Frequently Asked Questions - Funding

The Metropolis Project is based on the idea of community funding, otherwise known as "bounty funding" or an assurance contract.  To understand how it works,consider how a game is usually funded: A game studio comes up with an idea for a game and raises money to produce it, usually with the help of a publisher.  When the game is released, the publisher (or other backer) then receives a portion of the proceeds from sales;  Any proceeds beyond the cost of the game become profits for the studio and the publisher.  At first glance then, it appears that the game is funded by the publisher;  But really, the publisher is only disbursing money temporarily, in exchange for a portion of the eventual sales.  It is actually these sales, the individual purchases from fans, that fund the game.
 
With Metropolis we are, fundamentally, financing the game from the same source (the end user);  But with community funding, we reverse the usual paradigm.  Rather than first making a game and selling it, we intend to gather financing from individual community members.  This is done through pledges: members will pledge to donate a certain amount, and when the total budget for the game has been pledged, the pledges will be called in and development will begin.  Since the game will have already been paid for at this point, it will be released for free, along with its source code, when development is finished.

The final budget will depend on what form, as agreed by the community, the game ultimately takes.  However, a very rough estimate for a top-tier game of this type would be ten to twenty million USD.

We believe it is;  although it's a large sum, when put in perspective it's not an unattainable number.  Considering that all commercial games are ultimately financed from the same source (individual sales), and manage to recoup amounts far beyond their initial budgets, it's not unreasonable to think a community game could do the same.  In fact, since almost all of the project's revenue will go towards development (as opposed to commercial games, where retailers and publishers take a large cut) it's actually possible to assemble a bigger game budget from fewer people.
 
It's also worth mentioning here that there might be other avenues of funding for a non-profit project like this one: academic or research grants would be one possibility, corporate sponsorship or advertising another.  The bulk of the financing however, will ultimately be from individual contributions: pledges and donations.

Pledges are direct investments in the game's development;  They are completely non-binding, and can be decreased or retracted at any time.  Nor do they require any personal or payment information (except a contact email address).  Pledges will only be collected once the total of all pledges is greater than or equal to the projected game budget.  When collected, they will become part of a fund specifically earmarked for the game's development.
 
Donations, on the other hand, are voluntary, non-refundable contributions to the project's general fund;  They will most likely be used to meet ongoing costs such as website hosting and project promotion.
 
Both kinds of support are greatly appreciated, and will count towards determining membership status (see the "Membership" section for more details).

Visit our donation page, enter the amount you would like to donate in the box, and click on the Paypal link below to donate. If you don't wish to use Paypal, contact the site's administrator to work out an alternate way to donate.

Although we hope to have a more sophisticated system in place soon, right now you can enter your pledge in the "Contributor Status" section of your user profile, here (must be logged in). If you later wish to change or retract your pledge, simply change the amount listed in that field.

While a pledge of any size is appreciated, we hope that members will be willing to contribute an amount roughly equivalent to the cost of a commercial game ($50 USD).  This is also the threshold amount for becoming a Pledge Member in the project (donations are also taken into account for this.)  Naturally larger contributions are welcome too; the best way to arrive at an optimum pledge amount is to think of it this way: If you could go to the store tomorrow and buy a copy of Sim City 5 (with all the features the community has been asking for,) what's the most you would spend to get it?  That's the best amount to pledge to make Metropolis a reality.
 
There's also an option to contribute to a phased development plan, in which development will start on the core game engine even before funding for all features is complete.  See below for further details.
 
One thing we do ask is that you limit your pledge to an amount that you are realistically willing to pay;  Inflated pledge numbers are ultimately counterproductive for getting the game made.  Thus, if you would like to make a contribution larger than a few hundred dollars, please contact the project organizers directly.

Phase One is shorthand for a modified development model, in which work on "Phase One," a stripped-down, core version of the game, begins prior to the total game budget being assembled.  The benefit of the Phase One model is that development will be greatly sped up, as work can begin while funding is still being collected for the rest of the game.  However, if Phase One begins prior to the total game budget being ready, there is no guarantee that the rest of the game can be completed, at least by the full-time development team.  Note, however, that we are committed to making Phase One a playable, if barebones game, and providing a platform for modders to improve upon if formal development can't continue.  To read about Phase One in more detail, check out this article. 
 
If you're not sure which kind of pledge to make, we recommend making a standard pledge; if you later decide you're comfortable making a pledge to Phase One, you can always change your pledge amount in the "Contribution Status" field of your member profile.

A big drawback of this type of funding is that, unlike buying a game in a store, investing in a community game involves "buying" something that doesn't exist yet.  Naturally, we want members to be sure that their contributions are going to result in an actual game.  The common concerns that we want to adress are:
 
What happens to my donation if the funding funding goals aren't met?
This is the reason that we are using a pledge system rather than asking for donations up front;  No one wants to donate to something that only might happen;  If the pledge goals aren't met, there is no loss to members since the pledges are non-binding.  And if the goals are met, members can donate with the confidence that there is enough support from other members to actually go forward with development.
 
But since pledges are non-binding, how do I know everyone else will fulfill their pledge?
Because there might be some concern about how many pledges will actually be fulfilled when the time comes, we will not be collecting contributions directly, but via escrow;  If a substantial portion of pledges go unfulfilled, those who did contribute will have their donations returned.
 
Even so, how do I know you guys will actually make the game once the funding is in place?
Before collecting any funds at all, the Metropolis Project will be incorporated as a registered non-profit controlled by the community (see the "Organization" section of the FAQ for details);  Our charter will establish our mission and specify how funds are to be used, and will be published on the website.  The project organizers are also happy to address any concerns or questions you might have, and can be contacted here.
 
For more detailed information see this article.

You can find a comprehensive definition here, but essentially an escrow is a trusted third party that mediates transactions.  In this case, when we begin to collect pledges, we will not ask you to transfer money to us directly;  Instead we will be using an escrow account with a widely-known financial institution, such as a bank.  The terms of the escrow will be that we will only receive funds if a certain percentage of the total pledged, say eighty percent, is actually paid.  Otherwise, contributions will be returned to their donors.  This mitigates the risk of donations being collected but the total budget still being too small.

A final concern that many members might have is that, when the game is finally released, they may not be satisified with the result.  Unfortunately, once development is already underway, and certainly when it's finished, it will be impossible to give any refunds (as the money will have already been spent).  However, while being unhappy with the game as it's released is an unavoidable risk, there are two points to consider here: first, that this is no different than buying any other game sight unseen (many software stores, for example, will not refund opened games).  Second, that unlike a commercial game, Metropolis will be open source, and you will be able to modify it as you see fit.