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Krome Receives $1.7 million for Game Engine Development

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The Age has reported that Krome Studios received over $1.7 million in the latest round of AusIndustry funding from the Federal Government for the development of a game engine. It's probably safe to assume that it would be targetted for next-gen consoles...

"Krome Studios, a Queensland-based computer games developer, received the largest IT-related grant, of more than $1.7 million, to develop a games engine.

Krome, founded in 1999, employs 130 people and its TY the Tasmanian Tiger is a highly successful home-grown computer game. Other titles include King Arthur and The Adventures of Jimmy Neutron."

Submitted by anonymous (not verified) on Tue, 06/12/05 - 11:59 PM Permalink

  • 1. pp - Wednesday, December 07, 2005 - 10:03:17 AM
    So true - but where does the Australian government get off on using funding for the purpose of a computer game engine that is not shared accross the Australian games industry.
  • 2. Lorien - Wednesday, December 07, 2005 - 9:58:07 AM
    "But hey, its a good thing!! Hellalujah! Praise the government!!" Just as well you said that pb, otherwise you might be getting close to sedition, which Little Johnny really doesn't like at all ;)
  • 3. Lorien - Wednesday, December 07, 2005 - 10:25:26 AM
    Who is it who decides where the grants go? Grover suggested the GDAA are hired as consultants, and that they have some say in who gets grants for games projects. Anyone confirm or deny that?
  • 4. Anonymous Coward - Wednesday, December 07, 2005 - 8:28:21 PM
    Hopefully Krome will have more success releasing nextgen titles with their engine than Auran did with the Jet Engine after the government showed them the money!
  • 5. mofo - Wednesday, December 07, 2005 - 11:02:21 PM
    Hypocrites. Everyone else has been getting funding for years why not a company who are actually going to ship titles? The place has yet to resort to mass sackings at the end of the project and has given dozens of people their start in the industry. There's no US-based parent ready to layoff people to prop up the parent compny share-price, no vaporware and have helped give at least three local companies a big break. And all of the company's decisions are made in Brisbane, not Britain, Japan or the US.

    P.S. Krome are hiring. If you think you can make the place better, come and join us

  • 6. Mcdrewski - Thursday, December 08, 2005 - 9:35:40 AM
    Lorien - in this case I suspect the GDAA is out of the equation. The Ausindustry site (http://ausindustry.gov.au) has a long list of FAQs and hoops to jump through to apply for this funding.
  • 7. pb - Thursday, December 08, 2005 - 11:02:25 AM
    If the company will actually ship titles, why does it need welfare?

    Contrary to mofo's claim, *many* companies don't take government handouts, and of those that do most get far smaller amounts.

    Of course Krome doesn't have to resort to mass sackings, they can employ people using tax payers money! Guess what - anyone avoid mass sackings when someone else is being the salaries...

    As for the point about decisions being made in Brisbane as opposed to Britain, the US or Japan - that's just nationalistic crap. Its the quality of decisions, not the geographical location of the people who make them that should matter.

    And yeah, I bet Krome are hiring, sapping the industry of limited talent, making it even harder for those companies doing it on their own and pissing away tax dollars in the process.

  • 8. NoSpam - Thursday, December 08, 2005 - 2:47:10 PM
    You come across as a sad individual pb. If youhave a particular gripe with this company, why not share it in the forums?
  • 9. mofo - Thursday, December 08, 2005 - 10:07:06 PM
    Pwned!
  • 10. LiveWire - Thursday, December 08, 2005 - 10:15:23 PM
    It is rare that I don't see an ad on Sumea or else where advertising available positions, so I should hardly say Krome is "sapping the industry of limited talent", it's not like they're poaching from other companies. Your comment pb is groundless I cant see any logic in it.
  • 11. pb - Friday, December 09, 2005 - 8:51:51 AM
    "You come across as a sad individual pb" = I don't like what you're saying but since I've got no response I'll resort to personal insults, even though I don't know the person I'm insulting.

    "If youhave a particular gripe with this company, why not share it in the forums?" = I'm so intolerant of ideas different to mine that I believe the only reason someone could disagree with me is if they have some other motivation.

    "Pwned" = I can't contribute to a discussion on the financial arrangements that drive our industry but I better say something or I'll look lame (doesn't matter, you do either way).

    "I cant see any logic in it" = I don't realise that 4-1=3. It ain't rocket science dude, there's only a certain amount of talent and companies have to fight over it,.

  • 12. NoSpam - Friday, December 09, 2005 - 10:41:06 AM
    You started the insults by making lots of wild unsubstantiated arguments about this particular company. We're all interested in why you think these guys are so evil.
  • 13. pb - Friday, December 09, 2005 - 11:40:32 AM
    Which thread are you reading? I'm complaining about the fact that the government is handing out tax payers money to game companies. I'd be just as against it if it were any other company.

    You say my arguements are unsubstantiated but in fact they're in line with contemporary economic theory. You might not agree, but that's not the same as saying that I'm pulling these arguements out of my arse.

    For the record I've had no dealings with Krome whatsoever. My views here are entirely a result of the fact that they're getting government handouts. I'm totally against the concept in the games industry and the economy in general because I think it produces the opposite of the intended result. I thought I've been pretty clear.

  • 14. Lorien - Friday, December 09, 2005 - 12:09:44 PM
    That's how I read pb's comments. Not attacking Krome in particular, but government handouts and their consequences
  • 15. LiveWire - Friday, December 09, 2005 - 12:41:39 PM
    Let me just state that that's how I view pb's coments aswell (except for the "sapping the industry of limited talent" comment which was a direct reference to Krome). though I still dissagree with them.
  • 16. pb - Friday, December 09, 2005 - 1:18:58 PM
    Well, it wasn't meant to be LiveWire - I'm of the view that *any* company (games industry or otherwise) that employs people from a government handout is reducing the talent pool and putting it to suboptimal use.

