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Kickstarter, getting paid to get paid
Kickstarter, getting paid to get paid
With kickstarter getting more and more momentum where does the end profit go?Posted by Jonathan 'prisonedbeast' Bauer on Fri, Aug 24 2012 at 05:43pm
Kickstarter is getting a lot of momentum in the gaming community by cutting out the middle man. The middle man being the publishers such as EA and Activision to name the two big ones. The purpose of the publisher is to provide money to a game studio in order to produce a game. The game is usually pitched to the publishers first, in order to make sure they like the idea or think that they can make their money back and receive a profit as well. However with this middle man going away, gamers becoming the publishers and studios selling their ideas to the consumer directly, where does the profit go?
To fully explain what publishers do, think of it in terms of a bank and a small business. The small business comes to the banks saying they need x amount of money, and the bank, if they like the idea, will provide the money in hopes of making that money back along with interest. Now the bank is the publisher and the small business represents the game studios. The publishers provide money to the studios, hoping to make their money back like I stated earlier. With kickstarter this cuts out the publishers. Think of it like a bunch of customers of the small business giving money to see that business grow and then sell products to other consumers. This eliminates 100% of the risk which just feels off.
If game studios have absolutely no risk then why should they risk going above and beyond. Why not just do the bare minimum? Well one incentive would be the fact that they get to keep all the profit. I am not aware of any kickstarter that promises to pay back the backers along with some interest. Think of it this way, with kickstarter game studios are now being paid to get paid. The studios can either continue to make games or just get out and retire nice and early. This would obviously make some people upset but there is absolutely no guarantee that this couldn't happen.
Backers are now the ones who are taking the risk. This doesn't matter a whole lot because instead of one corporation risking $1 million, it becomes 1 million people risking a $1. Game studios could be feeling a lot of pressure to please their fans and most of the obvious money grabs are not getting funded. This is a very what if situation. Though there is still hope with the help of kickstarter, we could see more companies like Valve pop up. Self Sustaining and loved by the masses this could be the best case scenario and very likely if the right companies get funding.
In conclusion this is something that all people need to think about before backing any project. Kickstarter could be the best thing to happen to gaming, but until we start actually seeing the seeds sprout, we could be throwing money into the furnace. What do you guys think? Is kickstarter the best thing to happen to gaming or is it just a gimmick? Leave your feedback in the comments below.
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