I've got no objection to them making a better game with more money. However, if they claimed they could make a good game with x amount, recieved several times x amount, and now claim that the game they can make with that money isn't good enough, it won't exactly fill their backers with confidence.
It seems like the sensible thing to do would be to tell everyone what they've paid for so far and what specifically they need the money for now.
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