    It also fuels inflation. Most of us are too young to remember inflation, but its important to mention because the consequences of these types of policies only became evident when economists started to look into the causes of high inflation during the 70s. Indeed the fact that most governments gave up on the Dependency Theory is one of the reasons inflation is (for the most part) a thing of the past.

  • 17. PIV - Monday, December 12, 2005 - 4:20:46 PM
    The only thing I would disagree with here Peter is that the market system doesn't necessarily result in the best or most talented individuals getting the capital/project either. Capitalism is just as ideological as Socialism, just as flawed. A working system I feel lies somewhere in the middle.

    Whether its the government deciding who gets the money or a company deciding, the decision is still made by a person with a particular process and/or motivation with a particular outcome in mind.

    The market system can be extremely corrupt and there are no rules or guidelines and exploitation is obviously in-built. Winning money for game related technology development is no easy task. Without seeing the details of this particular engine application its hard to say why they won this money, a straight next-gen engine (as every other company in Australia is in the process of developing) would not qualify under their own guidelines so there must be something more to this. Of course if you feel strongly enough about it you can do something about it. I doubt they have received all the funds yet. A well-structured argument made to the right government individual and fully backed up with facts would stop the process dead in its tracks. It may even result in a full enquiry, which wouldn't be a bad thing.

    In terms of who actually deserves the cash to develop a next-gen engine then your company would probably be the most likely candidate in Australia, not Krome. Personally I think it's quite tragic. I don't think Krome is particularly strong technically and definitely shouldn't be trying to develop next-generation technology, but that assessment is only based on results so far and doesn't take into account future capabilities. This should be left up to companies and individuals with much stronger technology and a real technology focus (e.g. middleware companies), it's a highly specialised task requiring highly specialized management, processes and engineers.

    So in short, there is much you can do about this if you want, and potentially there is much to be gained by doing so. Imagine if the Serenity engine was given this sort of injection of funds ... this can still happen and would definitely benefit all of Australian development (or rather a larger sector of the Australian games industry). A quick phone call to a couple of high-profile studios would provide you with the support required to make this happen.

  • 18. pb - Tuesday, December 13, 2005 - 11:42:25 AM
    I'm not sure if this is really a Capitalism vs Socialism thing - I don't think too many Socialists support the idea of handing over tax money (which is mostly paid by working people) and giving it to company owners! Having said that, my own preference is for the market system, primarily because it has a more efficient and responsive price system, but that's another discussion that could carry on for days :)

    As for what to do about all this, I think that making a few phone calls is an excellent idea, not sure if I'm willing to go as far as researching particulars to make an arguement to people in government that I don't have access to though. Afterall, I'm rather preoccupied developing next gen technology! Anyway, thanks for all the advice, we should move it to private next time though.

  • 19. bk - Wednesday, December 14, 2005 - 2:12:41 AM
    oh my dear lord

    you pb and piv seem to be missing the big picture here, the main reason the government is giving money to the australian games industry.

    the size of development teams, and development costs for next generation titles is going to be much much larger than current generation. for australia to immediately compete with larger, more heavily backed overseas developers/publishers, they need help from wherever they can get it.

    like you said, the talent pool in australia isn't that large, therefore a compnay like krome just can't go out on the streets and find another 30 or 40 people to fill a team just like that. for an australian company to make a next gen title worthy of international consumption, they need to find alternative means to be able to do this, which includes getting governemnt assistance.

    the games industry is one of the largest growing industries in the world, and already makes more money than the film industry. i don't blame the government for trying to invest in this industry, as long term, large scale australian succes can only do good things for the economy, as well as australian jobs etc.

  • 20. pb - Wednesday, December 14, 2005 - 8:54:15 AM
    No, I think we understand the motivation just fine. I'm just saying (again and again) that government assistance doesn't solve the problems you mentioned. Its not going to magically increase the talent pool, its not going to magically make us competitive and its not going to magically cause technology to appear.

    You're confusing a good motivation and a bad solution.

  • 21. Anonymous Coward - Wednesday, December 14, 2005 - 11:11:09 PM
    I can't understand how this is a bad thing - I can see several ways that a government grant to ANY company could encourage development of the local industry:
    1) allowing more juniors to be hired, and trained/gain experience, to become skilled members of the industry
    2) helping with acquisition of next-gen hardware required to create the technology needed
    3) purchasing of materials that will allow current members of the industry to grow their talents, that may otherwise not have been affordable
    4) relieving some financial strain to allow companies to continue to develop without having to sell to a publisher and then get shut down
  • 22. bk - Thursday, December 15, 2005 - 12:20:54 AM
    pb, you obviously dont have much faith in the ability of people in the australian games industry. thats a shame.

    we (the australian games industry) don't need money to make technology magically appear, we have the people who can do that, they just need help in the areas anonymous coward above has stated

  • 23. pb - Thursday, December 15, 2005 - 9:34:25 AM
    AC - If you can't understand how its a bad thing and its supposed to be so helpful I'm sure you can point to some worthwhile and now profitable industries that we have as a result of government grants...?

    It almost never works, it just rewards government access over technology and ends up putting the most talented people to work for companies that aren't in the best position to use that talent.

    bk - if I didn't have confidence in the ability of the people in the industry then I wouldn't be saying that they can stand up on their own without government handouts, so it seems like you've got it backwards..

  • 24. Anonymous Coward - Thursday, December 15, 2005 - 6:50:55 PM
    http://www.ausindustry.gov.au/
    You can't tell me that there's not a heap of companies/projects from the HUGE range of industries that can gain government grants that haven't benefited.

    Including:
    - pharmaceuticals
    - biotechnology
    - electronics
    - acquaculture

    I'm not saying that there aren't grants that are awarded for the wrong reasons (and am not intimating that it was for the wrong reasons given to Krome either), but to say that 'government grants are bad' is an exceptionally narrow minded view on the subject.

    Sure it doesn't work some times, but the money is spent to promote growth, not to make a killing for every cent invested, and companies and ideas can grow through trial, not just success.

