successfully raised $900,000, surpassing its goal of $500,000. Its sequel, Pathfinder: Wrath of the Righteous, also performed well, raising over $2 million against its initial goal of $300,000. These achievements highlight the high interest and support of the community for the Pathfinder series, demonstrating the growing popularity of role-playing games and their ability to attract the attention of both old and new fans of the genre.

A Kickstarter campaign serves three key purposes for a game project. First and foremost, it provides additional financial resources. Developers often strive to add more content than initially budgeted. In the video game industry, anything that goes over budget is typically cut from the final product. Kickstarter provides an opportunity to keep this content in the game. However, crowdfunding should not be viewed as the only way to fully cover development costs. It's also important to consider other funding sources, such as investors or publishers. This will help expand the project's capabilities and attract more funding for its implementation.

Andrey Tsvetkov is the Head of Publishing at Owlcat. In his role, he is responsible for developing and implementing strategies for creating and promoting content that attracts audiences. His publishing experience and deep understanding of the gaming market enable Owlcat to create high-quality and in-demand products. Under Andrey's leadership, the team actively works to improve interaction with players and increase engagement levels.

Developers typically set specific goals for their projects. Reaching a certain funding amount allows for the introduction of additional content into the game, including new locations, bosses, characters, and voice acting. This not only improves gameplay but also attracts more players, which in turn increases the game's popularity and commercial success.

The second goal is to form a core community and receive feedback early in development. This isn't about finding bugs or recruiting free beta testers, but rather testing the viability of various game ideas. Your supporters are highly motivated and are the most engaged in the project. The third task is marketing. A successful Kickstarter campaign serves as an excellent opportunity for additional promotion, attracting the attention of the press and potential players. Effective communication with the community and active user participation at the initial stage will not only help improve the product but also build a loyal fan base ready to support the project in the future.

Andrey Tsvetkov is the head of publishing at Owlcat. With his experience and strategic approach, the company successfully develops projects in the video game industry. Under his leadership, Owlcat continues to create unique game worlds that attract the attention of both players and critics. Tsvetkov is actively involved in the development and management processes, which contributes to improving the quality of the product and strengthening the company's position in the market.

The Belgian studio Larian successfully released both parts of the game Divinity: Original Sin through crowdfunding. In an interview, company CEO Sven Vincke shared his thoughts on what's easier for a developer: running a crowdfunding campaign or partnering with a publisher. He noted that crowdfunding offers more freedom and allows for a better understanding of player needs. This is an important aspect of game development, which can significantly impact the final product and its audience reception.

Crowdfunding offers a unique opportunity for game developers to better understand the needs of their audience and gain valuable feedback. Modern tools that enable connection with players are becoming essential for the successful development of projects. In the era of digital distribution, which simplifies the game sales process, the need for intermediaries between developers and players is becoming irrelevant. Developers can directly interact with their audience, which contributes to the creation of higher-quality and more in-demand products.

Sven Vincke is the founder of Larian Studios, known for its successful role-playing games. Under his leadership, Larian developed such projects as the Divinity: Original Sin series and Baldur's Gate 3, which have received acclaim from both critics and players. Vincke is actively involved in the game development process, paying attention to detail and innovation, which contributes to the creation of unique gaming experiences. His vision and commitment to quality have made Larian Studios one of the leading developers in the video game industry.

Andrey Tsvetkov recommends starting to prepare for an advertising campaign six months before its launch. The main work should be done in advance to ensure the successful promotion of a product or service. This includes researching the target audience, analyzing competitors, developing a strategy, and creating content. The sooner you begin preparation, the higher the likelihood of achieving your goals and maximizing the effectiveness of your advertising campaign.

• choose a launch window;
• identify the primary and additional goals, a list of tiers (sets) for backers;
• prepare a video and other content for the page.

Before the launch, you need to prepare lists of additional goals for which you plan to raise funds in case of successful completion of the project. Also, create relevant posts with news and updates for publication. Once launched, be prepared for active interaction both on the platform and on social media. It is important to promptly respond to questions and comments from your backers. Backers expect quick responses, and your active presence will increase the project's credibility.

Andrey Tsvetkov is the Head of Publishing at Owlcat. His responsibilities include managing game development and publishing processes, as well as coordinating the team's work. Under his leadership, the company has achieved significant success in the video game industry, releasing several critically acclaimed titles. Tsvetkov is actively involved in strategic planning and publishing development, which contributes to improving the quality and efficiency of work. Thanks to his experience and knowledge, Owlcat continues to strengthen its position in the market and attract the attention of gamers around the world.

