4 ms·
I didn't post anything in the original thread, but I had a negative initial reaction to the original article. For me, at least, it has to do with three things:
by martingordon 14y ago
I didn't post anything in the original thread, but I had a negative initial reaction to the original article.
For me, at least, it has to do with three things:
1. The framing of the product. They make it sound like it will change to landscape of the video game market, not that it could. This type of grandiose posturing reeks of snake oil to me and turns me off completely. The device be a moderate success and sell a couple of million of units, but there's no way that Microsoft, Sony, Nintendo, and Apple (yes, Apple) are going to see it as a threat to their current gaming ecosystems. Each currently have an installed base of at least 60 million (with the admittedly dead-end Wii coming in at almost 100 million and iOS at over 200 million), and more importantly, household recognition thanks to millions in advertising spend. What needs to happen for this device to end up in 50 million living rooms? How likely are those things to happen?
2. Being wildly successful on Kickstarter is one thing, having social proof in the form of professional funding (VC, angel, and/or otherwise) is another thing. After all, it's easier to get 10,000 people to give you $100 than it is for one person to give you $1 million. I am strongly opposed to the "raise money now, make money later" approach to startups and wholeheartedly believe that it is possible to build a software startup by bootstrapping. That said (and this might just be due to my inexperience with hardware development), I don't know that it's possible to build a successful hardware business that requires significant capital outlay to get started without outside funding. Are these things profitable at the $99 price point? If not, where is the cash going to come from to mass produce these. Is 10-100k purchases enough to swing a Series A, even if those 10-100k were sold at or below cost? Kickstarter seems like a great way to sell small-batch, niche products, but not necessary any huge mainstream successes.
All of it boils down to this: I used to like innovative products just because they're innovative, but I've seen too many "great" products burned by a lack of a viable business behind the product. If I'm going to commit to a product or service, I need to know that it will be around for the long haul. I can no longer judge products on their own, I have to judge them based on their viability on the marketplace.