While these contests are motivating, I thought it was interesting what Tim Pickens said in this Wired magazine article about the prize money. He is a member of the Rocket City Space Pioneers team and helped build the craft that won the original X Prize in 2004.
“If you need the prize to make your team’s business work, you’re hosed. The prize money is an awesome consolation and a great way to recoup development costs, but it isn’t going to cover your mission costs. There are much, much less risky ways to make money. For the value of the prize versus the risk, you might as well be doing something else.”
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