What the Hell These Game Developers Did with Your Kickstarter Money

[Burning Bridges]

the people behind of Star Command (iPad game?) explain how they ended up in debt even when their kickstarter was initially funded 200%.

Update #19: What the hell did you do with our money?

http://kotaku.com/5902280/what-the-hell-these-game-developers-did-with-your-kickstarter-money

They got $36,967 asking for 20,000, but now allegedly amassed 50k in debt.

funds not transfered 2000$
kickstarter / amazon 3000$
Price fullfilment 10,000$
Music - $6,000
Attorneys, startup fees, CPA - $4000
Poster art - $2000
iPads - $1000
PAX East - $3000

In the end they had only $6000 for development, and because this is income, it had to be taxed

So that gets us to the present. We have still taken a lot of debt on ourselves (over $50k), and hopefully this can help give insight to other kickstarters and would-be-developers on what to expect.

Mostly, isn't this is what you get when you cannot handle money? 30.000$ is still a lot of money for a few guys, making a game on their own PCs, who spend no money on posters, t-shirts and attorneys. You will not get very far with your budget when you intend to spend the money for more than just the bare minimum. I would expect this to be a recurring subject, and that it will not be the last time we hear this from kickstarter projects in the 10k-100k range

In my opinion the only really interesting thing here is that ca 5% of the money didn't transfer at all:

To begin with, we didn't get all of that. We lost about $2,000 to no-shows, just people that pledged and the funds didn't not transfer.

This should be the same across all projects.

 

[Kz3r0]

Incompetent retards, also, you forgot the best:

SPECIAL NOTE: BACKING ON ANY LEVEL DOES NOT INCLUDE A COPY OF THE GAME. THERE IS A FAQ ITEM AT THE BOTTOM OF THE POST EXPLAINING THE REASONING!

Added to the shit list.



Edit:
I hope that the 2000$ that bounced are of these guys.

Pledge $1,000 or more
2 Backers

–––––––– FLEET ADMIRAL LEVEL ––––––– In addition all of the above rewards you will receive: IN-GAME CHARACTER: Your likeness (or a friend/family member of your choosing) will be featured in the final game as an enemy captain / admiral / guest star CREDITS: Your name will be put in the special credits of the game (MP3 MUSIC+EXCLUSIVE ROOM+SUPER INTERGALACTIC PROMO CODE+PHONE BACKGROUNDS+FUN STICKERS+SC BUTTON+SHIRT+POSTERAP+IN-GAME CHARACTER+CREDITS) Outside of US & Canada add $15 for shipping
Estimated Delivery: Dec 2011

 

[Burning Bridges]

I indeed missed that!
*Your order does not include a copy of the game. You only pay us so we can order superfluous, expensive crap for you. you have a wide selection of t-shirts, mp3s, phone backgrounds and much more*

 

[Kz3r0]

ITT devs outjew publishers.

 

[Captain Shrek]

Kickstarters do NOT guarantee development. Just promise it. There is nothing binding them legally to NOT be retards. Its the user base ALWAYS that gave them money which is more retarded. When we give money to people like Fargo or Tim Schaefer we know that these guys at least have some experience with what they are doing. Rest should be taken with caution and a sack of salt.

I would first like the devs to make a demo (assuming they are novices) of what they plan to make before even asking money from me, so that I know they are capable (any idiot can be serious). But that's just me.

 

[Kz3r0]

Attorneys, startup fees, CPA - $4000

Two possibilities, they are retarded teenagers or they purposely defraud people for opening their own business.

 

[Average Manatee]

In other news, stupid people need $20k, get $36k and waste it all.

Does sound like a scam to be but life has led me to believe that people are actually this dumb.

 

[Burning Bridges]

It's not a scam, no.

 

[spectre]

So, it seems that this whole kickstarter thing is not for your average idiot... who woulda thunk it.

 

[Burning Bridges]

That's one reason I am comfortable forking money over to fargo, he's obviously a good businessman. I'm not sure I'd feel as comfortable giving money even to a troika kickstarter even if they could get the gang back together, let alone to these random indie guys who think they will make a game for 20k.

I realized a very simple fact. I have no qualms to put trust in older guys from 30 or better, 40 yrs upwards, but when I see a half kid, it needs a lot more to convince me. Be it that the kid is very smart or has some kick-ass technology or artwork to show.

On the other end of the spectrum are projects with a 70 year old lady, who may be dead before the project gets finished

 

[20 Eyes]

You certainly can make an indie game for 20k, considering that successful games have been made for less.

But if you spend 10% of your planned budget on 'poster art', you might want to ask the nearest adult to manage your money for you.

 

[Morkar Left]

Yup, some business plan and calculating skills should be essential keys to don't make a mess. Kickstarter is a bit more complicated than selling self-made lemonade in the street. And that's why I'm very cautious with spending money on kickstarter. Either they have a demo to show or have a good reputation in the field they are kickstarting. I even have some doubts with W2 considering the short development cycle.

