The Video Game Industry Struggles to Obtain Funding
According to Keoken Interactive, the video game industry is currently facing a tumultuous period, with many companies fighting for survival while others are shutting down. One of the main issues highlighted by Keoken is the challenge of securing funding to develop new games, leading to more closures in the coming months.
Challenges in Obtaining Funding
Koen Deetman, co-founder of Keoken, discussed the current difficulties in obtaining funding in a conversation with GI.biz. Over the past 2 years, he has made over 200 presentations in an attempt to secure funding for 5 games, but without success. Despite known for games like “Deliver Us,” Keoken is struggling to make projects more appealing to publishers, with more than 40 rejections received even after adjusting and changing the games.
The Collapse of Traditional Game Development Model
Koen pointed out that the traditional game development model is collapsing, and there is an urgent need to find a more efficient and sustainable way to create these experiences. The post-COVID correction, signs of recession, inflation, and massive layoffs affecting most companies are contributing to a spiral of pessimism within the industry. This has resulted in a decreased willingness to take risks and the need to explore alternative funding sources, but these efforts have not always been successful.
Despite the success of games like “Deliver Us,” which have been played by millions and continue to sell well, Koen mentioned that Keoken is running out of money. The company will attempt to find investors and attract attention to its projects at the GDC, but this may be the last chance before closure. The high costs and challenges in game development, coupled with the time it takes for games to generate revenue, make it difficult for producers to be profitable in the long run.
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