Earlier this week I reported that NASA had pulled the $3m worth of funding previously committed to an educational MMO project. Other reliable sources ran the same story (1, 2, 3).

Sean Hollister wrote a new story on the topic, including some interview material from Daniel Laughlin, one of the NASA project managers and recent WCG commenter.

1. Yes, NASA lost the $3m, but they have another $2m.
2. But, they're not going to spend that on game development. Instead they're going to spend it on "education experts" and NASA insiders
3. The non-reimbursable Space Act Agreement is actually Good For Developers because it means that they can profit from the game by selling it in stores or by some other means. If the development were funded by the government, "it would be illegal to be paid twice."
4. By not paying developers, NASA unburdens them from bureaucracy.
5. What developers are really bidding on is the right to a no-cost license to the NASA name.

I'll be the first to admit that serious games need complex, novel business models. But is this the one? The game developers take all the risk while NASA throws money at educational designers? I think I had this nightmare once. Does NASA even have a brand worth licensing anymore? "From the team that lost taxpayer-funded planetary probes and blew up two space shuttles comes PowerPoint To Space!"

Also interesting is how foolish the NASA crew were in managing the public expectations for their RFP. What other conclusion could anyone have come to but the one reported widely online? Now they just look like stooges who kiss the hand of government bureaucracy with reverence and contrition.

Earth to NASA: this isn't how the world works anymore. Get a grip.