  • 25. CynicalFan - Sunday, December 18, 2005 - 8:20:37 PM
    How in the hell is it possible that I missed this discussion !?

    I agree with pb on many of his arguments. If Krome are doing so well why are they in need of government grant funding for their development efforts? Krome I believe are not the only studio to have used funding from Ausindustries, I believe and Auran and Micro Forte have as well - perhaps others that have not advertised the fact.

    Anyway as I said, if Krome are doing so well then why are they not funding their projects with the profits of their hard labour?

    I am not against companies using such funding to seed their studio, as the funding for startups has to come from somewhere. I am against established and apparently successful studio draining and monopolizing that funding for themselves. After all, if you were the granting body, and you got an application from Krome to develop a "next-gen" engine, over a grant from a startup that has no track-record, very little in the way of funding, but an innovative project that they need funding for, which do you think will get the funding?

    I also agree on the argument that Krome shouldn't be developing a next-gen engine anyway, especially as they could license an engine instead - as stated, they are not exactly known for their "cutting-edge" technology. Anyway, it is not the tech that makes the game successful, but rather how you use it.

    If this practice persists, the funding will simply dry up in my opinion, in that these funding bodies will only allow themselves to be burnt by developers a limited number of times. Sooner or later they will become savvy to the industry, and will not naively give out funding based on the appearance of success.

  • 26. CynicalFan - Sunday, December 18, 2005 - 8:21:13 PM
    Also, just because people might lose their jobs doesn't mean that a studio should get developer welfare. If you keep on propping up the weak, then this industry will not get stronger, as they monopolise the funding and talent available in creating and projecting an illusion of prosperity, stability and growth.

    All it takes is one well placed shot or the lack of long-term sight to see, the ignorance of not heeding the warning signs of the cloud on the horizon, and the whole fa?ade will come crashing down rapidly, as the foundations have been eaten away by years of self-indulgent decay.

    Then where will the local industry be, other than in the toilet?

  • 27. C.H.U.D. - Sunday, December 18, 2005 - 9:43:50 PM
    Sorry I must have missed the presentation Cynical Fan but what exactly have you ever done to better/advance the industry?

    Other than tear down everthing every developer in Australia has ever done.

    Maybe you could do the whole country a favour and get off your fat arse and actually do something for a change.

  • 28. CynicalFan - Sunday, December 18, 2005 - 10:32:37 PM
    Well, I have been the cool-headed sane voice of reason for a start, and I have done a fantastic job considering the recent racist inspired violence and the air of anxiety it has created ;D

    When I have achieved something great for this industry, I'll let my actions speak for themselves, instead of hyping it up to paint a pretty picture. You never know, I might just do that something as well, and I may have achieved far more already than you realise - I don't feel the need to talk about all the things I do.

    Oh, I haven't torn down every developer in the local industry. Actually I haven't torn any developer down, just used them as an example to back up a point or two along the way - my emotions aren't as tied into my comments as much as you think :).

    My, my, you really know how to get someone all excited don't you sugar-lips. For your information, my arse is not fat and I have been quite busy in fact. Here's a piece of advice: don't shoot the messenger, as the message will be delivered regardless, and the messenger is not the source of your problems - you most likely are ;).

  • 29. C.H.U.D. - Monday, December 19, 2005 - 12:09:38 AM
    I stand corrected. Your insights into the failings of the local industry are invaluable lessons.
  • 30. CynicalFan - Monday, December 19, 2005 - 1:03:09 AM
    You see, I just knew you would see it my way! ;D
  • 31. Shams - Wed, 15 Feb 2006 12:25:57Z
    I have to say, I completely agree with pb.

    When I was running Nocturnal fulltime, even a fraction of this grant would have made a significant difference to the company. But for a large company like Krome? Im sure it will 'help out' paying the bills, but other than that it will have minimal effect.

    And what is the idea behind funding a next-gen engine? Im sure *every* developer in the country would happily take this sort of funding to help develop a next-gen engine. Why doesn't every developer then get the same grant? What sets Krome apart?

    It has been my experience, that (in general) only the big companies can apply for, and secure large grants - because only large companies have the time, personal and resources to actually put together decent applications for grants. And as I remember someone at MF telling me a few years back, that once you get one grant it becomes a LOT easier to secure more (the government feels more secure throwing money your way). I know that I looked at doing several applications for grants at Nocturnal (for much smaller amounts of money), yet the amount of paperwork involved was *literally* immense - so I gave up.
    (the irony of course, is that larger companies need the grants less..)

    Not to mention the politics involved. If Krome were financially challenged short-term, it would definitely be in the Queensland/Brisbane government interest to help them out - it would be a real blow to the state if Krome went down (and a real boost to Victoria if they did).

    Anyway, my 5c.

  • 32. Grover - Wed, 15 Feb 2006 13:8:3Z
    Wowsers... I gotta stop visiting porn sites and get back to sumea more often :)
    I think there is a huge amount of validity in what pd, Cynical Fan and co have to say. There words are not ANTI industry, but the words of logic. Just think about it a little. I'll put it in really simple terms:

    Big company making money, gets huge grant. Why?
    Small company struggling gets little/no money. Why?

    It was said earlier but feeding big companies money doesnt boost the local indsutry. You need investment all over the industry to do that. From education, to startups, to R&D centres to middle and large companies. But it has to be effective in all areas, there is no point plugging the dyke in one spot only to have ten holes appear elswhere...

    Big companies in Aus, in all industries have always been given this sort of 'special' treatment though. From car makers to electronics firms and resource sectors.. Another example that big game companies benefit: In Qld, if you have more than 80 employees you get a payrol tax discount (50(percent)!!!). There are also services discounts, rates subsidies and so on.. but not for the little companies, only for the big ones.

    What this in effect does, is make bigger companies less efficient, and less able to compete against rapidly changing trends. Overall.. its a bad idea.. and will dilute the ability for the local industry to be able to fend for itself against the OS competitors.. I welcome the incentives the gov is showing, but its a typical "mates" handout.. rather than an industry booster.

