Crowdfunding has become a pivotal tool for gaming developers, allowing them to bring unique concepts to life while building dedicated communities around their projects. Here, we’ll explore five noteworthy crowdfunding success stories, each showcasing the potential of crowdfunding to bring innovative games to market.
What is Crowdfunding?
Crowdfunding is a way for companies or individuals to raise money by gathering small contributions from a large group of people, usually through online platforms. This funding model has become invaluable for gaming startups, allowing them to engage with fans early in the development process and secure the capital needed to turn ideas into fully-fledged games. Alongside crowdfunding, other funding options like angel investors, venture capital, loans, and grants also play a crucial role in the landscape of financing alternatives.
Types of Crowdfunding in Gaming
In the gaming industry, crowdfunding generally follows one of three models:
Rewards-based crowdfunding: Backers receive perks, such as early access or in-game items, as seen in many Kickstarter campaigns.
Equity crowdfunding: Investors gain a stake in the company, popular on platforms like StartEngine. Crowdfunding investment in this model involves understanding the rules and restrictions, including withdrawal policies and the trading of shares.
Donation-based crowdfunding: Supporters fund projects without expecting financial returns.
Each model offers benefits and caters to different types of backers, with rewards-based crowdfunding being especially prevalent in gaming.
Crowdfunding Platforms
Crowdfunding platforms are online websites or apps that facilitate the crowdfunding process, providing a space for project creators to showcase their ideas, set funding goals, and share their campaigns with potential backers. These platforms act as intermediaries, connecting creators with a community of supporters who are eager to invest in innovative projects. Popular crowdfunding platforms include Kickstarter, Indiegogo, GoFundMe, and Seedrs. Each platform offers unique features and caters to different types of campaigns, from creative projects to equity crowdfunding. These platforms often charge fees for their services, such as transaction fees, payment processing fees, and platform fees, which help maintain the platform and provide support to users.
Benefits of Crowdfunding
Crowdfunding offers several benefits for both project creators and backers. For project creators, crowdfunding provides access to funding, market validation, and community engagement. It allows them to test their ideas, gather feedback, and build a community of supporters who are invested in their success. This can be particularly valuable for early stage companies looking to raise funds without giving up significant control or equity. For backers, crowdfunding offers the opportunity to support innovative projects, invest in early-stage companies, and earn rewards or returns on their investment. By participating in crowdfunding campaigns, backers can become part of a project’s journey, gaining a vested interest in its success and potentially benefiting from its growth.
Crowdfunding Success Stories in Gaming
Torment: Tides of Numenera
Inspired by the iconic Planescape: Torment, Torment: Tides of Numenera by inXile Entertainment sought to create a spiritual successor to the classic RPG. This campaign became a huge success, raising over $4 million on Kickstarter from individual investors who contributed to the campaign. The game drew in backers by promising deep storytelling and a richly crafted world, appealing to fans of narrative-driven RPGs. Torment: Tides of Numenera was released in 2017 to positive reviews, fulfilling its goal of reviving the beloved Planescape experience.
RimWorld
Created by Ludeon Studios, RimWorld is a sci-fi colony simulation game that combines survival mechanics with unique AI-driven storytelling. Initially launched on Kickstarter in 2013, the campaign exceeded its $20,000 goal by raising over $260,000. RimWorld has since become one of the most popular indie games, praised for its engaging simulation elements and emergent storytelling. Its ongoing development and regular updates have continued to expand its dedicated fanbase.
Prison Architect
Prison Architect by Introversion Software is a prison construction and management simulation game. After securing over $270,000 on the crowdfunding platform, the game saw a significant amount of community engagement, with backers contributing ideas that helped shape the game. Prison Architect went on to sell millions of copies post-release and has remained popular due to its challenging gameplay and frequent updates.
The Wonderful 101: Remastered
Originally developed by PlatinumGames for the Wii U, The Wonderful 101 didn’t find major success upon its initial release. However, a Kickstarter campaign to remaster the game for modern consoles quickly surpassed its funding goal, raising over $2 million. The campaign connected with fans who had wanted the game to reach a wider audience, leading to a successful release on platforms like Nintendo Switch, PS4, and PC.
Pathfinder: Wrath of the Righteous
Based on the popular Pathfinder tabletop RPG, Pathfinder: Wrath of the Righteous from Owlcat Games attracted RPG fans with its ambitious world and complex storytelling. The game’s Kickstarter campaign raised over $2 million, far exceeding its initial goal. Released in 2021, the game was celebrated for its depth, customization options, and faithfulness to the Pathfinder universe, quickly becoming a hit among RPG enthusiasts.
Key Factors for Crowdfunding Success
These campaigns reveal a few common traits shared by successful crowdfunding projects in gaming:
Clear Vision: Each campaign had a well-defined vision and objective that resonated with a specific audience, from RimWorld‘s emergent storytelling to The Wonderful 101‘s unique gameplay. It is crucial for investors to research the various investment opportunities available on crowdfunding platforms to ensure they are backing projects with a clear and compelling vision.
Community Engagement: Developers maintained open communication with backers, fostering a sense of collaboration. This was especially true for Prison Architect, where community feedback directly influenced the game’s features.
Rewards and Incentives: Campaigns offered enticing rewards, from exclusive items to early access, creating an additional incentive for backers.
Transparency and Updates: Regular updates and transparent communication helped build trust, as seen with Torment: Tides of Numenera, where backers were consistently updated on development progress.
Risks and Rewards of Crowdfunding Investments
While crowdfunding can lead to extraordinary results, it does come with risks. Crowdfunding platforms enable small businesses to secure funding and generate interest. Development delays or unmet expectations can impact backers’ confidence, and not all projects see financial success post-release. However, successful campaigns like Pathfinder: Wrath of the Righteous and The Wonderful 101 showcase how effective crowdfunding can be for projects that maintain backer trust and fulfill promises.
Crowdfunding has empowered developers to bring new ideas to life, connecting them with dedicated fanbases that actively support their projects. As seen with RimWorld, Prison Architect, and Pathfinder: Wrath of the Righteous, a successful campaign can pave the way for long-term success, both financially and within the community. These stories highlight the potential for crowdfunding to drive innovation in the gaming industry and inspire future developers to pursue their unique visions.
