300k is what it will cost to finish the current vision of the game in a year's time. We have been working on the project in our spare time after work and school for almost 2 years. We feel that we are far enough along on our prototype to show our dedication and quality of work. Now we just need the support of the community to help us with the final push.
It's very unlikely however that you will raise $300K, even though your prototype is very good. And as I'm sure you know, if you fail to make the asked for amount, you get nothing. If you set the value to something more realistic, such as $50, you actually have a decent chance of raising the funds, which will give you a nice boost to help you along the way. Then in a few months time when you have an even better prototype, you can start another fundraising campaign.
I'm not sure that would be a better strategy. How many people want to donate to create a prototype of a game and not the full game? While breaking up the amount you need into smaller chunks may give you a better chance at getting some money, it's also adding more chances for you to run into problems. I think many projects on Kickstarter have a similar idea and that might actually be the cause of some the failures in delivery that we are seeing in the press recently.
We feel that it is a huge responsibility when accepting money from backers on Kickstarter. It is not a decision to take lightly when creating a project. For this reason, we spent a ton of time researching, analyzing cost projections, and budget planning to get the cost as low as we could, while still having the best possible chance of successfully producing the quality of game we expect as gamers.