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The Little Fighting Game That Could

Lab Zero asked for $150,000 to make a new Skullgirls character, and fans said "hell yeah!" In the process, it exposed a growing disparity between what people think games cost and the truth.

It’s been a bumpy road for Skullgirls, but just one day into its Indiegogo campaign, the game has raised the necessary $150,000--it's at $218,000 and counting--to start adding new characters to its brawler. It’s also the biggest gaming campaign the rival crowdfunding service has ever seen.

The animation-happy 2D fighter, the debut release from Reverge Labs, was already asking for trouble by trying to be a brand-new fighting game. It's an intensely competitive genre with few newcomers. Most fighting games these days are built on established franchises with known characters. Then, much of the team was laid off, prompting a bunch of employees to rebrand under Lab Zero Games last November. As if that weren’t enough, the owner of Skullgirls, Autumn Games, remains in litigation over Def Jam Rapstar, which has complicated efforts to continue work on the game or move it to another company.

Through it all, there’s been one constant keeping the developers motivated.

“We have the best fucking fans in the world,” said Lab Zero Games CEO Peter Bartholow.

Squigly is the first of three characters Lab Zero Games is hoping to produce for Skullgirls, depending on its total funding.
Squigly is the first of three characters Lab Zero Games is hoping to produce for Skullgirls, depending on its total funding.

This connection motivated the idea of picking up where it’d left off. Previous plans were brought back to the table, and the team opened its pitch with Squigly, a ranged stance character that leverages singing in her rather unique moveset.

“We were at lunch at Curry House [in Los Angeles],” said Bartholow, “and people were like ‘I think we ought to try it because...I don’t know, why not?’"

It’s not as easy as flicking a switch, though. While Autumn Games was supportive of Lab Zero Games’ desire to expand Skullgirls, due to the continued litigation, providing the financial backing to do so was out of the question. Big problem. The concept of pitching the idea to fans came up, but the studio was forced to back off for a few weeks, following the explosive response to the game’s chance to be included in the EVO 2013 fighting game tournament. To secure a spot at EVO, fans raised money for breast cancer research. Skullgirls fans raised an incredible $78,000, but it wasn’t enough to topple the dedicated fans of Super Smash Bros. Melee, who raised a massive $92,000. It didn't seem right to ask the community for more money just after it had given so much to a great cause.

The Indiegogo campaign went live on Monday morning, but articles were up on websites ahead of time. This included a Joystiq story with the headline “Skullgirls dev wants $150,000 in crowdfunding for new character,” which prompted a series of comments from users shocked at the sticker price.

“$150k Christ on a bike. I've overseen whole projects that cost less than that," said one commenter.

“Its just a character........" said one reader. "how the fuck can making a character for a video game cost more then my house??? 0_o”

“Building is what they can jump off of," said another commenter. "For one character? Even CAPCOM isn't that greedy, they only sell you the same game 3x”

Trying to raise at least $150,000 was picked for a very specific reason: it was the money Lab Zero Games needed. Often, crowdfunding projects will ask for roughly half of what it actually needs to complete what it’s really promising. There is a psychological effect to crowdfunding, and people want to back a winner. A winner is likely to exceed its funding goal, and get closer to its real goal. The Skullgirls developers actually broke down development costs, hoping to persuade people this was reality:

  • $48,000: Staff Salaries - 8 people for 10 weeks
  • $30,000: Animation and Clean-up Contracting
  • $4,000: Voice recording
  • $2,000: Hit-box Contracting
  • $5,000: Audio Implementation Contracting
  • $20,000: QA Testing
  • $10,000: 1st Party Certification
  • $10,500: IndieGoGo and Payment Processing Fees
  • $20,500: Manufacturing and Shipping Physical Rewards

“We’ve always tried to be really transparent,” said Bartholow. “ [...] We’ve always taken a kind of Game Dev 101 approach to all of this. People don’t know anything about game development, and the people that you think might know something, know shockingly little.”

Other developers I’ve talked to back up Lab Zero Games’ claims.

