Hundred-thousand dollar Kickstarter cancelled amid threats and anger

Do we have to get used to the occasional failure?

A major Kickstarter campaign has fallen apart amid disputes between its founders, leading to accusations of fraud from its backers and renewing concerns over how the site deals with projects which fail to deliver what they promised.

Erik Chevalier, as part of a start-up board game company called The Forking Path, raised $122,874 to create The Doom That Came To Atlantic City, a inventive twist on Monopoly which sees players taking the role of Lovecraftian gods and destroying Atlantic City (the setting of the American version of Monopoly) in an effort to instigate hell on Earth.

The total raised was three-and-a-half times what the group had asked for, and let them promise increasingly intricate (and expensive) stretch goals, from new pieces in the game and rules additions to free stickers and artwork. In June last year they finished fundraising, and settled down to get the work done. The delivery of the game was estimated as November that year, and, although communication was fairly regular, that delivery date was missed. As late as June this year, the Chevalier confirmed that "the project is moving along" with a release this autumn. Then, this Wednesday, he announced the sudden cancellation of the whole thing:

After much deliberation I've had to make this decision. I've informed Keith and Lee and neither at all happy with this situation. Every possible mistake was made, some due to my inexperience in board game publishing, others due to ego conflicts, legal issues and technical complications. No matter the cause though these could all have been avoided by someone more experienced and I apparently was not that person.

The comments below the post contain a lot of angry people – which is unsurprising, given that amongst the backers are seven people who pledged at least $500, three who pledged $1000, and one backer who offered $2,500, in return for the designers hosting an afternoon of gaming and taking them out "to dinner at a fancy restaurant in Portland". Backers are trying to get the press involved, filing fraud complaints with the Oregon government, and demanding refunds – which Chevalier has promised to give, although the question of where the money to do so will come from remains unclear.

The designers of the game themselves have also weighed in. Keith Baker writes:

Lee and I don’t know exactly how the money was spent, why the backers were misled, what challenges were faced or what drove the decisions that led to the cancellation of the game. Not only did we not make any money from the game, we have actually lost money; as soon as we learned the true state of affairs, we engaged a lawyer to compel The Forking Path to come forward to the backers and to honor its pledge to issue refunds.

At this time, it's unclear how Forking Path is going to go ahead. Chevalier has issued a second statement, reiterating his intention to provide refunds, and Baker is preparing to provide a "print and play" version of the game – but someone is going to lose a lot of money whatever happens. Even if Forking Path hadn't spent a penny, 10 per cent of the funds received go straight to Kickstarter and Amazon; either the backers are out-of-pocket, or the company is.

This type of failure is going to get more and more common as Kickstarter grows, if only because the sheer numbers game means that there'll be more chances for catastrophe. In addition, there's an indeterminate amount of "zombie projects" at any one time – ones which aren't ever going to deliver what they've said, but haven't actually come clean to their backers about that. Given delays in delivery of up to a year are relatively common on the site, there could be a whole lot of people slowly realising that they aren't getting what they were promised.

It puts the company itself in an awkward place. Its success is built on customers' perception of it as a sort of Etsy-with-preorders, where you are buying concrete goods, just a little in advance. And the terms and services of the site back that up, with requirements for refunds in the event of non-delivery. But funding creative projects is an inherently risky thing. What can go wrong probably will, and if a creator hasn't budgeted for that, they're going to get burned.

That doesn't make it any nicer when something you feel you've "bought" never turns up; but it may be a fact we all have to get used to if Kickstarter is sticking around.

The Doom That Came to Atlantic City. Photograph: Kickstarter

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Live blog: Jeremy Corbyn hit by shadow cabinet revolt

Three shadow cabinet members resign following the sacking of Hilary Benn. 

11:47 The hope among Labour MPs is that Corbyn will "do the decent thing" and resign if (or rather when) he loses the confidence vote due on Tuesday. They are convinced they will win a majority but believe that reports of "80 per cent support" are wide of the mark. 

11:40 Labour's only Scottish MP, Ian Murray, has just resigned as shadow Scotland secretary. As I noted earlier, this means the job will have to be done by a non-Scottish MP or a peer. 

11:21 Shadow Scotland secretary Ian Murray (see 09:11) and shadow transport secretary Lillian Greenwood are expected to be the next to resign. 

11:11 Shadow minister for young people Gloria De Piero has become the latest to resign. It's worth noting that De Piero is a close ally of Tom Watson (she's married to his aide James Robinson). Many will see this as a sign that the coup has the tacit approval of Watson (who is currently en route from Glastonbury). 

De Piero wrote in her resignation letter to Corbyn: "I have always enjoyed a warm personal relationship with you and I want to thank you for the opportunity to serve in your shadow cabinet. I accepted that invitation because I thought it was right to support you in your attempt to achieve the Labour victory the country so badly needs.

"I do not believe you can deliver that victory at a general election, which may take place in a matter of months. I have been contacted by many of my members this weekend and It is clear that a good number of them share that view and have lost faith in your leadership.”

10:58 Shadow defence secretary Emily Thornberry has backed Corbyn, telling Michael Crick that "of course" she has confidence in his leadership. She is the fourth shadow cabinet minister to back Corbyn (along with McDonnell, Abbott and Trickett). 

