Japanese crowdfunding nightmare: $170k vanishes, game's fate hangs in the balance
Tokyo—A promising visual novel, Shibuya Scramble Stories, is embroiled in a financial debacle that threatens its completion, exposing a troubling vulnerability in Japan’s crowdfunding ecosystem. The project, developed by Skeleton Crew Studio, initially garnered significant excitement and a staggering ¥55 million (approximately $340,000) through Ubgoe, a crowdfunding platform—funds that have, at least in part, seemingly disappeared.
A platform's blunder and a designer's frustration
Jiro Ishii, the game’s designer and a key figure at Skeleton Crew Studio, revealed the predicament in a recent interview with Denfaminicogamer. The campaign launched in May 2023, rapidly exceeding expectations. According to Ishii, Ubgoe was obligated to release the full ¥55 million by September 1st of that year. Instead, only half the sum materialized. The reason provided by Ubgoe’s CEO, Kazuo Okada? A “transfer error” that sent the funds to an unintended recipient.
The situation escalated. Following legal consultation, Ishii secured a memorandum from Ubgoe guaranteeing the remaining payment by September 16th. However, a mere ¥6 million trickled in. Okada then attributed the ongoing shortfall to the recipient of the erroneous transfer, claiming they refused to return the funds—a claim Skeleton Crew Studio finds dubious.
What's especially concerning is Ubgoe’s refusal to produce documentation proving the initial erroneous transfer. Ishii states that simple invoice verification would suffice, yet the platform remains silent. His legal counsel believes Okada's explanations are fabricated, suggesting Ubgoe could easily reverse the transaction with their bank—a step they have conspicuously failed to take.
Legal entanglements & unexpected obligations
Compounding the issue, Ishii discovered a clause within Ubgoe’s terms and conditions stating that all crowdfunding donations automatically constitute a contract between the project creator and the backer. This means Skeleton Crew Studio is legally obligated to finish Shibuya Scramble Stories and fulfill all campaign promises—regardless of whether they receive the pledged funding. “I didn't realize the project owner would be responsible if the collection agency ran off with the funds,