After making a mint from indie blockbuster Minecraft, Markus “Notch” Persson offered to fund development for a sequel to Double Fine’s brilliant Psychonauts. The negotiations were kept out of the public eye, but ultimately fell through when Tim Schafer’s studio asked for more than Notch was expecting. Much, much more.
“I somewhat naively thought ‘a couple of million’ was two million. I had no doubt in my mind that a Psychonauts 2 would earn that money back easily. Turns out [Double Fine] wanted 18 million dollars, haha,” according to Notch. “I don’t have the time at the moment to even try to get educated enough to make an 18 million dollar deal. Perhaps in some distant future when I’m no longer trying to make games, I could get into angel investing. I’ve made one private investment into a game so far, at $100K, and it’s frankly a lot more work than I thought.”
The Financial Realities of Game Development
The financial realities of game development can often be surprising, even to those within the industry. While $2 million might seem like a substantial amount, the costs associated with developing a high-quality game like Psychonauts 2 can quickly escalate. These costs include salaries for a large team of developers, artists, and designers, as well as expenses for marketing, distribution, and post-launch support. Additionally, the original Psychonauts, despite its critical acclaim, did not achieve blockbuster sales, which likely contributed to Double Fine’s cautious approach in budgeting for a sequel.
Notch’s experience highlights a common misconception about game funding. Many assume that successful indie developers can easily transition to funding larger projects, but the reality is far more complex. The leap from a few million to tens of millions of dollars involves not just more money, but also a deeper understanding of financial management, risk assessment, and long-term planning.
Alternative Funding Methods
So it seems that Psychonauts 2 is still not happening for the moment, though Double Fine has said it will “likely explore alternative funding methods that will require multiple sources to make it a reality.” This statement opens up a range of possibilities for how the game could eventually come to fruition.
One potential avenue is crowdfunding. Platforms like Kickstarter and Fig have been used successfully by many game developers to raise funds directly from fans. Double Fine itself has a history with crowdfunding, having raised over $3 million for its adventure game Broken Age on Kickstarter. This method not only provides the necessary funds but also gauges public interest and builds a community around the project from the outset.
Another option is seeking multiple smaller investments from a variety of sources. This could include venture capital firms, private investors, or even partnerships with larger game studios. By diversifying their funding sources, Double Fine could mitigate the risk associated with relying on a single large investment.
Additionally, the rise of digital distribution platforms like Steam and the Epic Games Store has made it easier for developers to reach a global audience without the need for traditional publishing deals. This can significantly reduce costs and increase the potential return on investment.
In conclusion, while the initial talks between Notch and Double Fine did not result in the funding of Psychonauts 2, the situation sheds light on the complexities of game development financing. It also underscores the importance of exploring various funding methods to bring ambitious projects to life. Fans of the original Psychonauts can remain hopeful that, through alternative funding strategies, the much-anticipated sequel will eventually become a reality.
Source Venture Beat
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