What To Learn From The Video Game Recession. And Do It Quickly.
Failure is always an option.
Last week, I wrote a blog post about how the video game industry seems to be entering a sad and painful period of contraction.
I've been writing these State of Indie posts for a long time. They're usually the most popular things I write. Last week, nobody seemed to care what I had to say. Nor should they. I'm a tiny, tiny figure in a big world, my time is past, and I'm writing depressing things.
But I still have a new RPG to sell (Geneforge 2 - Infestation, coming March 27), so the current grim conditions are very much on my mind.
So, the world is changing, and we need to figure out how to adjust with it. How do we need to change how we make our work? What do we teach to aspiring game makers? What does it take to survive?
I Feel Like a Traitor
I've been writing advice for making a living making indie games since 1997 or so. (My first site about it is still up, somehow.) In 2012, I wrote "Principles of an Indie Game Bottom Feeder", a much-read ode to the joy of this life.
And now here I am, being depressing and crapping on everything and wondering how many people I accidentally lead to ruin. I feel like a traitor.
After I wrote my last post about this mess, a longtime reader wrote me a long, thoughtful, heartfelt, sad email about how much hope I gave him and how much it hurts that I'm taking that away.
It's a bummer, man.
But my goal in all of this, all along, is to be honest. I'm not always right. I get things wrong all the time. I just never want to tell you anything I don't genuinely believe is the truth.
There are times for joy and ambition. And there are times to tread carefully. Times to take big risks. And times to cover your ass. If you can't adjust to both modes, you shouldn't start a game business. Or any other sort of business.
And It Feels Like The World Is Changing
Let's assume that the video game industry is going to shrink. Not go away, just shrink. A lot of people lose jobs. Companies go under. People in the industry end up leaving it.
There needs to be a period of mental adjustment. We need different plans. We need to figure out what questions we should ask so that we can start answering them.
Video Game Jobs Are Art Jobs. Plan Accordingly.
When a young person says, "I want to write video games for a living," it's just like saying, "I want to be a writer." "I want to be a film editor." "I want to be a musician/record producer/actor/poet."
It's good to have dreams. And is it possible to make a living as a musician? Of course it is. People do it all the time. But it's a hard, uncertain life. That's the price you pay for a life in art.
A life making video games is a life in art. It's easy to forget that because games do, in fact, make a ton of money. However, the ability to make bank while being an artist who makes video games attracted a LOT of other contestants, and high supply drives prices down.
Video game makers will probably always make more money than musicians or actors. However, it's always going to be a tough field to make a career in.
I get asked all the time by worried parents whether to encourage their kids' dreams of making games. I tell them what we've been telling aspiring actors for a lot of years: "If you could possibly have a happy life doing something else, do that instead."
Meanwhile, for a degree in Computer Game design, Digipen tuition is almost $60000/year now. I don't even know what to say about that.
Wait. People Invested In Video Games?
I've noticed that lately a lot of indie companies have been complaining that it is very hard to get investors. Some have given this as the reason why they went out of business.
This is how old and dusty and out of touch I am. Every time I read this, I think, "Wait. Indie games have INVESTORS? Like, I can say I want to make a game and someone might just hand me a sack of cash? REALLY? And I've been out here alone in a room squeezing my pennies and reusing art like a SUCKER?"
I totally see why indie game investors appeared. If you own a chunk of a megahit like Don't Starve or Terraria, you will do very, very well. But as they say about Broadway, "It's a place to make a killing, but not a living."
Due to changing economic conditions, investors now need to make money on their investments. The days when VRChat, an online world populated exclusively by frisky furries and literal children, can get $80 million in actual Earth dollars are GONE.
If You Already Got A Business, Go Cheap
If you want to live your dream, at some point you have to dream practical. When the meteors land, the rodents hiding underground survive. I have long proudly called myself a bottom feeder.
There are always going to be ambitious young people who dream of making it in this peculiar art form. I say, if you can go cheap, go cheap. You can get amazing assets of all sorts for cheap. License music, art, sound effects. Squeeze every penny until it screams. Only get something bespoke if you actually have to.
The problem, of course, is that people get driven in this industry by dreams. Not dreams of being a humble, scuttling creature like me. Dreams of actually running a COMPANY, with headcount and production values and influence. (And, once, shiny offices in a shiny building furnished in Modern IKEA.)
You have to be hard-headed about the math. Suppose you have a 2 person operation and you want to hire two more people. That will double your expenses. So ask yourself: Doubling your sales is difficult. Will these two new people double our sales? No, really. Will they? If not, do you really need the headcount? If you're not rich, ask this question about every new expense.
Along these lines, sometimes you won't like how people decide to reduce their budgets. Tempers are really heated about AI right now, so I don't want to say much about it. I want to avoid using it, but I'm also not going to get angry if a poor developer starting out uses it to get into the business. I mean, it's 100% going to happen. A lot. If someone thinks they need it to survive, desperation will keep them from listening to your opinions.
Where Goeth The AA (Two A's) Game Company?
A decade or so ago, we saw a mass death of AA game companies. Mid-size companies (10-30 employees) found themselves in a vise where they weren't big enough to keep up with state-of-the-art production values and marketing budgets, but they were too large and expensive to have cheap budgets. They tended to get bought out or just go under.