"We’ve always taken a kind of Game Dev 101 approach to all of this. People don’t know anything about game development, and the people that you think might know something, know shockingly little."

--Lab Zero Games CEO Peter Bartholow

“I think a lot of things in game production tend to be a lot more expensive than many people realize,” said former Capcom special advisor Seth Killian, now lead game designer at Sony Santa Monica. “The Skullgirls team has done a great job breaking out some of their costs, and I can certainly attest that a good fighting game character costs a lot more to develop and implement than developing virtually any other similar asset in games. [...] The characters are the game in fighters, and adding more involves a huge amount of intricate assets and one of the most difficult ‘but how does it fit into the rest of the game’ challenges anywhere in development.”

Iron Galaxy Studios has worked closely with Capcom, and is responsible for the upcoming Darkstalkers Resurrection, Marvel vs. Capcom Origins, and others. It knows fighting games. Additionally, the company is building a proper version of the cult hit, Divekick. When I tossed the $150,000 number at Iron Galaxy CEO Dave Lang, here's what he told me:

“I don’t have any particular insights as to how the Skullgirls team works, but I can tell you if we were doing a similar game there would be two major time sinks: new frames of animation and time required to balance the game.

The frames of animation are very expensive for a couple reasons, but at the end of the day it gets down to volume. Say you need 500 frames of animation per character (arbitrary number, I don’t know what Skullgirls frame count per character is), you actually should budget for 1,000 frames of animation in time and materials because for a 2D fighter the animation is the gameplay, and you will need to rework a lot of the sprites to have the game play the way you want. If you were to outsource that many frames of animation you’d pay $20-$30/hour for that, and at that resolution/complexity each person working on them would get around 4 frames of animation done per day (these are highly involved sprites). That puts the cost of just getting the sprites done anywhere from 40k-60k USD. Keep in mind this will take time, and while you’re waiting for the art to get back from the outsourcer you’re still paying salaries, rent, internet, insurance, etc., so sunk cost for just the art itself is probably gonna net out to 90k USD.

Once you get everything in the game, now you need to balance it. And balancing a fighting game is a “n-squared” problem, meaning each additional fighter you add makes balancing the game much more difficult (and therefore take more time/people) to balance. This takes a long time, even with Skullgirls (now) 9 characters. Every studio has their own cost structure but you can safely assume each individual game developer costs their studio around 10k per month (including rent, insurance, etc.). This number will vary wildly for any given dev, but in the US it’s as good a rule of thumb as you can hope for. Sounds like the Skullgirls crew runs a pretty lean ship so let’s chop that to 7,500k/month for them. If there are 5 people on the team (not sure if this is right, but I can’t imagine doing this with less people so let’s call it 5), that’s 37.5k/month for them. If your budget is 150k, that gives them about 2 months to balance the game, which isn’t really a lot of time.

We haven’t even touched on audio, UI, etc. All that stuff adds up. This is why I think 150k is a bargain."

That’s a lengthy explanation related to a minimal amount of ignorant complaining about content that was funded almost immediately. Still, crowdfunding has created a fundamental misunderstanding about how much it costs to make games. Skullgirls ultimately cost about $2 million, and $2 million is not that much money, especially when you’re paying a number of salaries and running a company.

The $150,000 for creating Squiggly, for example, already takes into account reduced salaries for everybody involved. Most of the staff is going to be making roughly the equivalent of $600 per week. That's unlikely to change. That isn’t much in the city of Los Angeles, where most of the staff is located.

“Our guys are pretty close to the edge financially,” said Bartholow.

One way Lab Zero Games hoped to curb its monetary stress in the days ahead was launching through Indiegogo, not Kickstarter. On Kickstarter, projects have to wait weeks after funding closes before it actually shows up in a bank account. Indiegogo also takes less of a cut. On Indiegogo, that money starts coming in after hitting the goal. When I spoke to Bartholow yesterday, it had collected about $34,000.

Fortunately for the company, the money keeps coming in, too.

