Originally Posted by TheMadGamer
I've been wondering about these kickstarters myself. And before I say anything further let it be known that I have nothing against kickstarters. They represent capitalism at its best when saying as much these days isn't exactly a popular thing to do.
Under a "normal" business arrangment, where you have a developer and publisher, from what I understand, the publisher funds the devloper and the publisher is paid back those funds plus a pre-determined profit after the game ships. The developer keeps whatever is left, if anything.
Under a kickstarter arrangement, fans fund the project with a zero cash-based return. You get the game and depending on how much you donate other various items and perks. But the devlopers are free to hold on to the investment cash and use it to develop the game and I guess, keep whatever might be left over - plus any cash that may come in from sales of the game after it is finished.
Kickstarters seem to be a double-win for the developers.
Am I correct on how I view this?