Crowdfunding Project Success for Game Developers: Evidence from Kickstarter and Steam

Crowdfunding has revolutionized business investor connection in many industries, one of which is game development. Traditionally, triple-A game developers and publishers were able to monopolize the industry, but with the emergence of crowdfunding platforms, smaller game development teams and companies have a way of competing with large corporations by attracting funds. However, Kickstarter reports show that two-third of game funding projects fail to meet their goals. This study develops and empirically examines a theoretical model to predict video game's crowdfunding success to address this gap. We collect data on video game projects that were initiated on Kickstarter and were later released on the Steam platform. Our analysis of more than 7000 reward tiers for 1967 projects reveals that reward type (free game copy, in-game perks, accessories, artworks, and involvement), and reward description length positively influence funding success, while the number of reward tiers and funding period negatively impact funding success.