Thanks to the generosity of investors and publishers, we have seen a resurgence of the mid-range game company. We just call them indie now.
(Note that the biggest indie success lately, Baldur's Gate 3, was by an indie company that was able to grow BIG.)
However, the problems such companies faced back then are still here. They were sustained by easy money, but that is gone, replaced by tons of competition.
I would hesitate before trying to form a midsize game company right now. Have your end goal be writing and shipping the game, and plan whatever it takes to make that possible. Then, when you have a hit and can afford 20 employees, hire 10.
You Need To Compete With 'Free'
Suppose you have a realistic goal: You just want to get a game out there in any way possible. Fine. What's the next hurdle to overcome?
One of the things I say to ambitious developers is, "A lot of the best games in the world are free. Can you compete with free?"
What You Need To Do Hasn't Changed
The way for a poor, lone creator to sell their indie book/music/game has gotten harder, but it hasn't changed.
You have to have a Secret Sauce, something you provide that nobody else was offering. Something they couldn't get anywhere else. If people want something and you are the only one selling it, they WILL open their wallets.
This is why it is important to, as soon as possible, share your work with people. Watch their reactions carefully. They shouldn't just be tolerant of it. They should want more. They should be begging you for another chapter/song/game level. People should be taking your game home and playing it on their own until late at night. That's how you know you have something.
(This is also why people who want jobs in AAA should try making their own small games and mods. You need to show you can make things that compel people.)
It's become routine for those who make indie games to have contempt for gamers. It's sad and tiresome, this dumping on those who love us. The true thing is, gamers are natural evangelists! Alas , it's impossible to get Steam visibility and advertising is extremely expensive and unpredictable. The good news is that when people love your work, they will force it on their friends until it's annoying.
Everyone Finds Their Own Route
Me, I write turn-based, story-heavy RPGs. This is an evergreen genre. There are ALWAYS people who want this. But it's also a game that's hard to write well. I write something people want that there isn't much of.
Each of my games has a new world, a solid story, and a new sort of choice to make. This packed in a world dense with STUFF, so you can't turn a corner without finding something new. Plus, I can be funny.
This is my Sauce. Thus, despite the many flaws of my products, I can compete with Free and stay in business.
What is unique and special about your game? Unique and special enough that people will pry open their wallets? You need an answer to this question. Your answer, the one that fits the art only you can make. This is why art school is not necessary. Professors can’t answer that question, only you can.
Also, at several points in my career, I got lucky. At some point, you'll need a little luck.
It's Hard To Make A Business
This takes work. Years of work. You gotta hustle. Make forums. Talk to fans. Build a Discord. Have the tenacity of a cockroach. Do anything you can to get people to try your work, and refine it until they love it.
If, like most people, you fail, remember that failure is always allowed. It's almost inevitable, even for those with great skill and determination. Just take comfort in that there is nobility in creation.
And yeah, I'm telling you, "Just be as great as the greatest," as if it’s an easy thing. That's an almost sadistic goal to hand to someone. I get it. But if you aren't aiming for true awesomeness, why are you even doing this?
Me, I'll just keep on as a bottom feeder. My games aren't unique enough to be big hits, but they are unique enough to keep a small, happy fan base following along. It's all I ever wanted.
If you want to see how lame you can be and still make a living, check out Geneforge 2 - Infestation! Indie RPG, coming March 27! To make it, all you have to do is be better than me. Surely you can do that!
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I know even the likes of Larian Studios, the second coming of Bioware, have investors, but there are just too many glaring examples where I can’t help but see investor driven development as a blight on this industry.
Gaming is rife with examples where some belligerent nepobaby helmed conglomerate swooped into a successful gaming studio, bought it out, hallowed out its brain, and marched the resulting flesh golem off to die chasing some flash-in-the-pan fad or idiot trend.
The best games are still made by companies lead and controlled by actual, passionate gamers who want to make the best possible games. Not the most *profitable* games – the best ones. The most acclaimed games, the most celebrated games, the games people remember for years. The kind of games that make other people want to make games.
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Yes, I know, the whole, “no, starry-eyed indie developers, don’t sell out!” shtick is at least doubly hard to take seriously in response to the industry staring down a major downswing. But if you were going to wind up being a corporate drone anyways, why get into indie development in the first place?
Just be very careful what you agree to, and if nothing else, maybe try Kickstarter first.
So Im just writing this as a general answer to some comments below;
It looks like the prejucidal forthcommings about investors in general is wrong here.
Not all investors invest for control and profit. They invest in your unique ability to make the shit only you can. Also, lo and behold, not all investors are in it for cold hard calculated revenue. There ARE still mecenats out there who know how to strike a good balance between investment and excitement.
And to The Bottom Feeder; no you must not have forums and discords and whatnots. These will mostly draw energy from the most important thing that is working on your unique sauce.
If you feel like you must have this kind of social pressence then hire someone to do it. If you cant pay for it then do yourself a favor and STAY AWAY. Mental hygiene is almost number one for artists who want to maintain stability in their output.
Thanks for a great blog tho. I dont agree with mebbe 30% of the stuff you talk about, and Im honestly a little worried that you are becomming jaded from overexposure in the industry (no hard feelings!), but hey, I love reading your thoughts and please do your thing that I dont always agree with because we dont need echo chambers!