Keoken Interactive: The Games Industry's Funding Model is Flawed

The games industry is currently facing significant challenges, with many businesses struggling to survive. Rather than focusing on growth, companies are prioritizing survival, and the recent wave of mass layoffs and closures is a testament to the difficulties they are facing. For game developers, securing funding is crucial to their survival, but the bar for success has been raised significantly. Many studios, including Keoken Interactive, are finding it difficult to secure the capital they need to continue their projects. Despite making over 200 pitches for five games in the last two years, Keoken Interactive has been unable to secure a deal. The company has attempted to adapt its prototypes and pitch to different publishers, but these efforts have been unsuccessful. Koen Deetman, co-founder of Keoken Interactive, believes that the current model of game development is flawed and in need of a more efficient and durable approach. The post-COVID correction, recession, and inflation have resulted in a massive wave of layoffs, causing a downward spiral of pessimism. Keoken Interactive has attempted to diversify its revenue streams by negotiating work-for-hire contracts and co-development work, but these efforts have been unsuccessful. The company has also developed and published eight maps for Fortnite, but this has not generated significant revenue. As a result, the company has been forced to scale down from 45 people to 20, and the co-founders have gone without salaries for several months. Koen Deetman believes that game development is a challenging and expensive process, and that the current model makes it difficult for developers to make a profit. He argues that studios with proven track records should be encouraged and helped to become more sustainable businesses, without the need to constantly worry about their immediate survival. Keoken Interactive has a proven track record of developing successful games, including Deliver Us The Moon and its sequel. However, the company is still struggling to secure funding for its new projects. In a last-ditch effort, the company is releasing a video showcasing its prototypes and calling on the community to help raise awareness. If the company is unable to secure a deal, it will be forced to scale down to zero, and the management will help former team members find new roles. Koen Deetman remains optimistic about the future of the games industry, despite the current challenges. He believes that the industry is changing and that there is a bright future ahead for game developers, with a diverse range of games and experiences being created.