Who is Funding ED?

Asmodi

A
Might have been answered elsewhere but I am curious as to where the funding is coming from to get this game over the final furlongs.

It was a comment someone made on the forum the other day (cant seem to find it now) about ED now having raised X amount of millions but it struck me that £3 million will not last long on a game of this magnitude and also their was another thread about no publishers wanting to back it etc hence it went to crowd funding.

Not sure how many backers there is but even taking 60k @ £100 that's still only £6 million which again wont see this to the release day.

Is ED now being fully backed by publishers, investors (proper investors) to get it over the line?

Not meant to be negative, etc...Just never dawned on me that ED might be getting funded as it goes along.
 

KING5TON

KING5TON
Well they raised 1.4 million pounds or so through kickstarter, this was how much they asked for at the time to fund the core game's development. The game had already been in development before the kickstarter as a side project (so they didn't start from scratch).
Everything except Planetary landings and 1st person gameplay should be funding by the kickstarter money (if it isn't how did they expect to fulfill their kickstarter obligations?).
Since kickstarter ended they've had a further injection of 1 million pounds from backers.
FD also received some additional investment last summer but I can't remember how much that was (vaguely remember 65 million but might be wrong).
FD also have other properties out there such as Zoo Tycoon for Xbox one that was built on the same engine plus profits from other games they've produced.
I assume that profits from previous games go towards funding the development of new games (as that's how businesses are run are they not? FD isn't a fledgling company after all).

Operating costs shouldn't be massive for the game's development. They are using their own engine. I assume the team size isn't massive so wages shouldn't be that high (they'd have to pay these anyway if E: D didn't exist).

Going forward there will be be more funds generated from sales when the game releases and if it's successful from the expansion packs sales. Plenty of games manage just fine with making money off the sales of their game, E: D shouldn't be a special case. Since E: D has been funded by backers and is sold directly (not through middlemen) then FD haven't had to pay as much towards developing the game and have a bigger share of the profits than other games with publishers receive.

Outside the costs of developing the game (which have been more than covered so far IMO) there is an ongoing cost for servers to run the MP side of the game. This should be relatively minimal since they utilized P2P for the MP side of things rather than dedicated servers so the amount of servers FD run shouldn't be that many.

Additionally there has been talk of Cash for credits and cash for other stuff (vouchers and the like, check the DDF archive thread).
Hopefully FD won't gouge on these things and get too greedy.
Since they don't have a publisher for the game and are publishing themselves with the support of backers it would seem hypocritical to pull the same crap that publishers like EA and Activision pull since DB has been outspoken about publishers and their love of the bottom line rather than making games.
 
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Pappy55uk

Pappy55uk
I think David Braben said somewhere its just as much his own personal project. One way or another it was going to get made.
 

Scoob

Scoob
My, very basic, understanding was that the KS campaign raised awareness as well as, literally, the cash to kick-start the project. With a fair number of people willing to pay up front for an unreleased project - demonstrating the interest in the game as well as genre - corporate investors likely saw a business opportunity, projecting that if people are buying before the game is even made, many more will want the finished product so they'll get their return.

Of course, these corporate investors won't be making any money off the early backers as we've paid for the game and, many of us, all future expansions too.

My worry is how much influence these investors may have. Hopefully the KS funds allowed Frontier Developments to retain TOTAL creative control on the project. I.e. they can in no way be influenced to jump on say the micro-transaction band wagon which is so popular today. Not saying it's always a bad thing, but IF such a thing were to happen I'd trust Frontier Developments / Mr Braban to do a better job than some corporate suit.

Regardless, for a game of this scale, the KS funds needed topping up. However, I really think that the fact that the funds didn't reach the astronomical heights of Star Citizen has been GOOD for the project as a whole. By this I mean that Mr B. and the team appear - from my external perspective - to be very good at managing resources etc. and staying focused on set goals. At the same time they've also incorporated the great ideas from the community. After some initial worries, I'm actually rather impressed by how much they've delivered already - a game is taking shape.

Anyway, I'm prone to ramble so I'll stop here :)

Scoob.
 

Asmodi

A
Cheers Scoob

One of my main fears is not quite being able to get over the line and a big publisher coming in and offering to kick it over the line but asking for loads of influence for a small percentage of cash.

Think "Ransom Strips". The little pieces of land that go for just as much as the rest of the building project so they can get it finished.

Im hoping they can get this over the line without relying on a major publisher, although I also know having a major publisher on board opens so many doors.
 

ZeeWolf

ZeeWolf
Frontier have been running for 20 years. As with all companies in the UK their last posted financial details are on line for the public to view, they have equity (quite a bit more than £3M last time they posted)

Elite is still bringing in cash from folk joining the Beta, once we hit standard Beta and Gamma it really does start to become an impulse purchase so I'd expect them to generate substantially more.

They seem to be running Elite quite tightly with regard to allocating resources, there isn't much yet in the way of marketing, they haven't created satellite offices (As far as I know) to R&D this exciting new feature or whatever. I think many of us feel the core game (the first release) hopefully won't require a budget in-line with GTA VI due to it's use of procedural generation techniques to render the larger universe and less demanding requirements on hand made content, but I know others would argue.
 

Celonius

Celonius
First of all, E: D got more money than SC in their Kickstarter. Just this point because some people thinks that is the opposite.

Then, a difference with SC, E: D use Kickstarter to show the demand to FD. When it succes the kickstarter, FD sold action for 50.000.000$, who probably went to Elite: Dangerous. So, in the final E: D has more money than SC. Another point is that SC has to create a development studios from the beginning. Get the office, personal, etc... E: D has the FD companies and FD employees.

