Stormgate Developer Frost Giant Studios Invites Fans to Invest in the Company
In an unprecedented move, Frost Giant Studios, the developer behind the highly anticipated game Stormgate, is now seeking investment from its dedicated fanbase. Having already amassed an impressive $35 million in initial funding and an additional $2.3 million through Kickstarter, Frost Giant Studios aims to raise even more capital through an upcoming “crowd-equity campaign.”
Although the full investment campaign will not launch until March, Frost Giant Studios has launched a “Test the Waters” page, allowing eager supporters to reserve their spot in advance. This preliminary measure not only gauges the level of interest from potential investors but also rewards reservation holders with an extra 5% share bonus for committing early. It’s worth noting that this unique opportunity differs from a traditional Kickstarter campaign, as investors will receive shares in the company rather than rewards.
Now, one may question why Frost Giant Studios is seeking further funds after securing a substantial sum of $38 million. The answer lies in the exorbitant costs associated with game development. According to Gerald Villoria, Frost Giant’s communications director, games are incredibly expensive to create. “Modern AAA game budgets are often measured in the hundreds of millions, and that’s not counting marketing budgets,” he explained. While the initial funding covered the essentials, it fell short when it came to extras and special features that only big publishing budgets could support, such as a physical Collector’s Edition and expanding the beta tester pool.
The funds raised from the crowd-equity campaign will primarily support a strategic marketing campaign, paving the way for Stormgate’s highly anticipated early access launch this summer, as confirmed by Frost Giant CEO, Tim Morten. Furthermore, the investment will provide stability for the studio during this turbulent time in the gaming industry. Frost Giant opted for this investment initiative in response to big publishers “laying off hundreds of game workers seemingly every day, and making decisions that prioritize near-term profits instead of worker and player happiness,” as stated by the studio. By choosing to self-publish the game with direct support from the player community, Frost Giant aims to control its own destiny and ensure the success of Stormgate.
Critics have hailed Stormgate as a fusion of StarCraft 2 and Warcraft 3, offering fresh twists to the real-time strategy genre. Developed by a team of industry veterans from Blizzard, the game has garnered significant attention and excitement from fans. In fact, during the recent Steam Next Fest, Stormgate’s demo ranked as the second-most played. Its early access launch is scheduled for the third quarter of 2024.
As Frost Giant Studios opens the doors for its fanbase to become vested stakeholders, the gaming industry watches with anticipation to see if this innovative investment strategy pays off. With Stormgate poised to become a prominent player in the real-time strategy genre, the financial support from dedicated fans could propel this game to new heights.
Analyst comment
Neutral news.
As an analyst, the market for Frost Giant Studios is expected to benefit from the increased capital raised through the crowd-equity campaign. The funds will support a strategic marketing campaign and provide stability for the studio. With the highly anticipated early access launch of Stormgate, the financial support from dedicated fans could drive the success of the game and potentially elevate Frost Giant Studios in the real-time strategy genre. However, the outcome will ultimately depend on the execution of the game and the reception from players.
