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So...what is the downside here exactly?

Sony gets to see a bunch of new ideas for products and the public's' reaction to them before making any serious investment.
Sony employees get a chance to be more creative and possibly see one of their ideas become a real consumer product.
Everybody else (in Japan at least) gets the opportunity to see what these ideas are and can choose to help decide what ends up on the market, plus, assuming the funding is successful, you'd be one of the first people to get said product and get to say you helped make it happen.

On top of all that, it means Sony can show off products that otherwise might be seen as too risky to invest time and money in and let people decide if they want it or not.

Overall it means less risk for Sony, more freedom and opportunity for their employees, and more of a say in what kind of products the company offers for their customers.



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.