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Why Ouya Is Making A Killing On Kickstarter

By the time you read this, more than 27,000 people will have pledged over $3.5 million to help finance the Ouya campaign on Kickstarter. That beats the Ouya team’s asking price of $950,000 all hollow, and the pledge total will probably climb much, much higher before their crowdfunding campaign closes in the second week of August. Ouya raised more than a million dollars on Kickstarter in less than eight hours, beating out both Double Fine Adventure and the Pebble watch to become the fastest-growing Kickstarter campaign in history. It's a fantastic crowdfunding success story, but plenty of questions remain about why the Ouya campaign is attracting so many donors.

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ChunkyLover531897d ago

I know 3.5 million is a lot of money to any person, but 3.5 million isn't even a third of what it costs to make a single AAA title on PS3 or Xbox 360.

I admit its an interesting concept, but a console that encourages hacking isn't going to really get a lot of support from online gamers. I can imagine a ton of people using hacks on the games, it doesn't seem like they will be able to police the system very well.

OmegaSlayer1897d ago

I didn't even understood the reason why people should need this thing.
But I understand that people wants to buy even what they don't need if it appears shiny enough.

Yi-Long1897d ago (Edited 1897d ago )

... that will allow me to play movies, emulators, and Android games like Machinarium.

I don't see it as competition for current or next-gen consoles, but as competition for the media-centers that are being sold now for simular prices, and ONLY play movies.

xPhearR3dx1897d ago

It's actually 3.99 million as I'm typing this with 27 more days to go. They're going to get a SHIT ton of money for this by the time it ends.

Yi-Long1897d ago (Edited 1897d ago )

-double-

My apologies.

WeskerChildReborned1897d ago

I really have doubt that it will not be able to compete with the consoles.

+ Show (1) more replyLast reply 1897d ago
JBSleek1897d ago

It is probably going to get good support from indie developers and those who don't have the money to have their games on PSN or Arcade.

It's a nice option and a good compliment to what we have already and people see the potential on this and thought it would be good to invest in it.

At $99 it isn't a risky investment as a consumer and it has cheap games so you aren't burning your wallet.

I personally hope to see the success of this device as it gives me hope that people are still innovating in a stagnet console market.

joeorc1897d ago

on how fast it's taking off, Maybe Google decides to take the plunge and goes all in..remember recent Google I/O about nexus 7 is a game machine..this system has the same chipset as the google nexus 7.

Google backing this console..hmm could be courting companies like Google to give it the thumbs up?

joab7771897d ago (Edited 1897d ago )

To me it's quite obvious. As mentioned above, it's a great entertainment center for cheap. But, most of all, it is an amazing outlet for aspiring app makers, game makers etc. Also, u can do whatever u want to it. As far as the warranty goes, how many people will ever go through the hassle of returning it...it's $99. And I think many people see this as a beginning. No, it doesn't compete with current consoles, but a move in this direction is imperative. Google must have a huge smile on their face. They, themselves have been trying to get an entertainment device in people's homes to no success. This could give them the leg up in their apple war (I know they are not directly involved but it's android powered.)

Dlacy13g1897d ago (Edited 1897d ago )

Ouya is making a killing because people think this machine will somehow replace the mainstream consoles. That notion most likely coming from the Ouya team themselves and the way they are spinning this box.

Regardless, basically all this kickstarter is in reality is a very public pre-order promotion. A kickstarter that will give them 80,000+ units pre-sold and they get basically free advertising by word of mouth and the popularity of Kickstarter. Kickstarter quickly becoming the facebook for game development...trendy and the cool thing to do.

My question... how does this company actually make money? From a business plan I scratch my head. No way are they making any kind of profit off a $99 console with the specs they have...so how are they making the money to continue to support this? No talk of subscriptions... Do they think they can survive just off the market place and take a % of every $5 game sold? Or are they games going to have to cost more?

joeorc1897d ago

"My question... how does this company actually make money? From a business plan I scratch my head."

How does Playstation Home, which many people to this day say its not any type of SUCCESS. Which Sony has promptly has proved yes it is.

just because they are not gouging the consumer for $60.00 a pop does not mean they cannot make the system a SUCCESS. Can it fail to gain traction, sure but anything can happen. lets just see what happens.

Dlacy13g1897d ago

@joeorc, that's a fair point... Clearly they feel they can survive on percentages of software sales and possible microtransactions.

In terms of Playstation Home, it is a success becuase of the business model they have in place... your avatar and home are things you buy stuff for. people love outfitting an avatar apparently. Thats not a knock on Home either, that is the business model that is working for them.

If the plan for Ouya is ultimately something similar to a second life home hub, ok fine. I guess I am just wanting to see more of a fleshed out plan beyond the hardware especially given this is supposed to launch in March 2013.

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