  • 33. Paul - Wed, 15 Feb 2006 13:11:11Z
    As a side note, one of the stipulations of the Commercial Ready grant program is that the company be able to make up half of the costs of development. Ergo, a smaller company would only be able to apply for a smaller grant - Commercial Ready doesn't cater to start ups unfortunately. The Government grants program that deals with the lower end of the revenue spectrum is COMET, with grants up to $64 000 for small businesses. However, COMET specifically precludes the money for being used to cover living costs, so again it's useless for start ups.

    The closest useful thing I ever read about was the Digital Media Fund's start up program (the name escapes me), but from the comments I've read, it sounded like it was the same old people begging for handouts. Even then, it was confined to Victoria, so it was useless for the rest of the games industry.

    Presumably, the engine is going to cost $3.4 million to develop. I don't know if Krome factored a game into those costs, but I would've thought that quite exorbitant. For that amount, I would hope they're making something that blows Unreal right out of the water, or it's not going to be worth the effort.

  • 34. Shams - Wed, 15 Feb 2006 15:33:38Z
    I looked into some of the DMF (and FilmVic related grants in general), but found the same sort of problems with most of them. Nocturnal wasn't exactly a conventional company, so it didn't really surprise me that we didn't fit into any of the exact categories created.

    Still, I did find most of the 'fine-print' disturbing for most of the grants I looked into. In short, most of them are actually interest-free loans. You still have to pay the money back in the future. And some of them actually handed partial IP rights over to the government, i.e. they effectively get a profit share of current/future apps/games.

    In the end, I concluded that approaching a bank and taking out a decent overdraft was actually better (in long terms) than a grant - just more risky.

    I'll be absolutely astounded if Krome manage to create a world-class, competitive next-gen engine. I can only imagine the time and money that has gone into Unreal Engine (or even Renderware), and unless Krome has a significant starting point its going to take them a couple of years just to get something decent running for the PS3. Just the code to create *efficient* (packet optimised, assembler driven, etc..) rendering pipelines on the PS3 will be difficult enough once you throw in some special effects.

  • 35. kazi - Wed, 15 Feb 2006 21:27:32Z
    Krome does have a significant starting point; it's public knowledge that we've had a dedicated engine team developing a proprietary engine for the last 5+ years. It's used in all of our current-gen games. I think it stacks up quite well compared to most current-gen console engines (particularly the ps2 unreal engine, going by recent comments made here), and it continues to evolve each year.

    From the ground up our engine has been developed for consoles. Any game developer will tell you that there's a big difference between developing a PC game and a console game, likewise for the engine that drives them. Our engine has been developed from the ground up to be a cross-platform engine. As opposed to some engines which have been developed for PC and then ported to other platform(s).

    I think it makes more sense for startups to go with tried and tested middle-ware solutions personally, not well established companies that have been developing their own tech for several years. It's up to the individual company to weigh all the pros and cons and make a decision on which path to take. It's a critical decision, one which can determine the outcome of a project, indeed, a company's success or failure.

    I can't comment on the government grant system. I have no idea how it works. I do agree with many points that have been raised in this thread though, and can understand why people question Krome's need over others - I can't comment either way. I don't know how the system works; I'm just a programmer, not an accountant.

    Personally I'd love to see all local developers benefiting from governement assistance, be it tax incentives, grants, or whatever. However, I don't think small companies should receive grants just because they're small and need funding to survive. It's just not sound business sense unless it's a VC that's willing to take a risk and piss money away.

    I think small companies must have a solid business plan, and prove that they have the means to not only survive with the aid of funding, but also that they can deliver on the promised goods within the promised time frame. The same kind of thing publishers expect before handing over bag fulls of cash each milestone. If the infrastructure isn't setup for the local industry to pursue such grants when they can prove that they are worthy, then something is definitely wrong..

  • 36. pb - Thu, 16 Feb 2006 8:16:22Z
    So kazi's logic seems to be "Krome has a good engine, good technolgoy, experience etc so they can make the most out of a grant".

    Now if we're going to apply this logic, why doesn't Tantalus get the grant? Their technology is much better, they have much more experience.

    I'm not sure where you get this idea that Krome's engine "stacks up quite well" (well, except by comparing it to PS2 Unreal) but even some of Krome's own engine team don't think its very good.

    The fact of the matter is that the answer to the question "What sets Krome apart?" is simple: government access.

  • 37. Shams - Thu, 16 Feb 2006 14:12:19Z
    Personally (and no doubt Im biased having had my experiences with Nocturnal), I would love to see some tech funding for startups. Take $1mill - split it into 20x$50k grants, or 10x$50k and 5x$100k - and distribute them among startups who have ideas which are different, unique and solid. Obviously there have to be some limitations and rules - but if something like this would have been available when Nocturnal started, it would have slashed 1-1.5years off our development time, which would have made a world of difference to the way the business turned out.

    After all, $1mill to the government = nothing, and if even one of those startups becomes successful the money will be returned. Part of the problem I see in Australia, is because most of the money comes from OS - any good tech or ideas that are funded, end up OS. If grants like this were available (with the stipulation that the tech has to remain in Australia), I think the industry would be much better off than sending much larger, one-off grants to one developer (in a really competitive environment). The reality is, that every $ sent to Krome disadvantages every other medium sized developer.

    I also found this disapointing when I started Nocturnal:
    - I was not eligable for any form of dole, or unemployment benefit as I was working for myself
    - I was not eligable for the Newstart (or whatever it is called) funding that can be paid to startup companies ('as Nocturnal had already been running for 6-12 months). This is roughly equiv. to the dole, and can be paid out to someone starting a company for the first 12 months.

    If I was sitting on my butt watching TV all day, the government would happily fund it - but not when you are actually working hard for yourself.

