Game Development Funding
Ongoing coverage on Game Development Funding.
Latest coverage
Hytale boss promises free copies of the sandbox RPG for your friends if you grab its fanciest founder's edition
Hypixel Studios founder Simon Collins-Laflamme announced that players purchasing the Hytale Cursebreaker Edition will receive additional free copies of the sandbox RPG for each chapter released before version 1.0. This incentive aims to reward early supporters and celebrate the upcoming Chapter 1 update, which introduces new gameplay mechanics, gear, and a goblin faction.
Sega won't "entrust the creative aspect of games to AI," but is using tech to "improve efficiency" in other departments
Sega will not entrust the creative aspects of game development to AI, but is using the technology to improve efficiency in other departments like publishing and business idea generation. The company has established a Generative AI Committee and Task Force to develop in-house tools. Separately, the South Australian Film Corporation has doubled its Digital Games Fund to $1 million to support local game development across various stages.
South Australian government makes largest investment in game development by doubling its Digital Games Fund to $1m
The South Australian government, through the South Australian Film Corporation, has doubled its Digital Games Fund to $1 million, marking its largest investment in game development. The fund offers three streams for pre-production, production, and post-release activities, alongside a new Game Studio Placement Program to support emerging talent. This initiative aims to boost local game development and increase the global presence of South Australian games.
Big Walk made more money than Counter-Strike and Warcraft in August
New data from August reveals that Big Walk and Star Wars Zero Company achieved significant revenue on PC, outperforming established titles like Counter-Strike and World of Warcraft. Big Walk sold over a million copies in its first six days, while Star Wars Zero Company, despite a late launch, also performed strongly. Marvel Tōkon: Fighting Souls showed mixed results, with a decent console performance but a disappointing PC launch.
"Crowdfunding is fundamentally a marketing and a community exercise" – What developers need to know about funding a game with Kickstarter in 2026
Crowdfunding, particularly on platforms like Kickstarter, remains a viable, albeit challenging, method for game developers to secure partial funding and build community. While headline figures have decreased since 2015, 2025 saw $26 million raised across 443 successful projects, with 55 exceeding $100,000. Success now requires a near-complete game, significant marketing, and an engaged audience, shifting crowdfunding's focus from a funding source to a marketing and community exercise.
Irish Game Fund expands with additional funding pathways
The Irish Game Makers Association and Screen Ireland have expanded the Irish Games Fund for 2026, introducing three new funding strands: the Development Fund, Prototype Fund, and Release Fund. The Development Fund, offering €50,000 to four teams, specifically supports established projects progressing towards production and commercial release, with a strict policy against the use of generative AI in final assets due to intellectual property concerns.
Kojima Productions' survival story may sound strikingly familiar to struggling devs
Hideo Kojima revealed that Kojima Productions faced a significant funding crisis for its game Physint after Sony Interactive Entertainment withdrew support. The studio secured a new deal with Microsoft's Xbox, avoiding layoffs and continuing development. This situation highlights the broader financial struggles and funding challenges faced by many developers in the current industry climate.
Hideo Kojima Says Sony Dropping Physint Was A Serious Blow, But There’s No Bad Blood
Hideo Kojima revealed that Sony Interactive Entertainment's decision to cease funding for his game Physint was a significant blow to Kojima Productions. Despite the shock, Kojima secured a new partnership with Xbox to continue development. He stated there are no hard feelings towards Sony, and the relationship remains strong.
Studio Behind Hyper Light Drifter In Peril After Publisher Withdraws Funding for Unannounced Project
Heart Machine, the studio behind Hyper Light Drifter, is facing severe financial difficulties after a publisher withdrew funding for an unannounced project. This funding withdrawal puts the studio's future in peril.
Worker-run studio KO_OP confirms layoffs
Indie studio KO_OP, developer of Goodbye Volcano High and Young Suns, has laid off 13 employees due to a significant drought in game development funding. The worker-run studio made the decision democratically to ensure its survival, with profits from Young Suns still being shared with impacted members. KO_OP is focused on securing new funding to rehire staff and continue development.
