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.

December 7, 2011
"Indie capitalism is, above all, a maker system of economics based on creating new value, not trading old value."

My former BusinessWeek colleague, Bruce Nussbaum, writes a hopeful Fast Company piece on the rise and rise of indie capitalism. The quote above, with its reminder of the importance of actually creating new value rather than just shifting all that was old around the place, reminded me of a great episode of This American Life from earlier in the year. In How to Create a Job, Ira Glass and his team of intrepid reporters attempted to get behind politicians’ trumpeted jobs plans. And, as Adam Davidson memorably said on attending the International Economic Development Council conference in San Diego:

This is what drove me crazy about this conference, actually about the whole profession of economic development. They’re not creating jobs. They’re just moving jobs around. Arizona steals a company from California by offering some tax break and lighter regulation. Then Texas cuts taxes a bit more, does away with even more regulation, and gets the company to move there. That doesn’t help anything. We still have the same number of jobs. But now we have this race to the bottom. Who can cut back government services the most? Who can eliminate the most regulation?

Creating, not trading. Creating, not moving around. Creating, not indulging in a pellmell race to the bottom. Let’s do that.

November 21, 2011
"Socialism for the rich, capitalism for the poor: that is how our economies work."

In The Corporate Welfare State, George Monbiot discusses the state of government and policy in the United Kingdom, in particular the inequality that exists in the way that the rich (the 1%) are treated in contrast with the poor (the 99%.) His conclusion is nigh on devastating: 

Limited liability, offshore secrecy regimes, deregulation and government handouts ensure that they bear none of the costs their class has inflicted on the rest of us. They live at our expense, while disparaging the lesser mortals who support them.

[Link via Umair Haque.]

May 12, 2011

British economist Tim Harford has a new book out: Adapt: Why Success Always Starts with Failure. In this short, nicely designed promotional video, he talks about three things you need to know about learning from failure. Along with a look at Google (though honestly, all writers everywhere need to pinky swear they’ll stop talking about Google’s 20% time), he also analyzes the failure in the Iraq War and explains how Twyla Tharp was able to transform the potential disaster of the musical Movin’ Out into a Tony Award-winning success.