  • 38. kazi - Thu, 16 Feb 2006 14:28:49Z
    No pb, the core of my post was in response to Sham's post:

    "and unless Krome has a significant starting point its going to take them a couple of years just to get something decent running for the PS3."

    I expressed my personal views on the kind of requirements I'd imagine would be needed to receive government funding, of which I'd also imagine Tantalus would meet. I didn't attempt to explain why Krome received a grant. As I said, I don't know how the system works.

  • 39. CynicalFan - Fri, 17 Feb 2006 2:58:16Z
    From the top of my head, Commercial Ready is available to startups with amounts as small as 50k being sourced as long as you can match it dollar-to-dollar. COMET is not grant funding but actually VC funding. Big difference and one I would stay away from if I were a startup, in that VCs will want a slice of your studio that they will then sell off to get their profit, and they will probably be only interested in middleware companies - Angel investors on the other hand are more likely to be interested in approaching investment as they do in film, investing into the project and taking a percentage of the royalties as profit from their investment, they can also invest for other reasons other than just seeing big dollar signs at the end.

    Unless you are a lawyer and have read the final docs that need to be signed to get such funding, I wouldn't jump to conclusions about such sources. Yes, you probably will have to pay the interest-free development loans / grants back, but, usually only if you have actually made a profit - otherwise they are not going to bleed you dry if it did not make any money. Yes, they will probably have a percentage stake in the project or studio - depending on what funding you source and what the deal is that you manage to strike - but once you pay that funding back they will probably only ask for a mention in the credits. Also, that percentage may not actually be for the whole project but rather for a stage of a project - like 10(percent) of the initial pre-production phase rather than 10(percent) of the whole project.

    Government sources of funding are usually there to promote growth, sustainable growth, not to really generate a profit from investing - as I understand it, though whether they actually promote growth or just invest into funding blackholes, is something that could be argued. Most of it just comes down to an*l government red-tape - bureaucracy. So they have you document everything, even if it doesn't even matter to them - they just love the paper work, and in this way they can be just like any other source of funding, even publishers with their inflexible accountant like milestones and delivery expectations.

    But hey, don't take my word or anyone else's, do your own research on it ;).

    Personally, though I see there being a lack of funding specifically for the industry, I don't think that is the real problem, the problem is perception by experienced developers - meaning individuals - that are needed by startups to be successful. Especially programmers, as they seem to be very risk averse, even though the risk they perceive is not as great as they believe, and the security that they perceive in being a part of larger / more established studios, is not all that it is cracked up to be.

    For instance, a lot of these larger studios have been hiring like crazy and absorbing talent, kind of like a bear gains and stores fat for the winter in order to survive the the harsh winter. They've put on all sorts of projects: current-gen, next-gen, handheld, mobile, etc. Most of these projects are merely thrown together and poorly planned titles that only have the outcome of attracting publisher funding for more fee-for-service work. The possibility of all these projects securing funding is not that great, and the possibility that the funding secured can be stretched over all their employees is also slim - unless perhaps a publisher acquires them as a first-party developer.

    So what happens? Well they manage to survive like the bear does, but, like the bear they have burned up a lot of excess fat (talent), though which may be rich and useful to the bear (studio), gets discarded anyway. Unfortunately like the bear, they just don't know how to do anything else as they just don't have the know-how.

    So the studios will probably shrink - not exactly "job-security" if you ask me :/

    Experienced individuals might actually find they have more job security with leaner and smaller studios - even startups - that have a more focused approach to development - like 1 to few titles or just focusing on next-gen or mobile development for example - and also have a more methodically throughout, planned and documented out approach to development, with the aim of creating original IP.

    These guys have clear goals and aims in what they want to achieve and how they want to achieve it, and are driven to succeed. Unlike the majority that are just putting together as many projects as possible, most probably poorly planned, in the hopes that one will get funding in the way of fee-for-service work, and the studio will survive in some form - with the founders not having to miss a pay-check as talent gets laid-off.

    One last thing, I recall reading a piece of business strategy that has stuck with me over the years, and that is that you should: ruthlessly reinforce success and starve failure - and I am going to assume they meant real success not the illusion of it.

    Which ties into the following comment that was made: "However, I don't think small companies should receive grants just because they're small and need funding to survive." Well, I could reason the same for large companies, as propping them up is a waste of funding as well. They will never create more wealth than they have absorbed, and funding them will not progress the local industry but rather stunt its growth or even stagnate it.

    I think Shams is right, if that funding was given to startups with original ideas and approaches, that would probably grow the industry more and create far more stability, unlike the unstable growth we now have with bloated studios giving the impression of growth and stability.

    But then again, I could be wrong and just talking out of my arse like so many others do in this industry :).

  • 40. CynicalFan - Fri, 17 Feb 2006 3:13:43Z
    What I failed to mention is that getting funding isn't as difficult as people make it out to be or perceive it to be. As long as you are methodical in your planning and documenting, have done your research to support your investment opportunity, and, have the talent in place to pull it off. That last part is very important, and depending on what source of funding for what stage of development, even more so - especially experienced programming talent.

    Don't even bother if no one on your team doesn't even have any development experience, especially substantial development experience like lead on a major AAA title that has been released - not just a junior janitor credit on a mod or something ;).

    You'll just be wasting your time not to mention alienating potential sources of funding for the industry :P

  • 41. NoSpam - Fri, 17 Feb 2006 11:4:13Z
    CynicalFan "But then again, I could be wrong and just talking out of my arse"

    You said it!

  • 42. MarkSA - Fri, 17 Feb 2006 12:28:34Z
    Hmm, if I had $1.7 million dollars. I would be more than happy to pay people to help me finish it. Pity the money is foar developig a gam eengine
  • 43. MarkSA - Fri, 17 Feb 2006 12:33:40Z
    Sorry about the spelling. I meant to say help me finish my game. Pity the money is for developing a game engine
  • 44. CynicalFan - Fri, 17 Feb 2006 13:12:23Z
    Ah, yeah... that's what I said alright NoSpam. Thanks for stating the obvious. Must be nice knowing that you have a completely redundant purpose in life.

