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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Benn vs McDonnell: how Brexit has exposed the fight over Labour's party machine

In the wake of Brexit, should Labour MPs listen more closely to voters, or their own party members?

Two Labour MPs on primetime TV. Two prominent politicians ruling themselves out of a Labour leadership contest. But that was as far as the similarity went.

Hilary Benn was speaking hours after he resigned - or was sacked - from the Shadow Cabinet. He described Jeremy Corbyn as a "good and decent man" but not a leader.

Framing his overnight removal as a matter of conscience, Benn told the BBC's Andrew Marr: "I no longer have confidence in him [Corbyn] and I think the right thing to do would be for him to take that decision."

In Benn's view, diehard leftie pin ups do not go down well in the real world, or on the ballot papers of middle England. 

But while Benn may be drawing on a New Labour truism, this in turn rests on the assumption that voters matter more than the party members when it comes to winning elections.

That assumption was contested moments later by Shadow Chancellor John McDonnell.

Dismissive of the personal appeal of Shadow Cabinet ministers - "we can replace them" - McDonnell's message was that Labour under Corbyn had rejuvenated its electoral machine.

Pointing to success in by-elections and the London mayoral election, McDonnell warned would-be rebels: "Who is sovereign in our party? The people who are soverign are the party members. 

"I'm saying respect the party members. And in that way we can hold together and win the next election."

Indeed, nearly a year on from Corbyn's surprise election to the Labour leadership, it is worth remembering he captured nearly 60% of the 400,000 votes cast. Momentum, the grassroots organisation formed in the wake of his success, now has more than 50 branches around the country.

Come the next election, it will be these grassroots members who will knock on doors, hand out leaflets and perhaps even threaten to deselect MPs.

The question for wavering Labour MPs will be whether what they trust more - their own connection with voters, or this potentially unbiddable party machine.