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"Funding Unsuccessful
This project reached the deadline without achieving its funding goal on October 28."

So that means they now have $161k and a big laugh?

Sustaining Income by unsuccessful funding? Correct me if I'm wrong.
Actually they get $0 for failing. :(
And rightly so, because they showed VERY little effort during the whole campaign. Just look at other successful KS campaigns, even those that did not have actual game footage (at start).

But hey, looks like David Braben of Elite: Dangerous is making the same mistake. And he won't be the last dev to completely screw his own campaign, either. Some people just aren't able to learn from the mistakes of others.
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GozerTC: Actually they get $0 for failing. :(
People can get their money back if they ask, but that's it. There's no penalty for not reaching a goal.
Err, no, on an unsuccessful KS, people AUTOMATICALLY get their money back. In fact, the money was never taken from them : A pledge is an agreement to pay IF AND WHEN the project gets to its goal, it's not a direct payment. The guy who failed his KS gets 0$

On the other hand, if the campaign is successful, then the guy gets the money, even if he doesn't deliver anything afterward. It's in this case that you have to ask your money back.

Short story : Only pledge if you trust the guy with your money, and know that said money can be lost without compensation if you pledged on a bad project.
Yeah, that's right. I misunderstood the article I read.
Only thing that .. I don't like is the problem that the engine the tech-demo ran in is apparently "lost" somehow. And they seem to want to use the Unreal 3 engine for the new game.

This is a very bad idea. I sympathize with the devs who want the game to come out, and the concept to exist. I even sympathize with the thought that maybe if this game is successful, in the u3 engine, then a new engine can be made for the next game, etc.

But it's a mistake to not create an engine with more intelligent scene-reduction, etc. Because that's how you would show that this type of game actually would look "modern" and "hd" and so on. The U3 engine also would make it difficult to port it well to, say, upcoming tegra4 or similar types of "console" systems.. If you look at the guys who made Puddle, there's a good example of how it would be possible to do it. One engine for all the consoles, pc, etc., and possible to reduce the effects far down without losing "essential" effects that have impact on gameflow. I mean, as the tech-demo run shows - getting ships and planets into the game without extreme particle effects, etc., doesn't necessarily require 4Gb of graphics card ram, and 90000% occlusion overhead. While singularity type effects for light and shields and so on could be added if hardware allowed it. That's how you would expand the market and actually make money off it. Reducing the "complexity" of the game, and selling it to the lowest common denominator, expecting that to tide you over to the next sequel -- isn't going to work.

On that subject.... who exactly owns that engine Mythis(or partially mythis?) used in the tech-demo? Or where is it? Was it ever used for anything?