
When game developers such as Double Fine Productions began raising large amounts of money from fans earlier this year, they opened up a new source of funding that competed with traditional investors such as game publishers and venture capitalists. Developer Zynga’s stock price crashed earlier this year, it took a toll on the larger game industry. The social-title giant’s stock meltdown meant lower payoffs for game deals, and the valuations of game-startup investments dropped accordingly. The topic came up at the recent investor panel at the YetiZen game accelerator.
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