Thoughts on the Indie Market

The Indie game Industry is a rather volatile and unpredictable scene, with very little structure or viable pattern recognition. Most of the success is down to exceptional marketing or dumb luck.

Essentially this is a purely a genre in which the game which is most appealing,most mechanically developed in a culmination of an overall “solid product” can succeed.
That being said the Indie game Industry is one of the fastest growing game industries (In Terms of Revenue and Unfortunately the amount of Games Released Per Year) and the beauty of it is that most game studios have the possibility to get their product released. There is however a small problem that the rate the new games are released doesnt even nearly begin to catch up to the actual revenue, and this IS a problem.

Now this of course is great for people wanting to publish their game and make a dream come true, it also means that the market becomes alot more saturated , and the disparity between the successes and the failures (commercially ofcourse, you can still have a GREAT game without it selling it well).

You may think that, well in any Market its good to have competition right? Competition gives you driveThere are many indie game developers. However, few are actual have actual publishers on their side. Most games are developed by a small team person and often does not have the marketing savvy to integrate the plans we have outlined thus far. Hence its hard to really outline the competitors : as there is just so many!

 

Light at the end of the Tunnel/New Developments?

 

If we cannot secure a deal with the Publisher for whatever reason, we should be perfectly equipped to go the pure ‘’Indie Route’’ with publishers such as Steam and TwitchDirect(Coming Q2 2017).

 

With the new changes to Steam’s format we are actually quite excited of what prospects it will give to us. (https://www.theguardian.com/technology/2017/feb/13/valve-kills-steam-greenlight-heres-why-it-matters)

This is good news and bad news for us. Good news because this will desaturate the market and make competition easier for studios/games who have a good plan and organization – and who don’t ignore the marketing/networking side of things (which we aim to very ambitiously cover : despite the lack of budget).

 

On the down side : the unsure stance of Valve on the entry fee to the Steam Direct format (currently stated as anywhere between 100-5,000 USD) could prove to be an issue to some developers. However we remain adamant that before now and June we could be able to get a potential investor/publisher to commit to us and cover those costs.

 

Currently, steam dominates as the as the release/publisher platform for most Indie(and in general) games as there are 400 Million Steam accounts and around 125 Million active users as of of these users pay cash for in- game benefits. The major market participants in this area are companies such as Zynga Inc., Electronic Arts, Inc.Microsoft,Blizzard(although only a small fraction of their larger products are available on Steam- as they have their own format in the form of BNet),Tencent and so on. These leaders hold large assets of active monthly players worldwide, possess majority market share and are seeing rapid revenue growth in this industry.

TWITCH – as a publisher ??

 

Recently streaming powerhouse Twitch.tv announced that they plan to function like a Publisher : they would be selling certain titles via the Twitch streaming platform itself. Now this is a very interesting thing – due to the fact that first of all, twitch is a massive streaming Platform (2.1 Million concurrent users Aug 2015, over 105 Million users as of 2016 data).

 

The way that the Twitch system would work would be that Twitch would take 25 percent of the sales, and the streamers of the game would take 5 percent, whilst the Game Developer would take the 70 percent leftover. Now this as a scheme would place it on the level of steam which also takes a 30 percent cut.

 

However the big thing to look here for is the 5 percent payment to streamers – now this payment would be from Sales of the game they are streaming – this is actually a very big help.

Due to the fact that the streamers will be getting money from their streaming successes, they would be more motivated to endorse the featured game and get it to sell – as it would benefit themselves – think of it as a new way to market your game –

Wouldn’t it be nice if someone with a large sphere of subscribers would come to you and ask themselves if they could stream your game and get you sales ? (as this deal would benefit all parties involved).

 

Anyways, this was me with my little rant, Hope I didnt Bore you to death , if you enjoyed it or have a comment or two, let me know-

With Regards,

Anton

(HasteHeist Marketing/Business Guy)

 

sources :

http://www.gamesindustry.biz/articles/2017-02-27-twitch-takes-on-steam-and-enters-games-retail

2 https://www.twitch.tv/year/2015

3 Steam Spy Data – Circa Jan 2017

4 Global Games  Market Report 2016 – Newzoo