“We put the stretch goals on there because it’s...a thing that you do?” he said. “We tried to design the stretch goals in ways that would be appealing to our fans.”

It’s already past the first stretch goal of $175,000, meaning it'll get to create a specific stage and story section for Squigly. The next stretch goal is much further off. At $375,000, it will introduce the first male character into the game’s lineup, Big Band. Additional stretch goals include a stage and story for Big Band, fans voting on yet another character, and more. Fans are loudly asking for a Vita port, which the studio is considering, but that specific demand depends on how much ultimately comes in by the end.

And even if you don't contribute to the total, you'll reap the rewards. For the first three months, each funded character won't cost a penny. Microsoft and Sony charge for download codes, not to mention the logistical nightmare associated with distributing the codes to backers. Zero Lab Games figures the promotion will drive people to pick up the original game, in case they missed it the first time around.

Patrick Klepek on Google+

296 Comments

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Dberg

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I don't get how the Internet can be up in arms about the new Tomb Raider, while this pedo bait of a game continues to lead a healthy life.

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lurkingsalt

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@dberg said:

I don't get how the Internet can be up in arms about the new Tomb Raider, while this pedo bait of a game continues to lead a healthy life.

WTF?....... Please stay on topic.

Anyways, I have learned so much about what it takes to get this done and I hope everyone on the dev team doesn't get burned out. Reduced pay etc, it's so easy to see how much passion you have for this franchise. I hope all the sacrifices are worth it.

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ThunderSlash

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Edited By ThunderSlash

I want that TF2 hat for some reason...

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Kaineda77

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That was really interesting, thanks Patrick.

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leebmx

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Edited By leebmx

@donpixel said:

@superkenon said:

@donpixel: So basically, Giant Bomb is worth it because you like it. Well, guess what Skullgirls fans like.

I'm not a fan myself, but it seems reasonable to me. Perspeeectiiiiiiiiive!!

I say unlike Kickstarters, Giantbomb is a service and it is a non-speculative product, meaning: It actually exist and its being running properly for some time now.

Skullgirls is a game which actually exists and has been running for some time now...

EDIT: Also Kickstarter is no different from any other way of raising investment for a business, it is just done via small donations rather than by large corporations.

How do you think an Internet Start-Up, or new business venture raises money? They go to investors or private equity with a plan for what they want to do and ask for money. If people like their ideas they give them money.

Of course the big difference is that Investors look for a return on their money, but they are investing a lot more and profit to an investor does not always have to be measured in cash.

People who are investing in Kickstarters are doing it because they want to fund games they think they will enjoy which might have little chance of finding money elsewhere. When it works it is a brilliant chance to cut out publishers and managers and go straight to the fans. - In a way it is capitalism at its most pure.

Sure, sometimes it doesn't work and games don't get made and people lose their money. However, this happens in the real world as well. There are countless stories of investors funding projects which don't get completed, or whole states funding games which never finish, Should banks stop lending and investors shut their wallets?

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deactivated-5f71e1dc474f5

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Interesting read, enjoyed the trip into the Lang Zone aswell.

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newmoneytrash

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Rad article. It's a lot of things I have never thought about before. It makes me appreciate smaller studios a lot more.

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Plipster

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Hey...guys...guys...isn't Skullgirls a little sexist? Fight the patriarchy.

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Rolyatkcinmai

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Edited By Rolyatkcinmai

did this article just try to say the entire thing was nonprofit, because if so thats hilarious

Nope. Probably should actually read it.

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Y2Ken

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Edited By Y2Ken

Y'know, I might have to pick this up. It's always looked cool and has a decent following, and seeing stuff like this makes me more endeared towards the dev team.

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Shinryu

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Edited By Shinryu

Log in to account and come face to face with a inbox full of people flaming me for my opening comment with replies along the lines of "ZOMG DUDE READ ARTICLE!!"

Can always count on this community to jump to assumptions, I have and did read the article and i understand its points about costs of creation and the opinions of insiders on how this pricepoint is actually a bargain.