    You're obviously a highly articulate and witty individual that has a deep insight into this industry. Judging by the complete lack of argument in your comment. With your keen writing skills, you must be awfully good at writing job applications. Good for you. Someone with your clear mental aptitude and sharp perceptions will probably need them in the years to come.

    NoSpam, instead of SPAMMING the comment threads with your useless remarks, how about you actually right a constructive comment or just don't bother at all?

    How about you actually show some insight and ability in writing an effective remark / comment / argument to someone else's? Like by stating why you feel a certain way, making sure to give examples / explanations to these in the way of support.

  • 45. Anonymous Coward - Fri, 17 Feb 2006 14:0:50Z
    CynicalFan "NoSpam, instead of SPAMMING the comment threads with your useless remarks, how about you actually right a constructive comment or just don't bother at all?"

    You said it!

  • 46. Anonymous Coward - Fri, 17 Feb 2006 14:39:26Z
    well, i've seen the new game they're developing, their engine is still quite shoddy, they appear to have next to no clue about next gen tech, and their internal politics are so deeply rooted that they are more concerned with cronyism than what the best approach is.

    Perhaps if Krome's attrition rates were not so alarmingly high (presumably their HR practices are as lacklustre as their production pipeline) they would present a more favorable recipient of this grant. as it is, they will most likely squander it on trips to romania to take photograpsh of rocks.

    i agree that the Serenity engine presents itself as a far more logical benefactor of this grant, and i have no doubt there are dozens of startups of which i am unaware that would put the funds to infinitely more effective uses, as they would understand the role of the underdog, not simply slap it on top of the pile as they pack their bags for L.A.

  • 47. kazi - Fri, 17 Feb 2006 21:0:54Z
    And you were at Krome for how long AC?
  • 48. Grover - Sat, 18 Feb 2006 1:43:37Z
    Really, if you think about it, why not hit the casino - 1.7 million on Red thanks. Its roughly the same sort of return rates as investing in a game. :)
  • 49. pb - Sat, 18 Feb 2006 13:10:0Z
    Kazi, so are you saying that Krome does have a significant starting point in developing next gen tech? If so, what is it? Or are you still claiming that their engine "stacks up quite well"?
  • 50. Cynical Fan - Sat, 18 Feb 2006 13:27:45Z
    Anyone with half-a-brain when it comes to game development, and has development experience, can tell quite easily how great Krome's technology creation abilities are just by looking at a few screenshots for Ty or watching a promo vid - better yet by playing the game, which I will admit, I have not.

    After all, if the tech was so great, why establish a studio down in Adelaide for the ex-Ratbags that can't move interstate for whatever reason? I'm assuming it was for technology reasons, after all put a screenshot of Ty for the PS2 up against Slipstream or Scavenger for the PS2 and it is clear which one is technologically superior to which - after all the graphical demands of a toon-like game from an engine aren't as great as say Scavenger's are.

    Hell, put up a screenshot of Ty up against that title that the defunct Evolution Games developed for THQ and it is clear which one at least looks better as a screenshot on the surface. Ty's engine is not even that great a current-gen engine for the PS2, I doubt it makes a good starting point for a next-gen one for even the PS3 - more like you'd start from scratch for the most part.

    Though, I am not an experience engine and PS2 programmer or even a programmer, but, I believe PB is.

  • 51. CynicalFan - Sat, 18 Feb 2006 13:27:56Z
    Anyone with half-a-brain when it comes to game development, and has development experience, can tell quite easily how great Krome's technology creation abilities are just by looking at a few screenshots for Ty or watching a promo vid - better yet by playing the game, which I will admit, I have not.

    After all, if the tech was so great, why establish a studio down in Adelaide for the ex-Ratbags that can't move interstate for whatever reason? I'm assuming it was for technology reasons, after all put a screenshot of Ty for the PS2 up against Slipstream or Scavenger for the PS2 and it is clear which one is technologically superior to which - after all the graphical demands of a toon-like game from an engine aren't as great as say Scavenger's are.

    Hell, put up a screenshot of Ty up against that title that the defunct Evolution Games developed for THQ and it is clear which one at least looks better as a screenshot on the surface. Ty's engine is not even that great a current-gen engine for the PS2, I doubt it makes a good starting point for a next-gen one for even the PS3 - more like you'd start from scratch for the most part.

    Though, I am not an experience engine and PS2 programmer or even a programmer, but, I believe PB is.

  • 52. Anonymous Coward - Sat, 18 Feb 2006 15:43:38Z
    Yes, they should leave all of those losers in Adelaide to waste away on the dole. They should stop making games altogether since CF knows his stuff. PB too, that's why they are industry leaders, according to their posts on this site. Their engine isn't as good as the defunct companies engines so they should stop that, too. And they shouldn't hire anyone either since their engine is no good, and stuff. DON'T TRY AND MAKE IT BETTER GUYS. Give up!
    Everyone at Krome, go to THQ and Pandemic, they are much better. Its a pity that Krome chose to hire more people, since know they have to fire them, and stuff, in order to close down because people on Sumea said so. Go Home Guys!

    That is my opinion and it is LAW!
    Bow down and worship me before I destroy you all

  • 53. CynicalFan - Sat, 18 Feb 2006 16:58:17Z
    Please, I am not going to cry about Ratbag nor do I think you are being realistic. They would have gotten jobs anyway, especially the programmers. And don't give me a whine about families and not being able to move away from Adelaide, as that is a want not a need - welcome to game development ;). They can always look for a job in another industry if they are that desperate to stay in Adelaide. And how many people actually got a job by Krome's move exactly, and how many of them were: programmers, artists, designers and QA? Or are we just talking about the poor unfortunate programmers getting a job that out of all disciplines, are the ones that find it most easy to find work as they are most in demand in game development.

