Paypal Making Life Difficult Again For Indie Devs

Written by Andrew Moynihan on Tue, Sep 10, 2013 3:30 PM

It seems that for Indie developers, the fight never ends. As everyone is finally realising the strength of Crowdfunding through channels like Kickstarter or IndieGoGo, not everyone is happy to make it easy.

Paypal have withheld upto $60,000 of the $120,000 raised by developers hoping to remake Yatagarasu Attack on Cataclysm until the game has been completed and shipped...

Even though all of the crowdfunding sites make it quite clear that there is a risk to funding any projects, Paypal seems to be taking matters into their own hands. They are refusing to pay up to half of the funds promised by backers to the developers.

Naturally, this will cause huge issues with keeping development on track and on time, and could easily end up the same way the Skullgirls devs, Zero Lab Games, did; being unable to pay their staff during development.

Nyu Media commented on the issues:

“We appreciate irony as much as the next person, but PayPal refusing to provide funds legitimately raised to complete a game until after the game is released isn’t just beyond ridiculous – it potentially derails the game development”

If Paypal refuse to release the rest of the cash Nyu Media have said that they will refund all the Paypal payments, requesting that backers instead support the game's development via their own site. Nyu are worried that they won't get as many backers this time, potentially leading to a smaller development budget. To keep up to date, check out the IndieGoGo campaign here.

Do you think Paypal should be allowed to withhold funding from the devs? Or do the backers know what they're risking? Tell us your thoughts.

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06:57 Sep-11-2013

Half is too much!!!

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01:20 Sep-11-2013

has paypal given a reason?
how does paypal benefit from withholding funds?

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01:33 Sep-11-2013

Reason - limiting the possibility of developers simply ripping the backers off, releasing nothing at all (my guess).
Benefit - they'll take a hefty chunk out of that money after release, counting it as a fee of some kind.
The problem has already been solved, though.

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20:12 Sep-10-2013

This should be criminal...

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20:00 Sep-10-2013

that's really sad;
ofc question is if they really need 120k, but I don't know how much was the goal,
also it's really stupid PayPal logic, because although they wanna "secure" the backers, they are gonna hold funds of which they will be no use later when the game is up :/

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20:25 Sep-10-2013

Goal was 68k according to the fundraiser.

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21:52 Sep-10-2013

then they shouldn't complain if Paypal gives them the goal 68k immediately and the rest;
but it would be fair to get the rest not after the game is released :P

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23:35 Sep-10-2013

Well, they DID receive the full sum afterall - PayPal changed their decision :)

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08:32 Sep-11-2013

its good then, I use Paypal because it's really well secured, so I think they just wanted to make sure where the money go :)

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16:56 Sep-10-2013

Paypal is beyond silly on this issue. How can the game be completed and shipped when Paypal holds HALF the funding? It's ridiculous!

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