But in the spectrum of things, 150k for a character in a game is a ridiculous sum of money to me.

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yellownumber5

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Edited By yellownumber5

48000 for 8 people for 10 weeks is 15 dollars an hour at 40 hours a week, or an equivalent of 28,800 a year. That's about as much as school teachers make, and both of which (teaching and game programming) we know work way more than 40 hours a week.

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breenmachine

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@whirblewind: I think he never brought that up because it wasn't the point of the article. It's about the real cost of indie game development, not OMG Boobs.

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Cybexx

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Edited By Cybexx

The thing this article doesn't mention is that the reason the character is only 150k is that she was partially finished at the time the layoffs happened.

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TheJasonSigler

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Edited By TheJasonSigler

Fascinating read, Patrick! I admit to thinking that cost was ridiculous when I first heard about it, but the breakdown you got via Dave Lang is eye-opening. More transparency in the financials and numbers behind games would certainly help me to know that my money is going to the right people when/if I decide to pick up a game at retail versus used or through other means.

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King9999

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I took the liberty of bringing this article to Shoryuken.com's attention. It's on their front page now.

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King9999

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@cybexx said:

The thing this article doesn't mention is that the reason the character is only 150k is that she was partially finished at the time the layoffs happened.

It was mentioned on the Indiegogo page that the $150k includes the time and resources already spent on the WIP Squigly. Basically, all this means is that it costs even more to create a character.

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Chibithor

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@king9999 said:

@cybexx said:

The thing this article doesn't mention is that the reason the character is only 150k is that she was partially finished at the time the layoffs happened.

It was mentioned on the Indiegogo page that the $150k includes the time and resources already spent on the WIP Squigly. Basically, all this means is that it costs even more to create a character.

From the Indiegogo page, on the cost of Big Band:

Why is Big Band $200,000 instead of $150,000? Because we haven’t even begun to work on him, meaning he’s going to need at least an extra month of development time, as well as extra money to cover the additional rewards needed to fund him.

Also, on the Shoruyken page there's a comment detailing what the team members are doing which has been asked here as well.

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deactivated-64b71541ba2cd

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Insightful. Surprised to see the breakdown including what employees likely earn.

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nerdmotron

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Great Article Patrick.

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reisz

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Edited By reisz

Thanks Patrick, I am supremely interested in the nuts and bolts behind things like this, it's given me a better appreciation for the Skullgirls team. Another really good read man.

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Zlimness

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@dennistm said:

Am I wrong or does 48k sound really low for 8 people for 10 weeks? Technical staff no less.

It's really low. 64k per sounds more realistic.

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Nictel

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Wow some real insight here into game development and how budgets get bigger and bigger.

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Matoyak

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Edited By Matoyak

@yellownumber5 said:

48000 for 8 people for 10 weeks is 15 dollars an hour at 40 hours a week, or an equivalent of 28,800 a year. That's about as much as school teachers make, and both of which (teaching and game programming) we know work way more than 40 hours a week.

Yup, there's a reason in the development space it's a well-known fact that for semi-equivalent jobs you will often get paid double in a different field than what you can make in the games industry. That thought is built in to the game design and game programming curriculum at basically every college that bothers having said programs.

For further perspective if this math checks out: I work as Customer Service at a sporting goods store. (General returns/exchanges and cashier-work). I am paid roughly 9.50 USD/hr ('cause I've been with the company 2+ years, my pay was boosted .50 cents up from the .75 cent bump for moving up from regular cashier-work. Woot.) These guys who are in a WAY more technical field are being paid roughly double what I am for my non-technical, non-salaried "field' in which I've only been working for 2.5 years.

That's kind of nuts.

@hyst said:

Sure, developers probably often do spend a lot more on things than we think, but that doesn't mean they HAVE to. People can pull of some amazing things when they have drive and vision, but don't have lots of money. It happens all the time, it's not like it's impossible.

However, it also depends on what you're already accustomed to. If you're already used to having a certain amount of money to spend on something, you can easily end up believing that amount is required, and there's no way to get it done for less.

