February 9, 2012
Independent Video Game Raises $643,698 (and counting…)

Gaming world veteran, Tim Schafer and his company, Double Fine Productions, launched a campaign on Kickstarter to raise money for a new “point and click” adventure. They reached the $400k minimum within, well, a day, and showed the genuine power of the crowdfunding mechanism done right. They also launched another warning shot across the bow of the current big gaming world players, which simply do not seem to know how to respond to this shift in the economy—and seem too often to have become far removed from the fans of the medium who put them in positions of power in the first place. Schafer breaks it down beautifully:

Big games cost big money.  Even something as “simple” as an Xbox LIVE Arcade title can cost upwards of two or three million dollars.  For disc-based games, it can be over ten times that amount.  To finance the production, promotion, and distribution of these massive undertakings, companies like Double Fine have to rely on external sources like publishers, investment firms, or loans.  And while they fulfill an important role in the process, their involvement also comes with significant strings attached that can pull the game in the wrong directions or even cancel its production altogether.  Thankfully, viable alternatives have emerged and gained momentum in recent years.

Crowd-sourced fundraising sites like Kickstarter have been an incredible boon to the independent development community.  They democratize the process by allowing consumers to support the games they want to see developed and give the developers the freedom to experiment, take risks, and design without anyone else compromising their vision.  It’s the kind of creative luxury that most major, established studios simply can’t afford.  At least, not until now.

January 30, 2012
"One morning last week, Christopher J. Dodd, the former senator from Connecticut who is now the head of the Motion Picture Association of America, and John Fithian, the head of the National Association of Theater Owners, both spent time on a panel bemoaning the fact that the Web had enabled piracy of filmed content. But elsewhere in Sundance, it was obvious that Web-enabled fund-raising was helping to produce a fair amount of original films."

— Love this piece by David Carr: At Sundance, Kickstarter Resembled a Movie Studio, But Without The Egos. Carr looks at the success of the crowdfunding site, Kickstarter, which helped finance 17 films on view at the prestigious Sundance Film Festival—a whopping ten percent of the entire festival’s slate. He has some good comments from Kickstarter co-founder, Yancey Strickler, who describes the “agnostic” platform he and his team have created: “The people are the curators — they decide what is going to get made.” And that is exactly what has Hollywood executives quaking in their boots.

August 1, 2011
The “Cargo Cultism” At Large in Innovation

As Unbound: The Crowdfunding Cargo Cult explains, a “cargo cult” is a term used to describe anyone who imitates the superficial features of a system without understanding how an offering really works. In this instance, writer Adrian Hon describes the book publishing fundraising website Unbound as a cargo cult version of the popular (and successful) crowdfunding site, Kickstarter. While both are superficially similar, Hon points out some fundamental differences in their design, including a lack of clear goal and lack of clear directions, for starters. 

Cargo cultism abounds across industries and sectors. Hon writes:

Cargo cult thinking in technology products might have worked in the past, when customers really didn’t know any better and you could overwhelm them with slick marketing campaigns, but things are different now, thanks to online reviews and word-of-mouth. Yet they still try, wasting millions and millions on modern-day equivalents of wooden radar towers, or rather, yet more iPhone and iPad imitators.

 It’s a useful term and worth thinking about in the context of innovation. As my colleague Angelo Frigo, who flagged this story to me, added: “We often use analogy too flippantly in innovation and design. This exemplifies the dangers of taking an analogy too far or not far enough.”