CIU111 – 1003034 – Week 3

Your Income, Your Art

Kermit, Frog, Money, Swim, Bathroom Sink, Look Forward

The creative industry is a sector where many methods of funding exist. For someone coming from a video gaming background, I understand pretty much how it does work. Video games are on a project base model, where employees are hired only for the making of the game. In the gaming industry, many types of project exist, each with different scale and objective. From the music of a game to making a complete game, each needs a source of income for the artist. I know there are two main way to secure one, with a publisher or crowdfunding.

For the first way, I comprehend the business model for big publisher video game. Someone very wealthy invest in your game, waiting is investment to be fruitful. The majority of AAA video game depends on this model, as vast sums of money are needed to create the project. The reason why is for each developer, if you are making a big AAA game, you will need to pay the average worker 10,000 dollars each month for the duration of the project, which can last for at least three or more years. The cost can easily expend extremely fast. Hence, having a publisher is a great way to receive income.

The second principal way to fund a project is with crowdfunding. In this case, by using the help of a lot of other and smaller investor, some game are able to be fund. I strongly believe in this model, in contrast with Daoud (2010), as it gives the opportunity to small developers to fund their game. Crowdfunding lets a free reign to the developer imagination on the project, as stated in Tim Schaffer video on his Kickstarter page for Double Fine and 2 Player Production (2012). However, I know it possess many problems, as usually those kind of small companies do not possess a strong business model sometime.

Crowdfunding is an interesting business model, as the meaning of it change in the recent years. Nowadays, on website like Kickstarter, a lot of new project demands a ridicule small amount to make an AAA video game, as pointed out by Tassi (2015) on the Shenmue 3 project. The catch is publisher are behind the back for those games, investing in them if they have a successful Kickstarter, as explained by Thier (2015).

This creates a new dilemma for crowdfunding games: How can smaller companies, who needs to put the real amount on the Kickstarter, are going to compete with those AAA Kickstarter? Interestingly enough, even if some publisher use Kickstarter as a marketing poll for their game, is it really viable? I think that a fan base of gamer could be financing the game, but the market is not necessary really there. However, Kickstarter is a good way to make publicity for a game. Also, a new method exist, used by website like Patreon, where money is based on a subscription, instead of project funding. It offers much more certainty to the normal crowdfunding method, but the scale is less high than his counterpart. Thus, it exist many pros and cons for using crowdfunding, where the future of it is highly uncertain.

To gain money, they are existing multiple other ways to finance a project. From being paid by a publisher or doing some crowdfunding, money is something every project’s needs. Crowdfunding as also evolve in a way that may be more difficult for small games to be publish, but also in new directions, like website similar to Patreon.

Reference:

Daoud, Joey. (2010). My Kickstarter experience: The Good, Bad, and Ugly. Retrieved June 19th, 2015 from: http://coffeeandcelluloid.com/2010/05/my-kickstarter-experience-the-good-bad-and-ugly/

Tassi, Paul. (2015). “Shenmue 3” raise $2M on KickStarter, but the original cost $70M to make. Retrieved June 19th, 2015 from: http://www.forbes.com/sites/insertcoin/2015/06/16/shenmue-3-raises-2m-on-kickstarter-but-the-original-cost-70m-to-make/

Thier, Dave. (2015). Should you still be donating to the “Shenmue 3” Kickstarter ?. Retrieved June 19th, 2015 from: http://www.forbes.com/sites/davidthier/2015/06/17/stop-donating-to-the-shenmue-3-kickstarter-right-now/

Double Fine and 2 Player Productions. (2012). Double Fine Adventure. Retrieved July 4th, 2015 from: https://www.kickstarter.com/projects/doublefine/double-fine-adventure/description

Reference Image:

Kermit Frog Swim Money [Image]. (2013) Retrieved July 4th, 2015 from: https://pixabay.com/p-196498/?no_redirect

Broken Age [Image]. (n.d). Retrieved July 4th, 2015 from: http://mobilegameplace.com/wp-content/uploads/2014/06/Broken-Age-App-Store-Download.png

Shenmue 3.01 [Image]. (2015). Retrieved July 4th, 2015 from: https://www.flickr.com/photos/playstationblogeurope/18225446684

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CIU111 – 1003034 – Week 3

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