PayPal Locks (And Then Releases) Funding For Yatagarasu: Attack On Cataclysm

Yatagarasu PayPal

What is up with PayPal lately? Nyu Media’s Seon King announced the other day on Yatagarasu‘s Indiegogo page that PayPal was withholding 50% of the funding that they’re to receive from those who payed using PayPal to donate. Given that many prefer to make payments online using PayPal’s system, that’s a lot of money being held. $118,243 was raised for the project, many of which was payed using PayPal.

PayPal’s reason to hold it is as a form of collateral in the event that people demand refunds for things they don’t like. Chargebacks in other words. When the game is released, PayPal would then pay the rest of the money. It runs counter to the Indiegogo policy of getting all funds upon the campaign’s end. And this isn’t the first time PayPal ‘s done something like this. It happened before with the Skullgirls Indiegogo campaign, where their PayPal payments were frozen for the same reasons as Yatagarasu. Holding payment like this would actually harm a project as money for important things like artists, equipment maintenance (or replacement), and creating backer goodies just simply won’t be there.

Thankfully PayPal has released the funding and the developers of Yatagarasu will get their money in full. However this should serve as a cautionary tale to anyone that wants to run an Indiegogo/Kickstarter campaign and have PayPal as a payment method. King was aware of PayPal’s shenanigans before with Skullgirls and Glassup, and hoped that PayPal learned their lesson. Sadly that wasn’t the case.

Yatagarasu Attack On Cataclysm

Yatagarasu is a 2D fighting game created by three former SNK developers who also had a hand in making King of Fighters. The fighting system in place is simple for both those that are new to fighters and those who prefer a more pure fighting game without all the crazy systems other fighters tend to put (looking at you SFxT!). They’ve been developing the game for six years with very little funding and aren’t sure if they can continue this slow pace for long. The campaign was successful, and the devs hope they can release the game on PC by Feburary 2014. You can find out more about it on the Indiegogo page for the project.

[via Yatagarasu’s Indiegogo page]

One thought on “PayPal Locks (And Then Releases) Funding For Yatagarasu: Attack On Cataclysm

  1. Pingback: Shantae and Mighty No. 9: A Tale of Two Crowdfunding Projects | The Wired Fish Network

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