Ouya boss defends $1m fund despite suspicious activity

September 11th, 2013, 23:38 Posted By: wraggster

The chief executive at Ouya has defended a controversial investment initiative, called the Free the Games Fund, in the wake of allegations that two companies have exploited the system for personal gain.
Ouya boss Julie Uhrman addressed a growing number of critics on hercompany blog, stating, "if we can put aside the doubt and embrace the spirit of this fund as it is meant, and of Ouya as it is meant, we might just be surprised by what a little positivity can produce."
Ouya founder Julie Uhrman says the controversial Free The Games Fund will continue [Image: The Verge]The response has drawn negative comments from established indie developers, from Rob Fearon to Sophie Houlden, who have published their comments beneath Uhrman's post. Meanwhile, a noticeably large collection of developers on Twitter, such as Thomas Was Alone creator Mike Bithell, now openly oppose the Free The Games Fund.
The initiative guarantees to double the funds of any successful Kickstarter project provided they are exclusive to the Ouya console for at least six months. An investment pool of $1 million has been set aside for qualifying projects that successfully raise anything between $50,000 and $250,000.
In addition, the game that raises the most through this system will be awarded an extra $100,000 bonus when the initiative closes in summer 2014. That means a project which raises $250,000 could theoretically go on to make $600,000 after Ouya's bonuses are factored in.
However, two Kickstarter projects applying for the extra cash have drawn unfavorable attention due to the nature of their funding.
Football title Gridlion Thunder has managed to raise $170,000 from just 183 people, equating to nearly $1,000 of investment from each backer. Meanwhile, a separate project - called Elementary, My Dear Holmes - managed to raise nearly $60,000 from 861 backers (around $70 per person).
It is alleged by many, though not ever proven, that both these projects have been backed by investors who have already established ties with each project. The allegation, which has not been proven, is that such investors see an opportunity to effectively double their money by exploiting the Free The Games Fund. It is not certain that such practices are unlawful or breach Ouya and Kickstarter rules.
Kickstarter has since suspended the Elementary, My Dear Holmes campaign. Sam Chandola, a representative for the project's developer Victory Square Games, said he was saddened by the accusations of manipulation and claimed he was actively trying to disqualify suspicious backers before suspension.
"We had been hoping suspicious accounts would have been suspended so that we could keep on going strong and without controversy," he said in a statement issued to Polygon.
It is unclear whether Kickstarter will lift its suspension of the Elementary, My Dear Holmes project. Chandola claims that the game has now caught the attention of various venture capitalists. Kickstarter has declined to comment.
The developer of Gridlion Thunder, MogoTXT, has issued a statement on Kickstarter thanking its backers but has not yet responded publicly to any of the allegations.
Uhrman has said the intention behind the Fund "seems to have been lost".
"This response [from the community] surprised us, we thought this was going to be great, how could it not be? We launched the Free the Games Fund to find great games from the very platform that gave us life. We wanted to make magic happen and help developers bring their games to Ouya."
She insisted that the funding initiative will remain open.

http://www.computerandvideogames.com...ious-activity/

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