First, this really isn't much newsworthy in any way, the "news" might as well have been:
Publisher asked Obsidian to give them $1 Billion, Obsidian said no. It might be rather pathetic that they tried, but if someone is stupid enough to take a deal like that then eh...
Fans should most definitely not decide what gets made - that would mean the death of creativity.
And I don't see quite how artists aren't currently entitled to the 'sweat of their brow'. Publishers are unlikely to make average profits that are significantly higher than the standard return on investment on the sum of money they spend on the game. It may well be the case that developers don't make particularly huge profits, but that's because they are essentially groups of workers with small capital investments - their main concern is to pay decent salaries.
Second, people are actually arguing against the "KickStarter" funding model, really? I mean, I see how it might in some ways put more risks on the consumers and get that argumentation.
But in what POSSIBLE way would it be worse for developers or the games involved?
I especially don't get Lumpys arguments throughout this entire thread, it is like he wants the publishers to succeed because they are "responsible" for making all the games and developers are just some paid workhorses towards that goal.
The worst thing that might happen is that some projects don't get released or we get some more "Valves" or "Mojangs" around able to stand on their own. If they budgeted correctly they will have their entire development budget accredited for and will not have to worry about that and if they get funded they'll know there is a demand, they will have total creative control over their game, they will have ownership upon their IP so there won't be publishers hawking off franchises like Gothic or similar to other developers because they offered to work cheaper and they don't get that games are creative works as much as "products", and they will get up to ~70-90% off of all the profits they make with selling the game, since the development has already been largely funded that will be DIRECT profit that can be put towards new projects (just one breakout hit like MineCraft or similar and the developer is "made" instead of their publisher) and not just some bonuses or 3-5% royalties that publishers give out if a game sold exceptionally well.
I really don't see any downside to this model in that way if a game gets made.
True but if a product is a great sucess it leads to a franchise which leads to more paid work hours. Also how many times can people donate up to 5 to 10k on projects just to see our favorite games? I allready spent over 300$ on kickstarter myself (while generally spending less then a $100 on games per year) majority of which went to Wasteland 2 and Eternity, because I want this projects to suceed but I cant afford paying over 100$ for every single game I want to see and unfortunately if those games wont see good sales post release they will probably have to rely on another donation run. I hope that if we follow this no publisher road then the ammount of people who donate to this projects will greatly increase otherwise I see people eventually just running out of big sums of money to give based on nostalgia alone.
The beautiful thing about it is that you don't have to. It is very likely not the same people/communities putting 10k/5k into the campaigns (other than Notch), while you might really really like a good turn-based RPG someone else might really really like a new oldschool Adventure game or shooter etc. and it's not always the same people funding everything. If you like something other people have funded when it's done you can still buy it and contribute to profits directly.
That's entirely different. Do note that all successful Kickstarters are straight genre games - there's not a hint of innovation or experiment. I very much doubt Thief, or Fallout 1 for that matter, would've ever been successfully crowdfunded.
Uhm...
Faster Than Light (this one is already done):
http://www.kickstarter.com/projects/64409699/ftl-faster-than-light/ (and I'd like to point out that it is doing rather well, being at the Top3 of the "Top Seller" list on Steam for the past week, so there goes that "most interested people will chip on to KickStarter and there are no more sales to be made" argument)
Castle Story:
http://www.kickstarter.com/projects/902505202/castle-story/
Banner Saga:
http://www.kickstarter.com/projects/stoic/the-banner-saga/
Code Hero:
http://www.kickstarter.com/projects/primerist/code-hero-a-game-that-teaches-you-to-make-games-he/
A new game called "Blackspace", which will hopefully get funded:
http://www.kickstarter.com/projects/1035580424/blackspace-plan-dig-defend-survive
Please do tell what innovative "non-straight genre games" came out of publishers in the last 3-5 years, I'll wait.
Regarding success rates on KickStarter, I guess this is a rather interesting Infograph:
http://www.abload.de/img/120824kickstarterfinazkuoc.jpg
You will never EVER get anywhere close to 43% success rate on a Pitch with a publisher, it's more along the lines of 3-5% and with all he negative sides that entails.
There's also certain publisher influences in regards to marketing, for instance this is a recent example of what can happen to a game within a single year to "make it more marketable":