Your Indie Game Will Flop and You Will Lose Money

  • 312

At the time of writing, a quick check of stats on steamspy for player unknown:battlegrounds reveals this chart:

A very basic analysis suggests 500,000 copies this month, at $30, minus maybe 40% for refunds/taxes/steams cut gives us:  roughly $9million this month. Total sales stand at 3 million, for a total estimate of $53 million so far since release 3 months ago. Assuming a lifetime doubling of that (conservative) that gives us about $100,000,000. income.

So the average income per employee there is a million dollars. original team size was 35, so assume that half the money goes to equity holders and its split equally between the 35, that gives them roughly $1.4 million each. In practice thats bollocks, because more likely 80% would be going to the equity holders and I’d guess 90% of that belongs to maybe a handful, at best 4 people? (I have ZERO idea, this is my guesswork), which means company founders are probably getting about $22 million from the game.

But the problem is, the chances of Joe Indie game developer achieving this are close enough to zero as makes no difference.  There are 348 pages of ‘top sellers’ on indie games on steam. Taking the mid point, and looking at the top game (I wont pick on it publicly, so lets not name it). Its an RPG with Zombies in apparently (that shouldn’t narrow it much :D). Steamspy says…. *drumroll*

3,500 owners. Top price has been $9.99, been out 9 months. Maximum conceivable income is $20,979 to the developer. In practice, as its been on sale, lets multiply that by 50% and get about $10,000.  Assume the developer is a single person with no other costs and keeps all the money: $10,000 a year, or roughly 1% of the revenue/employee as PU:BG.

Yes…these figures are very very rough, but I didn’t deliberately pick something bad, in fact I picked half way through the indie top sellers. Are we really thinking they sound so out of whack? This is a WINNER TAKES ALL market. You are either in the top 0.1% of indie game developers, or you are unemployed, with an expensive hobby where you make effectively free games.

This is nobodies ‘fault’. Steam didn’t cause it, Unity didn’t cause it. games got easier to make, and more people got access to PCs, development kits, computer skills and broadband. Its really no different from waiting tables whilst pretending to be an actress, or avoiding admitting you are unemployed by claiming to be a writer. 

Now, *some* people don’t flop, and do well. And that *might* be you, but I urge you, go into this job (like any other) with your eyes WIDE open. Your chances of success are incredibly, incredibly small. This is not a sensible career. This is not a wise career move. This is almost certainly personal financial suicide. 

Treat this as a disclaimer for my blog: You are reading the thoughts of a guy who was coding since age 11, has 36 years coding experience, has shipped over a dozen games, several of which made millions of dollars, got into indie dev VERY early, knows a lot of industry people, and has a relatively high public profile. And still almost NOBODY covered my latest game (in terms of gaming websites). Its extremely, extremely tough right now.    

 

Cliff harris is a 43 year old Game Designer and programmer from the UK. He also worked as a game programmer for Elixir Studios, and then as an AI programmer at Lionhead where he worked on ‘The Movies’. For the last few years, he has worked from home for his own one man company – Positech Games, making quirky and original strategy and simulation games.

Replies • 48
Solar

I only hope that potential game devs don't take this as a discouragement, but as an adjustment to their expectations instead. Some great ideas are coming from indie guys — but often swamped by people simply trying to pump out quick games on popular genres/topics.


AtagiKawa is cool

Indie games have problems to compete with the AAA games. Players wan't new content so fast. Even the big plaayers have problems giving so much new content. The AAA games jsut release a new version of their games with better graphics but still the same game. They have big teams and lots of money while the small indie basically have nothing.


Just create fast to make shovelware with trading cards and profit off of steam market place.


Maybe stop making pixel art early access low effort indie rogue-like wannabee trash and you could succeed. It's also to the fact that the indie market has a lot of really creative and great indie games like Don't Starve, Hotline Miami, Fez, Bastion/Transistor, Nuclear Throne, FTL, LIMBO, Super Meat Boy, Binding of Isaac and many more, where even regular good indie games have low chance of succeeding with this kind of environment.

Triple A games have a huge marketing team to advertise their games, like no shit they will have more players. Regardless if a Triple A games is shittier than an indie game in terms of quality of the game, it will most likely always have more players due to its marketing capabilities and being backed by a publisher.

It's also worth nothing that a lot of indie devs are not in for the money, which is why a lot of indie games tend to be more creative and fun than Triple A games, and they aren't pressured on a timeline or with the mindset that they must have profit. Many indie devs also have a second job, and they are making indies as a secondary thing, either for additional potential money, or just as a recreational project of sorts.

It's a saturated market where the majority of indie games are just standing on the shoulders of the critically acclaimed indies by borrowing concepts we already know.


Pica das Galáxias

Chances of having a hit game are similar to a hit movie, single or book.
By all means try it, but don’t make it your only plan.


Interstellar

Indie anything is an uphill battle. I ran an indie record label and by that I mean I threw disposable income at it because I liked the scene. We had fans, we sold CDs, but did anyone ever really make money? Not off selling CDs, some did ok off producing (selling beats to wanna be rappers who in turn were pissing their money away).