Skullgirls Developer Lab Zero Games Facing PayPal Account Freeze Issues

The fighting game Skullgirls has become quite an icon in recent times. Developer Lab Zero Games opted to take the title to the Indiegogo funding, asking gamers to chip in for additional downloadable content that mainly included characters.

The game managed to collect a whopping $829,000 or so in the process. Lab Zero might’ve deemed the effort an expectedly huge success, but money-transfer giant PayPal is creating hurdles for the dev. PayPal was supposed to handle $700,000 of the amount, but instead froze Lab Zero’s accounts in the fear that funders might ask for chargebacks.

Apparently, PayPal is worried that if the developer does not deliver the things they promised, fans will demand their money back.


“I don’t understand… why? Is this seriously because people wanted their money back when their voted character didn’t make it into the final rounds of voting?

I think it’s sketchy, but their logic sort of makes sense.

Basically, they are terrified of chargebacks. If we spend all the money and don’t deliver and everyone chargebacks, Paypal is concerned they will be on the line for it. So they are effectively treating it as a loan. I mean, the guy flat-out said, “Until the threat of chargebacks has passed, Paypal is effectively financing your development.”

They also asked if we’re good for the $700,000 if something goes wrong. I said “No,” because, well… we’re not? The whole point of crowdfunding is to give us the money to develop stuff, not take out a loan.”

Currently, Lab Zero is holding a fan vote to decide which characters they should include in the expanded roster. Many gamers are already threatening to do what PayPal predicted. You can participate on the vote on the Skullgirls Facebook page.

Source: Eventhubs