The cost of this stuff isn't quite so arbitrary. Yes, you can cut the salaries down to the bone (and doing the math: they have.), but beyond that, there isn't much to cut from this list. You have to have an office, and that costs rent. You have to pay for cert, and that's a hard number with very little give. You have to pay IndieGoGo's cut. You have to pay shipping on the physical goods. I'm really curious as to what you feel could realistically be cut, or lowered on this list. Heck, I'm shocked it's so low to begin with...those devs must be really tightening their belts.

(Granted, I might have misunderstood you and you were just speaking in general broad terms, or might have even been agreeing with what I'm saying here, it's hard to tell tone via text on the internet. Apologies if I misunderstood in advance).

EDIT: because I'm an idiot and quoted the same guy/gal twice. Derp.

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PsiKick

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Edited By PsiKick
@plipster said:

Hey...guys...guys...isn't Skullgirls a little sexist? Fight the patriarchy.

It kind of bugs me when Skullgirls is called sexist because of its appearance. From what I know of the staff, the lead animator, voice director, and composer are all women. The voice cast is made up of mostly women, some who were inexperienced and are now getting more roles after being cast in a decently known video game. And the story is largely driven by the female characters.

Also a tumblr post from Erin Fitzgerald, one of the voice actresses. Her response to Skullgirls being called sexist:

http://erinfitzvoiceartist.tumblr.com/post/22702400731/my-response-to-calling-skullgirls-sexist

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EverydayOdyssey

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Fantastic article - it's writing like this that keeps me coming back to Giant Bomb and happily paying my membership. Keep up the good work.

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dvorak

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Edited By dvorak
@mmann said:

@logan3 said:

Those development costs that the developers broke down are completely dirty & deceptive. They're relying on the fact that most people won't look further into the numbers once they've broken them down, thinking "Oh, they've provided the numbers." But no, they haven't. You can stop just after analyzing the first number: "$48,000: Staff Salaries - 8 people for 10 weeks." As for the other numbers, they've' exaggerated and rounded them up by a huge margin. 150,000 'is' ludicrous.

Thank-you for the interesting news story Patrick.

So what are the numbers then?

If you're going to call them liars provide a bit more of a line item breakdown, explain why 1,200$ a month per staff member (on average) is where we need to stop analyzing. Is 14,000$ a year somehow a ridiculously high salary in the USA now? The poverty line for a single income house is considered to be 11,270$ so 14,000$ doesn't seem like a massive yearly income.

Where have the numbers been inflated and where is the proof?

The onus is on you as the accuser to back up your statement, not on the company to defend themselves because forums user logan3 said he totally knows they made the numbers up.

Part of the unquestioning acceptance might have to do with the perspective of the interviewer, and his perspective on the value of a dollar.

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Maurdakar

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Edited By Maurdakar

The salary cost seems way to low and the other costs seem too high. So if it's 150k per character the game itself took a couple million to make? I guess that sounds right. I won't be chipping in, but as a fan of Skullgirls I will glady reap the benefits of free characters and purchase any DLC that follows this up.

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chrank

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I just want the PC version :(

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ArjanN

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Edited By ArjanN

I just want the PC version :(

At the $30 reward tier, you get the PC version and beta access.

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Levio

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They're spending $30,000 on the fundraiser itself. It's really unfair to include those costs as part of the "cost of creating a new character".

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Edited By Chibithor

@levio said:

They're spending $30,000 on the fundraiser itself. It's really unfair to include those costs as part of the "cost of creating a new character".

You're right, you could cut the cert out as well, it's a cost they can't avoid but it's not an inherent part of making a Skullgirls character unlike animation etc.

But consider that they want 200k for Big Band, because they hadn't started working on him yet. So to say that the 110k or whatever that goes directly into Squigly represents the cost of creating a new character isn't really true either, as they had already done some work.

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spctre

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This article confirms most of my estimations regarding dev cost structures. Unsurprising, all in all.

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DG991

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Good article and it is nice to see the Verge linking their fan base over to my favorite game related site.