    Let's shed a tear for them, as I am sure they will experience quite a lengthy period waiting in line for the dole instead of walking almost immediately into another development gig.

    It might be a nice humbling experience for them to do so in fact, they might even come to wonder why it is that certain developers get development welfare over others - all because they have been around the longest, yet, have nothing to really show for it. They may even wonder why there isn't more support for startups. Speaking of startups, what happened to the Adelaide one that I read about on Sumea, is this still going forward or did that come to an end when Krome headed into town. If so, I wonder what they might have achieved if they were given time to give it a good go - if you guys are still at it BTW, hope you guys have a good 2006 :).

    And don't paint Krome to be saviours, if it wasn't them, then some other studio would have given them jobs - as at the moment talent seems to be in demand. Perhaps smaller studios may have secured their own funding and have been in need of talent, that Krome has now gobbled up. The point is quite simply that they would have found work. Period. So would have Krome's employees if it went under, if they were good enough.

    That defunct company you mention is I believe now THQ up in Brisbane. And I would think that Pandemics work is a notch or two above Krome's ;) Especially the much hyped Ty that is apparently the "holy-grail" of game development in Australia. I wonder how well it stacks up to Destroy All Humans? Not that I would say that they are a 100(percent) Australian studio, and I also wonder how much of the title's success is due to overseas talent / know-how filtering to them - much like I wonder with every studio that is part of a larger international whole, beyond the publisher sweat-shops.

    If Krome didn't get that funding, then that funding could have gone elsewhere as well as the talent. And I also have to ask myself, why if they are so successful did they need $1.7m from Ausindustry in the first place? I also have to ask where the funding they used to match it came from exactly, their own bank accounts or perhaps a pledge from a publisher? I wonder how long they could of kept the 150 people employed for if they had not gotten that funding. Though I don't suppose I will ever get a clear answer from Krome.

    And don't give me any BS about those poor employees and how we wouldn't be better off without Krome. Those employees would have gotten jobs elsewhere, perhaps have started their own studio or at least joined smaller studios / startups that were making headway and of need of talent - and we would have more studios, perhaps one that is not reliant on developer welfare. Anyway, what is the point of a studio, a business, if is constantly reliant on outside sources of funding to keep it going - whether they be government sources or publisher funding for more fee-for-service work. That is not sustainability nor real growth, just a cheap labour farm for a publisher and a funding blackhole for the government - tax payer's money used to keep people employed doing their hobby... you have got to be kidding me, right? Though, perhaps that is an extreme case that does not apply to Krome but other studio in Australia, but then again.

    FYI: I for one never said I was an industry leader, and at least unlike some, I haven't proclaimed myself to be one. Leadership is a quality that many simply have via a title, via a position, yet only few have via character. Whether I have it or not beats the hell out of me, I'm just someone who does not like having to eat other people's shit and say: "Yes please, can I have some more?" I have a brain and like using it so as to think for myself instead of letting the industry hype (PR / Marketing) machine do that for me. If you want to believe everything you are told and read, that is your problem, not mine. My problem is seeing an industry with serious hurdles for the future, yet does not want to face them and address them, as it may mean a few studio have to close their doors so that funding and talent can go to other studios with a more progressive outlook.

  • 54. kazi - Sat, 18 Feb 2006 18:49:14Z
    Do you even read what you write CF? If this, if that. I wonder this, I wonder that. I'm assuming.. So on and so forth. The speculation-o-meter was going through the roof! You have a creative mind, I'll give you that. However, your lack of respect for other people in this industry, and I don't mean professional respect, I mean just plain old respect in general for other people trying to make a living and support their famlies is quite dire, and prevented me reading a good portion of your last post. Maybe the context was lost. Cliff notes perhaps.

    I have met some of the Adelaide guys, and a couple of them have relocated to Brisbane. They are good people, much like most people in this industry, and aren't deserving of your disrespect and criticism. If you're so good, I honestly can't wait to see what games you help bring to fruition. Not because I want to see you fail and say I told you so, on the contrary, I want to see you succeed because I think it's awesome to see great games being made in Aus, no matter who made them.

    The Ty games were made for a younger demographic. Lots of kids love the game, we get fan mail with hand drawn characters from the Ty series - better drawings than I could hope to do. This fan mail comes in from all around the world, which I think is quite humbling and makes the teams involved proud. The kids usually get a thank you note and merch in return for their hard work :)

    So while Ty might not be the holy grail of the graphical world to you (we've never proclaimed it to be), it does feature a lot of tech beyond just rendered polygons that make for an enjoyable game experience (and more enjoyable development experience!). Lots of little things that most people don't think about or consciencously notice when playing a game.

    pb: We're developing a next-gen engine, it's in very good hands, hands that probably want to throttle me for opening my mouth on these forums in the first place :)

    To everyone else: the amount of speculation and rumour mongering based on chinese whispers and circle jerks isn't healthy for the local industry. It's not a great way to foster a friendly community either, but then that's not the intention here is it? :/

    Let the Spanish Inquisition continue!

    kazi out.

  • 55. CynicalFan - Sat, 18 Feb 2006 19:13:30Z
    I don't have respect for hype, and I don't have respect for spoiled brats. I'm off to the city for a much deserved night out.

    CF over and out ;)

  • 56. Krome employee #83 - Sat, 18 Feb 2006 19:56:40Z
    Krome knocked you back for a job hey?

    Boo hoo.

  • 57. Cynical Pwned! - Sat, 18 Feb 2006 21:12:18Z
    Taking a well-earned break from masturbation, heh CF?
  • 58. Grover - Sun, 19 Feb 2006 2:36:4Z
    Hrm. Now that is funny - I happen to actually agree with CF. You see he doesnt disrepect the people themselves only the hyperbole that litters the Aus game industry. For example Ratabg most often referred to themselves as "leaders in the industry" and one utterly classic comment in the Advertiser here in Adelaide said "The inventors of 3D .." geez.. so you wonder where the cynicism might be sourced? And with their lacklustre production of titles since PowerSlide (that really was brilliant imho) .. how can anyone not question their development capabilities - the hyperbole was certainly way out in front of the reality.

