It's not "Free money." They also have something to lose by pitching these games like this. For one, they lose on the sales to those 70k players by giving them the game at a lower price (70k X $10 extra per game = $700,000). Secondly, they have to deal with the shit/entitlement that many of these backers seem to have. I'm a backer and I can't handle some of the stuff I read on these sites. That doesn't mean that they can't keep their fans in the know, it just takes away that pressure to pander to a group or to keep everyone happy (romances is an example).
Why is it that the bigger companies aren't going for Kickstarters? Like Blizzard et al. Yes, one might argue that they're financially successful and so it looks poor on them to do so (another reason that OEI can't ride that wave forever), but the other reason is that it just doesn't make sense financially.
I can see them doing contests or some of the higher priced stuff from their own website to help with future games, but if I were a company raking in the dough and had enough money to start funding my own games, I wouldn't kickstart them.
As for advertising, D: OS has shown that it doesn't matter. Word of mouth is the new advertising in gaming. That and steam. Obsidian already has enough clout that when it announces a game, the dorito's crowd is already there to hear it and the fans are there to share it.
So much wrong.
Big publishers aren't going for crowdfunding because it is pocket money. They are not interested in earning 10mln they are interested in earning 500mln or 1bil or 2bil. Last tomb rider by SquareEnix was supposed to sell 5mln to be considered success. Sales below that was considered failure.
Secondly big crowdfunding exist on direct dev-consumer relation. Any publisher involvement means devs don't need money and they want to scam your out of your money. Almost every kickstarter that mentioned creating something to show to publisher failed. Every kickstarter that involved publisher failed.
3rd. IT IS FREE MONEY. Here is brakedown how games are funded:
- your own money. Which means if your game will fail you will go bust.
- loans. Which means like above but worse (Larian used loans to start being independent)
- publishers/investors money which results in your work not being yours (or most of royalties going to inv/pub)
And here is crowdfunding:
- not your money, no loans, and you own IP.
And even if you sell 0 or you failed to deliver hype you still lost nothing.
So no,
crowdfunding is free money. That 700k you mentioned lost sales first need to be counted with development cost you forgot about at you will see that if you count that it will be in the end 0.
So we have two 0s. One with risk and one without any risk. So which 0 do you think is better ? Free 0 or risky 0 ?
That is completely beside something you completely don't count. FREE MARKETING.
LEGION of people who will talk, write and tweet about your game and if your game is good then you can be sure that this Legion will make your sales skyrocket upon release (like in Larian case) and all that without spending even 1$ on marketing.
So crowdfunding money is not only free but also can make your game from 0 to hero in therms of awareness.