The first and last two days of your campaign are the most active for fundraising. Before starting a campaign, it is important to analyze how many backers you need to reach your primary goal. The faster you reach this goal and unlock additional ones, the more successful your project will be. Large campaigns often reach their primary goal within the first 48 hours, attracting more investors. People are more willing to support projects that are already close to success and are raising funds only for additional goals or content. It is recommended not to reveal all goals at once, but to publish them in stages, as the previous ones are achieved. This will create intrigue and give you the flexibility to manage the order in which goals are unlocked. This approach not only maintains backers' interest but also contributes to the successful development of your campaign.

Andrey Tsvetkov is the head of publishing at Owlcat. He oversees projects aimed at creating high-quality content in the video game industry. Owlcat is known for its unique games, and Andrey plays a key role in shaping the strategies and concepts that contribute to the company's development and success in the market. His experience and professionalism help the team achieve high results and ensure the competitiveness of Owlcat's products.

To maintain the momentum of the first days of the campaign, it is important to plan exciting announcements or additional goals for the second week. This will help keep the audience interested and maintain the activity of the collections. Typically, there is a decline in activity in the middle of a campaign, when it reaches its peak, and a sharp increase in interest at the end. Keep this in mind when publishing new goals. In the final days of the campaign, goals should not be too lofty so that participants feel they can be achieved and realistically funded by the end of the campaign.

Andrey Tsvetkov is the Head of Publishing at Owlcat. His responsibilities include managing the development and publication of games, as well as coordinating the team's work. Under his leadership, Owlcat has achieved significant success in the gaming industry, releasing high-quality products that have received acclaim from both critics and players. Tsvetkov is actively involved in strategic planning and determining the creative direction of projects, which allows the company to remain at the forefront of the modern gaming market.

When planning goals, it is important to carefully consider each one. When the team has many creative ideas, it is necessary to critically evaluate which ones are worth implementing in the game. When compiling the final list, it is recommended to consider the ratio of the cost of implementing each feature or content to the level of enjoyment it will provide to players. This approach will help avoid expensive ideas that could crowd out more affordable, yet equally attractive, solutions. The result will be a balanced project that meets player needs and is cost-effective.

Different types of players require diverse content. Some are interested in new mechanics, such as a role-playing class, while others value a narrative aspect, such as a new chapter or quest. Combine different goals so that every player can find something that motivates them to support the fundraiser.

Andrey Tsvetkov is the Head of Publishing at Owlcat. His experience and professional skills play a key role in the successful implementation of the company's projects. Owlcat is known for its high-quality games, and under Andrey's leadership, the team continues to develop unique game concepts, combining innovative approaches with a rich gaming heritage. Leading industry positions require Andrey not only in-depth knowledge but also the ability to adapt to rapidly changing market demands.

Before launching your campaign, make sure you have prepared lists of additional fundraising goals for success. Also, prepare relevant posts with news and updates for publication. After the launch, be active on the platform and social media, responding to questions and comments from your supporters. Backers will ask questions and expect prompt responses from you.

Andrey Tsvetkov is the Head of Publishing at Owlcat. His responsibilities include managing the publishing and game development processes, as well as coordinating the team's work. Under his leadership, Owlcat has established itself as a leading developer in the industry, creating unique and engaging gaming projects. Andrey actively contributes to the company's strategy, allowing Owlcat to remain at the forefront of the video game world. His experience and professionalism contribute to the successful implementation of creative ideas and the achievement of high quality standards.

To maintain the momentum of the first days, it is worth planning exciting announcements or additional goals for the second week of fundraising. This will help maintain audience interest and campaign activity. Interest typically declines midway through the process, when the campaign "plateaus," and then sharply increases in activity in the final days. It is important to take this fact into account when publishing new goals. In the final days of the campaign, goals should not be too ambitious so that participants feel they can be achieved and realistically funded to the end.

Andrey Tsvetkov is the Head of Publishing at Owlcat. His responsibilities include strategic project management, content development, and team coordination. Under his leadership, Owlcat has achieved significant success in the gaming industry, releasing high-quality and in-demand products. Andrey Tsvetkov is actively involved in creating unique content that resonates with players and critics, thereby strengthening the company's position in the market.