Square Enix Takes A Cut From Crowd Funding For Indie Games – Is This Right?

Square Enix Takes A Cut From Crowd Funding For Indie Games – Is This Right?

As reported yesterday, the Kickstarter for Fear Effect Sedna went live. Developed by indie studio Sushee, the game falls under the Square Enix Collective. What does this mean? It means Square Enix lend (more like lease) out the Fear Effect IP to Sushee in return for finical gain. 10% of the sales revenue and 5% of the crowd funded amount is what is agreed. The 10% of sales revenue is fine, but the 5% from the game’s crowd funding amount? that seems questionable, even more so when it’s not mentioned on the kickstarter page.


The official site states the following regarding the 5% -


”And then it’s into the Funding phase, when we’ll continue to help drive awareness of your campaign as a ‘Square Enix Approved’ project. At the end of the campaign, if you hit or exceed your initial funding target, we’ll ask for 5% of the net funds raised (ie, the amount you receive from Indiegogo or Kickstarter after fees are deducted). This isn’t because we’re trying to use crowdfunding to make money, but it does help us to cover our costs and keep the initial Feedback phase free for everybody. If you don’t hit your target, no fee is payable.” 


further information goes on mention -


”Later, once we’ve established the platform processes for original IP, you could have the chance to work with some of the older Eidos IP from our back-catalogue – initially Gex, Fear Effect and Anachronox. These will become available for pitches in due course.”


Suddenly this all seems like a recruitment process funded by crowd funding, allowing Square Enix to cherry pick indie developers.


No mention is made of the 5% cut taken from the Crowd funding amount


The cut is only mentioned on the Collective’s website’s ‘About’ page, which is not linked in the Kickstater page.

Sean Halliday

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