10:52 Our Staggers editor Julia Rampen has written up Benn and McDonnell's TV appearances. 

"Two different visions for the Labour Party's future clashed today on primetime TV. Hours after being sacked from the shadow cabinet, Corbyn critic Hilary Benn was on the Andrew Marr Show ruling himself out of a leadership challenge. However, he issued a not-so-coded cry for revolt as he urged others to "do the right thing" for the party. Moments later, shadowhancellor John McDonnell sought to quell rumours of a coup by telling Andrew Neil Jeremy was "not going anywhere". He reminded any shadow ministers watching of the grassroots support Labour has enjoyed under Corbyn and the public petition urging them to back their leader."

10:46 Asked to comment, Tony Blair told the BBC: "I think this is for the PLP. I don't think it's right for me or helpful to intervene." 

10:38 On the leadership, it's worth noting that while Corbyn would need 50 MP/MEP nominations to make the ballot (were he not on automatically), an alternative left-wing candidate would only need 37 (15 per cent of the total). 

10:27 Jon Trickett, one of just three shadow cabinet Corbynites, has tweeted: "200,000 people already signed the petition in solidarity with the leadership. I stand with our party membership." 

10:14 McDonnell has told the BBC's Andrew Neil: "I will never stand for the leadership of the Labour Party". He confirmed that this would remain the case if Corbyn resigned. McDonnell, who stood unsuccessfully for the Labour leadership in 2007 and 2010 (failing to make the ballot), added that if Corbyn was forced to fitght another election he would "chair his campaign".  

10:12 Tom Watson is returning from Glastonbury to London. He's been spotted at Castle Cary train station. 

10:07 A spokesman for John McDonnell has told me that it's "not true" that Seema Malhotra, the shadow chief secretary to the Treasury, is canvassing MPs on his behalf. Labour figures have long believed that the shadow chancellor and former Labour leadership contender has ambitions to succeed Corbyn. 

09:51 Appearing on the Marr Show, Hilary Benn has just announced that he will not stand for the Labour leadership. "I am not going to be a candidate for leader of the Labour Party." Tom Watson, Angela Eagle and Dan Jarvis are those most commonly cited by Corbyn's opponents as alternative leaders. 

09:46 Should Corbyn refuse to resign, Labour MPs are considering electing an independent PLP leader, an option first floated by Joe Haines, Harold Wilson's former press secretary, in the New Statesman. He argued that as the representatives of the party's 9.35 million voters, their mandate trumped Corbyn's.

09:38 Here's Stephen on the issue of whether Corbyn could form a shadow cabinet after the revolt. "A lot of chatter about whether Corbyn could replace 10 of his shadow cabinet. He couldn't, but a real question of whether he'd need to. Could get by with a frontbench of 18 to 20. There's no particular need to man-mark the government - Corbyn has already created a series of jobs without shadows, like Gloria De Piero's shadow minister for young people and voter registration. That might, in many ways, be more stable." 

09:32 Despite the revolt, there is no sign of Corbyn backing down. A spokesman said: "There will be no resignation from the elected leader of the party with a strong mandate".

09:11 Shadow Scotland secretary Ian Murray is one of those expected to resign. As Labour's only Scottish MP, the post would have to be filled by an MP south of the border or a peer. 

09:01 Diane Abbott, Corbyn's long-standing ally, has been promised the post of shadow foreign secretary, a Labour source has told me. 

The shadow international developmnent secretary is one of just three Corbyn supporters in the shadow cabinet (along with John McDonnell and Jon Trickett). Though 36 MPs nominated him for the leadership, only 14 current members went on to vote for him. It is this that explains why Corbyn is fighting the rebellion. He never had his MPs' support to begin with and is confident he retains the support of party activists (as all polls have suggested). 

But the weakness of his standing among the PLP means some hope he could yet be kept off the ballot in any new contest. Under Labour's rules, 50 MP/MEP nominations (20 per cent of the total) are required. 

08:52 Welsh First Minister Carwyn Jones has joined the revolt, telling BBC Radio Wales that events make it "very difficult" for Corbyn to lead Labour into the next election. 

08:50 Tom Watson, a pivotal figure who Labour MPs have long believed could determine the success of any coup attempt is currently at Glastonbury. 

08:26 Following Hilary Benn's 1am sacking, Jeremy Corbyn will face shadow cabinet resignations this morning. Shadow health secretary Heidi Alexander has become the first to depart.

The New Statesman will cover all the latest developments here. John McDonnell, Corbyn's closest ally, is appearing on The Andrew Marr Show at 9:45.

"This is the trigger. Jeremy's called our bluff," a shadow cabinet minister told me. He added that he expected to joined by a "significant number" of colleagues. The BBC's Laura Kuenssberg has reported that half of the 30 will resign this morning. 

Corbyn is set to face a vote of no confidence from Labour MPs on Tuesday followed by a leadership challenge. But his allies say he will not resign and are confident that he will make the ballot either automatically (as legal advice has suggested) or by winning the requisite 50 MP/MEP nominations. 

George Eaton is political editor of the New Statesman.