How crowdfunding changed the gaming industry

Under Development is our weekly web comic looking at the world of game development and crowdfunding.

Crowdfunding has become a popular method of amassing capital by relying upon the collective efforts of a large pool of individuals. Websites as well as social media have been able to spread the word of the project. As this concept has spread, developers from a variety of industries have relied upon it for funding including the gaming industry.

Changes have occurred within the gaming industry due to crowdfunding. More and more indie game developers have been able to obtain capital for projects with crowdfunding. Plans for a future game are shared via a website, such as Kickstarter, and those who wish to help fund the project, put up money towards the completion of the project.  The video game, Shenmue 3, is an example of a top funding project which collected over $6 million in crowdfunding investment. The online gambling industry has also benefited from this as some of the games included popular casino games available on online casino such as gaming club. The internet has made it even easier to find investors across demographics. In fact, many gamers themselves will put money towards projects. Many do this with the intent of getting games out on the market that fulfill a needed niche. Additionally, they saw the option of funding these projects as a way to encourage other talent to create games besides the top commercial companies. While crowdfunding has helped create some of today’s top games, only about half of the proposed projects ever make their funding goal.

While crowdfunding has helped launch some new games from indie studios, there are some drawbacks to this method of raising capital. For one, it is actually a lot of work to launch a crowdfunding drive and spread the word about the proposed project.  Many project ideas can be stolen by other developers if the concept hasn’t been patented prior to announcing the game plan.

As games continue to be developed, indie studios will continue to rely upon this method of securing funding.

(This article was posted in exchange for money. We don’t feel good about it, but it helps pay our awesome team of writers.)


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Greg Micek

Greg Micek

Editor at Cliqist
Greg Micek has been writing on and off about games since the late nineties, always with a focus on indie games. He started in 2000, which was one of the earliest gaming sites to focus exclusively on indie games.
Greg Micek


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