So, this answer your answer. And if you dont believe lets compare with SC Arena Commander and see who is better.

Scoob said:
Regardless, for a game of this scale, the KS funds needed topping up. However, I really think that the fact that the funds didn't reach the astronomical heights of Star Citizen has been GOOD for the project as a whole. By this I mean that Mr B. and the team appear - from my external perspective - to be very good at managing resources etc. and staying focused on set goals. At the same time they've also incorporated the great ideas from the community. After some initial worries, I'm actually rather impressed by how much they've delivered already - a game is taking shape.

Anyway, I'm prone to ramble so I'll stop here :)

Scoob.
Click to expand...

Thas NOT TRUE. E: D has more money than SC, show the financial movements of FD. The difference is that when E: D close his Kickstarter campaign, who earn more money than SC, he decide not to want more crowdfunding because he has the support from FD. SC needs to earn more money beccause has no support, thats why he always put how money they can in theiur website. Or all this goals from every million. Chris Roberts NEEDs the money, thats why he has all this marketing. Braben has th money so there is no need for all of this.
And as I said before, FD has the office, has the employees... While, SC has to buy offices, employees...

E: D has more resources than SC, and you can see that if you compare both alphas.
 
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Asmodi

A
Celonius said:
First of all, E: D got more money than SC in their Kickstarter. Just this point because some people thinks that is the opposite.

Then, a difference with SC, E: D use Kickstarter to show the demand to FD. When it succes the kickstarter, FD sold action for 50.000.000$, who probably went to Elite: Dangerous. So, in the final E: D has more money than SC. Another point is that SC has to create a development studios from the beginning. Get the office, personal, etc... E: D has the FD companies and FD employees.

So, this answer your answer. And if you dont believe lets compare with SC Arena Commander and see who is better.
Click to expand...

Who mentioned anything about SC? Seriously m8 that was a little bit OTT there, you seem to have major issues with SC. :eek:
No one mentioned SC. I couldn't really care less about SC at the moment.
Why do you hate SC so much? Did someone who works with SC do something to you?
Would you like a Hug?
Some 1 to 1 counselling?
Are you liable to do something rash against SC that I might need to contact the authorities about?
 

Celonius

Celonius
Im tired of this believing that SC has more resources than E: D only cause CR shows everyone how money he earns from the backers. Braben has no need to do that, he earned the money to show FD that there exist a demand and FD give him the money. I only compare the two competitors.

Anyway I show u how E: D has more resources and ofc better game than the Arcade Commander of SC.

Anyway can understand than after Arcade Commander
 

Philip Coutts

Volunteer Moderator
Philip Coutts
NASA, they can't afford a proper space program anymore so this is it. I heard they are very annoyed because planetary landings are a future add on. Something to do with wanting to do another moon landing.....;)
 

Asmodi

A
Philip Coutts said:
NASA, they can't afford a proper space program anymore so this is it. I heard they are very annoyed because planetary landings are a future add on. Something to do with wanting to do another moon landing.....;)
Click to expand...

When are they going to do the first moon landing? ;)
 

Scoob

Scoob
That ED raised more than SC on Kickstarter has no relevance at all really. My understanding was that Cloud Imperium only added the separate Kickstarter campaign to help those who, for whatever reason, were not able to pledge directly via the companies site. I backed SC as well as ED, but I've only ever backed ONE Kickstarter project.

So, HOW they raised the money really doesn't matter, the fact that SC backers have pledged over 40 million dollars thus far is what counts. And good for them, Chris Roberts and the Team seem a decent bunch, if a little less focused that Mr Brabens team IMO.

Btw: the entire MOON is fake...there is no dark side, the moon is like one of those houses we see in westerns with the fake front, the back is HOLLOW.

Scoob.
 

deusx_ophc

deusx_ophc
Asmodi said:
Might have been answered elsewhere but I am curious as to where the funding is coming from to get this game over the final furlongs.

....

Not meant to be negative, etc...Just never dawned on me that ED might be getting funded as it goes along.
Click to expand...


from their 2013 annual report, cash flow, that is PRE-IPO period mind

"The overall impact was an increase of £5.47m in cash and cash equivalents to £7.16m, being a positive
staging point for the Group’s investment and growth plans."

there is plenty in the bank & tank for FDEV - obviously they are also trading on the AIM now. FDEV have plenty of investors from this forum, too :D

financially FDEV has been very prudent and successful. the year end 2014 report to be published in dec 2014 will show so.

they have also made a number of announcements regarding new, significant contracts signed with 3rd parties for game development. 2014+ will be GREAT years for FDEV, David Braben, the team and all ED backers and players.

tl;dr

a) FDEV finance themselves by generating healthy profits for over 20 years
b) FDEV used kickstarter as additional funding but mainly a proof-of-concept.
c) serious amount of development was already done in form of their Cobra game engine (and more)
d) FDEV IPO

FDEV has significant cash reserves for ED and the planned transitional period from 3rd party developer to fully flegded mutli-platform & service publisher. if they continue to perform as the last 20 years, the investment side will take care of its own :cool:
 
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Scoob

Scoob
I think that's the key really. FD are a long established and profitable company with a proven track record. The core team have worked together for some time, so that particular dynamic is already in place. The KS campaign proved to them, as well as backers, that the project was a viable one. Having some (game) assets in place already to help make the pitch doesn't hurt.

I think Mr Braben and the people at Frontier Developments are bright bunnies, from both a development and business perspective, which is why I have a pretty positive feeling about the game going foward.

There's no doubt that the people working on both ED and SC are passionate about their projects, this can only be a good thing. However, it must be backed up with the appropriate disciplines of course :)

Scoob.
 
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