Code Hero, a game designed to teach you how to make games, is completely out of money and cannot even meet its backer obligations.
In an update to Code Hero's Kickstarter campaign page, project lead Alex Peake broke a seven month silence on the game, which was funded in February 2012.
Peake explained that due to challenges along the way, development time has blown out far beyond expectations, with the result that the team ran out of money when still far from completion. Many staff have had to leave the project to find other work, and those who remained are unpaid.
For various reasons, physical rewards like t-shirts and USB drives were delayed, and eventually, Peake realised he couldn't deliver. Peake said he and the team had believed they would receive extra funding from another source, but all deals fell through.
The project's creators are legally obliged to offer refunds, but can't afford to do so. Peake has asked backers to patiently await either refunds or rewards, and will deliver them once he has funding of some kind. He has also promised to be more communicative, and given a full account of how Kickstarter funds were used to promote the project at two PAX events.