 

[Grimlorn]

Is there any evidence/oversight that they actually developed the game or are they just posting how they spent all this money? For instance, I could start a kickstarter for a game, get all the monies, then 18 to 24 months say later that I'm in debt and I spent all my money on developing the game when in fact I spent all my monies on hookers and blow.

 

[Renegen]

10% spent on PAX East is another stupid move, go ahead and market a vaporware! And 10% taken out by Kickstarter, that really hurts too. Those fees are ridiculous, is it really that much? It should be 1% - 2%.

Finally, this quote to me was very fishy:

you had $10,000 for prize fulfillment. That includes printing the posters, the shirts and shipping everything. If we had to do it again, we also would have included the cost of a 3rd party fulfillment house - we just aren't equipped or skilled in that area, and it was (still is) something that we struggle with.

First, only a total of 99 people qualified for the t-shirts or posters. Second, OF COURSE YOU USE A 3RD PARTY TO MANUFACTURE YOUR T-SHIRTS AND POSTERS. So they're saying a t-shirt + poster + shipping cost them $100 each? The Kickstarter even has to add $15 for shipping outside the US + Canada. The scam is strong in this one. When it comes to shipping people physical goods, it makes much more sense to ship these light items with the whole game box. Of course, they didn't offer the game with their rewards.

Ahem, I just wish 21th century scammers just came out ahead and laughed about their operation instead of coming up with excuses.

 

[Kz3r0]

10% spent on PAX East is another stupid move, go ahead and market a vaporware! And 10% taken out by Kickstarter, that really hurts too. Those fees are ridiculous, is it really that much? It should be 1% - 2%.

Actually a 10 % fee for a business mediator is standard fare, in many cases can be 20%.

 

[Burning Bridges]

only a total of 99 people qualified for the t-shirts or posters

Good find. It's pure idiocy if they spent 100$ per backer, just for superfluous garbage.

 

[Kz3r0]

only a total of 99 people qualified for the t-shirts or posters

Good find. It's pure idiocy if they spent 100$ per backer, just for superfluous garbage.

Assuming that they don't know anything about on line shops selling t-shirts. with your design for 5$ or buy an apposite printer and make your own with wal mart 1$ t-shirts.

 

[Infinitron]

Management skills almost as shitty as EA's

 

[udm]

Since all the retardation and stupidity of the developers has been discussed above, I'm just going to point this out too:

PAX East - $3000

What the fuck

 

[Damned Registrations]

My personal favourite was the 6k on music. I mean, how the fuck?

Also, the kickstarter/amazon fees are reasonable. Especially since the whole thing started mostly revolving around stuff like this. I doubt they'd keep afloat if they only took $2.50 for projects like that.

 

[Renegen]

10% spent on PAX East is another stupid move, go ahead and market a vaporware! And 10% taken out by Kickstarter, that really hurts too. Those fees are ridiculous, is it really that much? It should be 1% - 2%.

Actually a 10 % fee for a business mediator is standard fare, in many cases can be 20%.

Where? Because even Wall Street only asks for 2-4% when acting as a financial intermediary.

 

[Kz3r0]

Where? Because even Wall Street only asks for 2-4% when acting as a financial intermediary.

I should have used business transaction fees, they usually are applied to physical goods tho.

 

[Renegen]

Where? Because even Wall Street only asks for 2-4% when acting as a financial intermediary.

I should have used business transaction fees, they usually are applied to physical goods tho.

What business transaction fees? What businesses? Are you now talking about Visa? They charge a microscopic amount. Just be more specific, because it's a fucking ripoff.

 

[Kz3r0]

Where? Because even Wall Street only asks for 2-4% when acting as a financial intermediary.

I should have used business transaction fees, they usually are applied to physical goods tho.

What business transaction fees? What businesses? Are you now talking about Visa? They charge a microscopic amount. Just be more specific, because it's a fucking ripoff.

All right, I was wrong.

 

[almondblight]

SPECIAL NOTE: BACKING ON ANY LEVEL DOES NOT INCLUDE A COPY OF THE GAME. THERE IS A FAQ ITEM AT THE BOTTOM OF THE POST EXPLAINING THE REASONING!

You have to love their reasoning:

The quickest, and basically only path to success, on the Android and iPhone market places is with sales. If we gave the game away, our #1 asset which is our fans, would be gone on day one. We have done our best to offset that by giving you every piece of DLC we ever produce for free - so you've got that going for you.

"We can't give you the game in return for your donation, because then you wouldn't buy our game when it came out."

This reminds me of the Hardcore Tactical Plagiarism game, where the stench of a scam is so strong it's hard to say the donors are being tricked.