Frontier Developments, the game company founded by industry veteran David Braben, has announced an initial public offering on the London Stock Exchange's AIM market valuing the company at almost £40 million.

Read on. Frontier developments floats

It's interesting to see this development so soon after the news of double fine adventures realisation that the $3.3million they raised (after only asking for $400k) on kickstarter wasn't going to be even half of what they need to finish the project.

I suspect most of us have quietly wondered just how these games were going to be big with such little funding available to them, especially star citizen which is claiming to be a certain AAA with only $20million as their estimated final funding goal. If elite is tearing through funds so fast, you have to wonder how SC is doing, or rather, if they can actually produce a game which is AAA with such little funding.

Let's hope this mini revolution in the pc gaming scene that kickstarter seems to have brought about doesn't fizzle out through a string of flops and failures.

Seems to be a pretty accurate assessment of the situation, this altered gamer article has a good breakdown of what percentage of the overall budget is attributed to each area of production, and like you say there are ways which they can reduce the overall spend due to the way those costs are incurred.

Maybe things are shaping up pretty well then, they continue to rake in the funding at a hell of a rate in any case.