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[PATV] Monday, April 16, 2012 - CheckPoint Season 1, Ep. 50: There is No Bubble

GethGeth LegionPerseus VeilRegistered User, Super Moderator, Penny Arcade Staff, Vanilla Staff vanilla
edited April 2012 in The Penny Arcade Hub

Posts

  • FalxFalx Registered User regular
    I was snorting at this the whole way through, trying not to laugh out loud as that would pull the stitches in my mouth and I don't like the taste of blood.

    Good job.

    Hisao? What's the word for when it feels in your heart that everything in the world is alright?
    .

    STEAM
  • El SkidEl Skid The frozen white northRegistered User regular
    Hehe yeah, this was a good one. I always did like the banter between Graham and Kathleen.

    Note to PA content admins: This is showing up on the site as PATS Season 3 instead of Checkpoint.

    mrpaku wrote: »
    my name is precisionk and i'm ten tanks

    wrath God fear traitor evil
  • TleilaxuTleilaxu Registered User regular
    You know it's going to be a good show when Professor Pigglesworth shows up.

    checkpointangrybirds.gif
  • DedwrekkaDedwrekka What Would Nyarlathotep Do? Registered User regular
    Kind of disagree on the bubble thing. Usually, a bubble happens when second and third parties begin to invest in a type of product due to it's popularity, but fails when the popularity diminishes or more likely they realize that pumping money into every stupid idea as a money grab does not in turn make them money.
    Take the boom and bust in the internet economy. People saw the popularity of several giant chains of websites and online marketplaces and began to throw money into projects with no understanding of the underlying principles that made those websites work. Initially, they saw success due to low interest prices set by the federal reserve creating a false boom. They created a company or went entirely digital with their small company and then immediately began public trading, seeing a successful profit from it due to the market interest in "e-companies". Once the Fed set increased the interest prices, the economy started to cool again, and the rampant investing seen in a boom began to dry up. Most of those companies that were built on a poor premise disappeared completely as the bubble began to deflate.

    However, the Kickstarter funding isn't based on trading and third party investing, and many of the companies being funded through the program don't even have public stock options. It's actually an interesting new way of "first party investing" as I'm calling it. The customers themselves are acting as the publisher with the only return being the product. The company making the game doesn't have to even make a profit on the game so long as they don't go over-budget. They could sell a total of 0 games after funding and still be considered a success as they basically pre-sold hundreds or thousands of what are essentially regular and collectors editions. Any purchases of the game afterwords goes entirely to the developer, as they don't have to make a split with the publisher, and they get to keep their IP entirely to themselves.

    So, I'm not really sure that there could be a bubble with Kickstarter. Every funded game is already a success before being made and there's no investors to pay back. Do I think interest in it will cool? Probably, but if it does, it doesn't mean the same thing as when an economic bubble bursts, it just means that those developers don't get funded through Kickstarter and have to go through regular publishers or self-fund.

  • Kathleen_LRRKathleen_LRR Registered User, Contributor regular
    Dedwrekka wrote: »
    Kind of disagree on the bubble thing... it doesn't mean the same thing as when an economic bubble bursts, it just means that those developers don't get funded through Kickstarter and have to go through regular publishers or self-fund.

    Those are all good points. I'm actually concerned what will happen when someone isn't able to deliver, or money is embezzled. I think that will pop the Kickstarter "bubble" as it were.

  • jackaljackal Registered User regular
    Thanks to Yogventures! we will all have a front row seat for a kickstarter crash and burn. Winterkewl will make some money, a few thousand people will lose a little money and the Yogs folks will have egg on their face but keep on making a fortune on Minecraft videos.

  • TofystedethTofystedeth veni, veneri, vamoosi Registered User regular
    I just noticed there's totally some pig sex going on in the Professor Snugglesworth shot.

    steam_sig.png
  • NergyNergy Registered User regular
    Dedwrekka wrote: »
    Kind of disagree on the bubble thing... it doesn't mean the same thing as when an economic bubble bursts, it just means that those developers don't get funded through Kickstarter and have to go through regular publishers or self-fund.

    Those are all good points. I'm actually concerned what will happen when someone isn't able to deliver, or money is embezzled. I think that will pop the Kickstarter "bubble" as it were.

    It'll take A LOT more than that. Embezzling and not delivering on a project comes at the personal risk of the person pitching the project, they are putting their name and face on that project, running with the money would see them hunted down and every penny given back to the backers. Failing to deliver on a product would probably result in the dev either working off his own back to fix the problem or giving back everyone's money. Either way, it's hard for the backers to lose.

    We know people like Double Fine, Mike Mulvihill and other devs are trustworthy and they know they are putting a lot at stake and will most likely delivery a product that will please at least 99% of the backers. Being given free money and told to make a great product is a gigantic incentive to deliver.

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