"We probably need a few more Expedition 33s to just prove them wrong" – the maker of Valor Mortis on why publishers should have faith in AA
One More Level, the studio behind Ghostrunner, discusses the challenges of securing funding for AA games despite successes like Clair Obscur: Expedition 33. After losing publisher Private Division, the studio found a new partner in Lyrical Games, a publisher focused on mid-tier titles, allowing them to maintain their team and quality for Valor Mortis.
"I don't know if they will keep funding that one" - Former EA manager doesn't believe the next Mass Effect will survive Saudi takeover
A former Electronic Arts manager, Emmanuel Rosier, expressed doubt about the continued funding for the next Mass Effect game following EA's acquisition by Saudi Arabia's Public Investment Fund. Rosier, now with Newzoo, believes BioWare's IPs are at risk due to the studio's recent struggles and EA's potential need to leverage its most profitable franchises to manage its debt.
WINGS really, really wants to fund your neat indie video game
WINGS, an investor focused on supporting women and gender-marginalized developers, has rebranded and announced new flexible financing pathways. The organization is soliciting pitches for projects with budgets of $500,000 or less, offering investment options such as white label publishing, self-publishing partnerships, and finishing funds. CEO Astrid Refstrup emphasized that WINGS invests for profit in games with commercial potential, aiming for long-term sustainability and success for developers.
Business and Finance
Roblox is facing criticism from Wall Street for allegedly directing young users towards other games. The article also briefly mentions the UK Global Screen Fund and its support for international video game distribution through the BFI.
Stalker 2 studio founder's claims that Xbox paid more for exclusivity than the game cost to make "do not reflect the actual facts", according to GSC Game World
GSC Game World has refuted claims made by its former founder, Sergiy Grygorovych, that Xbox paid more than the development cost for Stalker 2's exclusivity. The studio stated that Grygorovych was not involved in the negotiations and his comments do not reflect the actual facts, with the majority of the budget funded by current owner Max Krippa.
Stalker 2 developer refutes claims by studio founder that Xbox paid more than game's development cost to make it exclusive
GSC Game World has refuted claims made by studio founder Sergiy Grygorovych that Microsoft paid more than the development cost of Stalker 2: Heart of Chornobyl to secure its timed Xbox exclusivity. The developer stated that Grygorovych was not involved in negotiations or development and that his comments do not accurately reflect the situation, noting that the majority of the budget was funded by studio owner Max Krippa.
Stalker 2 Turned a Profit Before It Came Out Thanks to Money Microsoft Paid for Xbox Exclusivity
The founder of GSC Game World, the developer of S.T.A.L.K.E.R. 2: Heart of Chornobyl, stated that the game became profitable before its release due to Microsoft's payment for Xbox exclusivity. This deal secured the game's position as an Xbox console exclusive.
Gamecity Hamburg announces second round of prototype funding
Gamecity Hamburg has opened applications for its second round of prototype funding, offering up to €80,000 in non-repayable grants to small and medium-sized studios and startups. A total of €180,000 is available for prototypes demonstrating compelling market potential. The application period runs from September 4 to 24, with new committee members Nora Klutzny and Paul Taaks joining the selection process.
Gamecity Hamburg Announces Second Round of Funding for Prototypes in 2026
Gamecity Hamburg, an initiative of Hamburg Kreativ Gesellschaft, has announced a second round of prototype funding for 2026, with applications opening from September 4 to 24. Founders, startups, and SMEs can apply for up to 80,000 euros in non-repayable funding for prototypes with market potential. New industry experts Nora Klutzny and Paul Taaks have joined the awarding committee.
Dragon Age writer David Gaider's next game is a light-hearted heist RPG, if he can get the funding for it
Dragon Age writer David Gaider and his studio Summerfall Studios are working on a light-hearted heist RPG, but are struggling to secure funding due to the current contraction in the games industry. Gaider expressed concerns about the difficulty of getting new projects funded, as publishers are hesitant to invest in original intellectual property. Despite the challenges, Gaider remains optimistic about the game's reception but acknowledges the precarious state of smaller studios.