    Ratbag also soaked up all the local talent too, so it made other companies harder to startup there, hence when Ratbag folded, there simply was no other gaming work - what Cynical fan said is true. Regardless of their situation a programmer or artist could move interstate for game work, its a pity it happened, but hardly unusual (under the circumstances esp) and if you want to stay in the games industry its a reality in Adelaide, that you will have to move elsewher - thats not a personal attach, thats simply facts. However, kazi you insinuate other meanings from the context, often an example of the hyperbole.. or diversion of truth that many people seem to love to purport.

    This, sadly, is how the game industry here works. There are alot of accolades for all sorts of things, which is good, but sadly these accolades are often overblown and they are to the detriment of our industry - why? Because we keep going backwards not forwards. Long term studios closing is NOT a good sign, and investment being funnelled to a 'successful' company must surely be questioned in itself? If Krome is in need, then say so, say the money is to help out a struggling company. Aussies LOVE battlers..and I guarantee noone would even blink if Krome was doing it hard.. but if you are doing so very well, what is going on? Whats in it for the tax payer who is funding the engine of a largely, supposedly, successful coimpany?

    I have had the privelidge of working on a few bits and pieces.. and kazi is right, there is alot you dont see that makes up an engine and can be just as critical in making it a 'great' engine. However, this is where my reference to hyperbole comes in. There is simply no way in hell you can compare Kromes engine to something like Unreal, or Renderware, or CryTech for instance. To even compare your engine to Unreal's, is completely being asinine. I do hope eventually your engine can be compared, but the idea of comparison is just a marketing ploy, and completely unrealistic in comparitive terms.

    Some things still beg to be questioned though - how does Krome justify our taxpayer dollars? What is the national/state benefit of that funding? Is it purely more jobs? If so, is it a sustained level of more jobs, or just an interim thing as we have seen Ratbag go through for instance. What about other companies, what sort of dispersion of funds is occuring elsewhere? Is Krome the only lucky recipient of such large amounts? If so, why? Cynical also points out that single large funding grants wont necessarily boost the industry, merely prop up a company that shouldnt needing propping up according to their own hype? They are doing well arent they? These are the questions many here are asking..

    btw.. people making personal attacks is often a sign of wanting to ignore the issues, and not tackle the real problems.

  • 59. CynicalFan - Mon, 20 Feb 2006 14:21:11Z
    Nice post Grover.

    And no I didn't get knocked back for a job as I have never applied with them, nor will I most likely do so either, Queensland's climate is just too hot and humid for my likely - sorry to deflate your fragile ego on that one ;).

  • 60. Anonymous Coward - Wed, 1 Mar 2006 4:48:38Z
    You guys crack me up.

    Dont we all have short term memorys. Why are you calling Krome a big company. They were a start up juts like everybody else. 5 people 5 years ago. Or do you think they just started with 150 people yesterday.

    I dont know weather they got funding or not to start up. But they have gotten to were they are today not by handouts but working and not whinging like people here, just like all the other developers in Autralia, Torus, Tantalus etc. at least they are giving it a go, instead of just whining like school girls. I hope if you people have real jobs that you spend as much energy creatively as you put in whinging here.

    Hey CF if you have all the answers. Why dont you start up a studio, it must be pretty easy you wont make any mistakes. Looking forward to your first AAA next gen game. Easy find a team, build some technology, put in your own money, hell we wouldnt want a publisher polluting your genuis, dont forgot to add a little bit for marketing, maybe another 4 or 5 million
    Whens the ship date I ll pre order a copy. We all can't wait

  • 61. pb - Wed, 1 Mar 2006 8:16:3Z
    Tantalus and Torus didn't take $25 million in tax payers money. They also have better technology. I know its not your intent but you're actually dissing them by comparing them to Krome.
  • 62. Grover - Wed, 1 Mar 2006 10:42:14Z
    Krome have been around for more than 5 years :) I even applied 5 years ago when they had about 20 odd ppl working for them - great bunch of people too.

    To ask why my tax dollars are going where is surely a fair thing? Or rather than democracy would you like it hidden away and under the table? Being able to ask about what is happening in relation to the local gaming industry should be an important part to play for everyone - hence the excellent involvement of many posters here.

    I wonder which is whinging? Asking valid qyestions about dollars I have earnt, and where they end up, or complaining about posts asking these sorts of questions?

    Also Anon - you may wish to do a little bit of research, any monkey with 3 neural pathways can find out what CF is doing.. has done.. and is going to do. Id also suggest re-reading what CF has written, he doesnt have all the answers, nor pretends to, but simply wants people to question things and make some _informed_ decisions. As I wish people would do too.

  • 63. pp - Wed, 1 Mar 2006 20:28:4Z
    Don't think Krome is saintly - there are some very interesting business practices going on there
  • 64. Anonymous Coward - Wed, 1 Mar 2006 21:53:44Z
    Care to enlighten us pp?
  • 65. Anonymous Raw Cod - Thu, 2 Mar 2006 7:54:46Z
    "there are some very interesting business practices going on there"

    What, like actually paying their employees?

  • 66. Anonymous Coward - Thu, 2 Mar 2006 9:1:8Z
    Is this a game, like I Spy perhaps?

    "there are some very interesting business practices going on there"
    I spy with my little eye, interesting business practices starting with ..

    All management refuses to wear underpants to meetings?

    Employees are selected based on the size of thier knees ?

    Salaries are only paid on the first Friday of the month, but if the month starts on a Monday, then its the second Friday, unless the month has less than 31 days in which case its Tuesday ?

    On each working day at least one member of staff is required to dance naked on thier table thrusting their pelvis to the tune of "I like Krome Krome, we like Krome Krome"

  • 67. NoSpam - Thu, 2 Mar 2006 13:24:4Z
    Yeah, its good to get paid for a game that ships :)