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MagikGimp

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I think my reaction concerning exorbitance here is how IndieGoGo get ten grand out of this. Someone explain to me how they can justify that one, apart from the obvious reason that they bothered to make the company in the first place and there isn't much competition out there.

Also, haven't see any mention of Z0NE at all; yes the Flash porn guy, don't pretend you don't know who. Squigly is based on his titular character and he's tweeted hard about the fund-raiser which is fair enough, the guy has a lot of followers (I wonder why) and he's getting some legacy here. Oh and he did do a Skull Girls porn as you may be wondering so there's that too.

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Chibithor

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Edited By Chibithor

@magikgimp: Indiegogo gets 4%, which would be 6k from the 150k. The additional $4500 would be for processing fees which are 3%. Now that the campaign is far beyone 150k more will accordingly go to indiegogo+processing fees.

(edit: for comparison Kickstarter takes 5% and around 3-5% for payment processing)

I don't know where you're getting that Squigly is 'based on' Zone, all I could find was trivia on the Skullgirls wiki that one of Squigly's palette choices will be colored like Zone.

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rjaylee

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As much as I respect the heart of where all this development is, I still really don't like any of the artwork and general visual design of all these characters or this game.

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Enigma_2099

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Edited By Enigma_2099

Damn... props for being honest and actually TELLING people where the money goes.

That said, if one character costs $150K, how much did the whole game cost to make?

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DCam

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So an interesting point of comparison. How much do people think that the Giant Bomb site re-write cost?

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wmoyer83

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Edited By wmoyer83

150K seems like a lot, but with the way the game industry is today...

isn't this a good thing?

A lot of developers struggle or even go under, so this is a great way to get the content people want, and it helps people keep their jobs doing what they love.

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Ravidrath

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Edited By Ravidrath

@enigma_2099: The original budget for the game was around $1.7M, and that actually only covered the development of the last 7 characters. Because we were being paid much more realistic salaries.

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Murdoc_

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@shintsurugi: It doesn't take 8 people to make one character, and for a small indie studio why are they contracting hitboxing and QA?

That break down is bunk, it was $150k to make the character AND keep the studio in business for that time.

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StarvingGamer

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@murdoc_: Because hitboxing has to be handled by experienced fighting game players for balance and tuning issues. It is cheaper to have outside help than to force the leads to spend all their time fiddling with hitboxes rather than focus on key design.

Konami, as the publisher, requires QA to go through them. The $20k is an unavoidable cost if they want to put out the DLC.

Numerous experienced fighting game developers have stated multiple times that $150k is EXTREMELY inexpensive.

So tell me why it's bunk?

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Edited By GuyMac

Typically I've found that (towards the media and general consuming public at-least), game studios are very "Black-Box" about their development process and costs. Whether this is to protect trade-secrets, or prevent the assets of a game from being leaked, in order to stop a games promotional campaign from being partially deflated before it's even started. Or perhaps even none of the above.

The amount of transparency I've seen from the SG team in this article alone has made me more sympathetic toward their cause, and were I not a poor graduate, trying to force my way into the industry myself, I may have been persuaded to part with some of my money to contribute.

Is this approach of "we need THIS much funding, to pay THIS amount of staff, for THIS long, to bring you THIS content!" completely new to the industry (Crowd OR Publisher funded)? Because I think I prefer its humbled vibe to Capcom's - "BUY IT!..... BUY IT AGAIN!...... BUY IT AGAIN NOW!" sales pitch.

Who knows, perhaps Capcom are in a similar "sympathizable" (if that's a word) situation, and have just been going about it the wrong way. What's the right way? Yet to be seen. But i feel that maybe if they had decided to immediately release a statement with the general vibe of, "DLC costs $xxxxxx to hold on X's online service, whereas we had X MB free-space on the disc, and X-months budgeted development time for extra characters, with X number of staff...etc,etc.....THIS is why it made monetary sense for your damn "DLC" content to be on the disc.", the reception may've been a tad warmer.