What is Game Development Crowdfunding?

For game developers, crowdfunding serves as a method to obtain project financing from the public; it may also function as a channel for fan participation during a game’s creation. Backers contribute a future game copy, merchandise, access-related items, or participation in game development.

At this point, a studio runs a campaign that explains what the game is, the development cost, what will be done during development, the estimated timeline, and how backers might benefit. Pledgers can decide to donate a certain amount of money or a valued item in return for the chosen crowdfunding model.  Campaign success, of course, will depend on how it is organized. In most cases, all-or-nothing models are used and are released to game developers only after the game project meets its goal (funds target).

Crowdfunding activity in the sector was higher in 2012. Initial financial contributions for a specific gaming campaign were processed within the predetermined timeframe, followed by additional contributions amounting to millions of dollars. This campaign suggested that game developers might obtain funding independent of traditional publishers or investors; consequently, some studios began to explore crowdfunding as a funding mechanism.

Platform fees differ for crowdfunding campaigns. Depending on campaign type and platform, costs may incorporate service charges, payment processing, currency conversion, shipping, manufacturing, and reward fulfillment.

A backer tier is a level where a backer promises or pledges a certain amount of money and receives a predefined reward or reward pack. The prices and contents of the tiers should represent the actual cost incurred in delivering the particular benefit at that level.

• Entry-level tiers might give a digital copy of the game or an uncomplicated digital reward.
• Mid-range tiers may include elements such as a soundtrack, an art book, or other additional features.
• High-end tiers may include items such as collector’s pieces, in-game credits, or the potential for infrequent rewards.
• Features associated with premium tiers typically involve participation in the game’s launch party, receipt of particular artwork, and opportunities for dialogue with developers.