I'm weighing in a bit late on this conversation, but I've generally had a
positive experience with open public testing. There are a few things I'm
worried about though. For one, as your application gets better, you start
competing with your final product. I'm also a little worried about people
burning out on the game before it's even released, but I think I can
circumvent that by adding a heap of new content for the final release.
Another problem is early conversations mention a lot about the instability.
That's normal in young applications but it might throw some people off.

As for the benefits, there were a lot of those too. It has built a great
community which you wouldn't have had if you had a surprise release. Once
everyone knows a new version is imminent, there is a lot of excitement too.

I started public testing extremely early because I really wasn't sure how to
proceed with the interface. Walking around a random dungeon had to have
special consideration. Plus all the important decisions about SAPI and
others were up in the air. Now I have a much better idea and I think the
next project will benefit a lot from that.

>From a game sales standpoint, I don't know if public or private testing is
better yet though.

Cheers!
Jason
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