PayPal Freezes Account of X-Com Remake

October 10, 2011 -

PayPal can't seem to be able to differentiate between legal commerce and nefarious activity taking place in its service. For the third time in recent memory the leader in virtual currency has frozen the account of an indie developer over the money it has generated for making and selling a game. Game developer Goldhawk Interactive says that PayPal has locked down around $4,300 because its account has generated a lot of funds in a very short amount of time. While the money won’t shut down the development of its X-Com-like game Xenonauts, the company says that all the bells and whistles that it wanted to include may be off the table.

"There's enough left in our corporate bank account to get the game finished," designer Chris England wrote on the Xenonauts site. "Whether we'll be able to implement all the 'nice-to-have' features on that budget (such as our new UI style) remains to be seen, but we'll be able to complete it to the original spec on the funds we currently have.

However, losing our only source of income is obviously going to be disruptive to the project, as we were getting a good source of income from pre-orders up to this point," England said. "It's also not the ideal way to mark the start of my full-time work on the project. However, I'll keep you guys posted on how things turn out.
"

This is not the first time PayPal has flagged a game developer's account for generating a lot of money from sales. In September of last year PayPal froze the account of Minecraft maker Mojang because they generated $750,000 in sales. The makers of Project Zomboid had their account locked in May for much the same reason.

This is just speculation, but maybe this has less to do with PayPal and more with some sort of Homeland security edict about large funds being funneled through services such as PayPal. We honestly don't know the reasons for these lockdowns, but we do know that when this happens it can have a devastating effect on a small developer.. Not giving users some sort of notice seems wrong. If PayPal really wants entrepreneurs to use their services they need to get better at communicating with them when there's a problem such as this. People will understand more if they know what's going on and get some sort of due process.

Source: RPS by way of Kotaku. Thanks to Uncharted NES for the link.


 
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PHX CorpI'm going to do a test stream later today, if anyone is intrested07/31/2014 - 2:40pm
Andrew EisenYes, I'm such a big Nintendo dork that I read Nintendo's quarterly financial reports.07/31/2014 - 2:09pm
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Andrew EisenInteresting that EU had 10 games to choose from while North America only had four.07/31/2014 - 1:41pm
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MaskedPixelantehttp://www.mcvuk.com/news/read/special-report-retail-revolt-over-pc-code-strippers/013614007/31/2014 - 8:27am
ZippyDSMleeWouldn't they be able to afford and get done in a timely manner a general gba emluator for the 3DS? It seems to me if they want to make money off sales they need to do it.07/31/2014 - 7:25am
Sora-ChanAmbassador program, that's what I was looking for. Anyway the other games that have been made no longer exclusive to the early adopters got updates in their software. It'll only be a matter of time more than likely for the GBA to get the same treatment.07/31/2014 - 5:35am
Sora-ChanI might be naming it incorrectly when I say "founder" i mean the program for earlier adopters.07/31/2014 - 5:34am
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MaskedPixelanteOnce again, the 3DS already HAS a GBA emulator, it just can't run at the same time as the 3DS OS.07/30/2014 - 4:54pm
Matthew Wilsonyou cant street pass in ds mode ether, and if moders can make a gba emulator that runs very well on the psp as I understand it. you are telling me that Nintendo devs are not as good as moders?07/30/2014 - 4:49pm
Zenperformance. Halo 1 and 2 worked great because they actually did custom work on each of them...just like Nintendo does now lol07/30/2014 - 4:08pm
Zenexisting hardware while the GBA has to be emulated completely. Same reason the 360 couldn't run most Original Xbox games correctly, or had issues because they just did "blanket approach" for their emulation which led to game killing bugs or horrible07/30/2014 - 4:07pm
ZenSora/Matthew: It's not just Miiverse, but the whole idea of streetpass and things like that would be affected if the OS is not running. And just because a 3DS game can be downloaded and run does not mean that GBA can as easily. Those 3DS games use the07/30/2014 - 4:06pm
 

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