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Indie Game Developers See Big Opportunity

An anonymous reader writes "BusinessWeek Online is running a story on the new opportunities indie game developers are finding in the casual games space. They also have a Q&A with one of Microsoft's gaming gurus." From the article: "Until recently, the market for electronic games was mainly young, male, and diehard. These days, a bigger, more age-diverse group that increasingly includes and women is joining in the fun, spending anywhere from a few minutes a day to long stretches on online poker or games such as Bejewelled, Tetris, and The Sims. As more people sign up for high-speed Internet access (almost 60% of the U.S. population now has access to broadband), the gaming experience -- both for games playable online, such as Bejewelled, and CD- or DVD-ROM titles with an online component, like The Sims -- has become more appealing. Casual gamers now make up about 1% of the $20.5 billion game-software market."

39 of 119 comments (clear)

  1. Of course by Red+Flayer · · Score: 4, Insightful

    Take any retail industry. Make distribution costs sufficiently close to zero. Make unit cost close to zero.

    Independent producers will grow like weeds. Add in the fact that the casual gamer market was underutilized... Profit!

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    1. Re:Of course by Dachannien · · Score: 2, Funny

      Make distribution costs sufficiently close to zero. Make unit cost close to zero. Independent producers will grow like weeds.

      Given your description, I think you meant, "Independent producers will grow, like, weed."

  2. So nothing's changed then? by Buddy_DoQ · · Score: 4, Insightful
    What they're trying to say is, that nothing has changed since the days of Tertris.


    Boys are still the big buyers and mom sometimes likes Tertis-like games. Making more Tertis-like games may bring in more money, but I don't think it'll be as big as they think. (But I've been wrong before, and as an indie type my self, I'd love to be!)

    --
    -Buddy of DoQ
    1. Re:So nothing's changed then? by Xarius · · Score: 5, Funny

      How can someone spell Tetris wrong three times in a row?!

      --
      C17H21NO4
    2. Re:So nothing's changed then? by garcia · · Score: 3, Interesting

      Boys are still the big buyers and mom sometimes likes Tertis-like games. Making more Tertis-like games may bring in more money, but I don't think it'll be as big as they think. (But I've been wrong before, and as an indie type my self, I'd love to be!)

      I enjoy puzzle games like Tetris and specifically "Bejeweled" (or any of the 1000 other names it goes by depending on variation) but that's because they are "free". I can go to Yahoo Games and fire up a game of Gin, Literati, Bejeweled, etc, all for nothing. I don't need a game to sit on my HD taking up space, I don't need the latest and greatest system to run it, I don't need to pay an arm and a leg, and I don't get bored with the game after I "finish" it.

      My problem with most modern games is that the long term playability just isn't there. Yeah, most FPS shooters with online play break that mold but there are plenty of others that don't. You need to invest too much in hardware, software, and time and then you're bored with it in a month/year.

      I have a Ms. Pacman machine (currently in disrepair unfortunately). It's been out since 1982 and it's just as much fun today as it was then.

      I'll take a puzzle game over some multi-million dollar interactive movie anyday.

    3. Re:So nothing's changed then? by mopslik · · Score: 3, Funny

      How can someone spell Tetris wrong three times in a row?

      I don't know, but I suspect that had it been spelled incorrectly a fourth time, there would have been some bonus points awarded.

    4. Re:So nothing's changed then? by Red+Flayer · · Score: 2, Funny

      "I have a Ms. Pacman machine (currently in disrepair unfortunately). It's been out since 1982 and it's just as much fun today as it was then."

      If it's in disrepair now, and was 'out' in 1982, of course it's the same amount of fun -- it doesn't work now and it didn't work then!

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    5. Re:So nothing's changed then? by Lerc · · Score: 2, Interesting

      Puzzle games seems to be a bit of a misnomer in the casual arena. The puzzles are often at the stimulus/response level of Bejeweled and its kin.

      I got it wrong and made Drippy which is more in the Tetris vein. If you look at most of the Casual game portals you won't find many games like this. There is too much decision making involved in where to put things.

      With my other games Fitznik and Fitznik 2 I made really hard puzzles.
      They also don't do so well on the casual portals. For Fitznik, by far the bigggest feedback I have received is that people haven't been able to complete the free demo levels.

      I think there is a niche out there for my games, but it's a tough job getting the games in front of the people who will enjoy them.

      --
      -- That which does not kill us has made its last mistake.
  3. Only 1%.... by wpiman · · Score: 3, Insightful
    that seems low to me.

    I would probably catorgorize myself as a casual gamer- I play once a week- often not at all- but I'd say I buy 5-6 games a year. I'd like to play more- but don't have time. Is this just me or are others in this same category?

  4. Negative Effects? by matr0x_x · · Score: 3, Interesting

    I am not convinced that games going mainstream is necessarily a good thing! As more and more average Americans start playing video games in their spare time, the lucrative market video game creators will target will also change. Pretty soon games like Halo will be on the back burner to "every day games" free of killing and other evils. Could this mean a world full of The Sims knockoffs?

    --
    LINUX ONLINE POKER: Linux Poker
    1. Re:Negative Effects? by confusednoise · · Score: 4, Insightful
      Wrong wrong wrong. If it becomes easier/lower cost to create and distribute games, variety will increase are more niche markets are able to be filled. Game makers no longer have to bet on the biggest market out there - indie makers can find a small audience for their game and make enough to get by. All this means *more* different kinds of games, not less.

      Now: s/games/[books|music|any content you want]/ and think over the benefits of indie producers again.

    2. Re:Negative Effects? by freeweed · · Score: 2, Insightful

      I'm pretty sure games like Halo are a direct result of games going mainstream already.

      --
      Endless arguments over trivial contradictions in books written by ignorant savages to explain thunder in the dark.
  5. When can I get Death Cab (PC) preload from Steam? by christian.elliott · · Score: 3, Funny

    Here we go, I can see it now. Soon enough I'll have to wade through a sea of EMO kids trying to get my copy of HL3 or Doom 18, having my tastes in game critiqued and told how I should really be playing "Indie Games" because thats where the "real talent" is.

  6. I'm surprised by Conspiracy_Of_Doves · · Score: 3, Informative

    They didn't mention Manifesto Games, the new startup established by Greg Costikyan, author of the Scratchware Manifesto

    1. Re:I'm surprised by Toddarooski · · Score: 2, Informative

      As I recall, Manifesto games is intentionally avoiding going after the casual game market. They're looking for Indie Hardcore games. TFA seems to use "Indie" and "Causal" interchangably, which is true for a lot of the games out there right now, but not all of 'em...

      --

      "Do you expect me to talk?" "No, Mr. Bond. I expect you to die!"

  7. This is great! by Yhippa · · Score: 5, Insightful
    I've been waiting for things like this to really pick up. Most of the games I've played on the consoles or PC are incremental improvements over a previous version. I like the fact that the barrier for entry is lower so that people with different ideas get a shot at making some cool games.

    I think a lot of us remember the days of the Atari 2600 where there were few sequels and mostly different (and sometimes weird) ideas. I felt that way about games until they started to become really commercialized in the late 90's and all we get now are rehashes because the big businesses are not willing to take risks and want steady incomes. Maybe we'll see some new games now.

    1. Re:This is great! by Magnusite · · Score: 2, Insightful
      Bingo! You hit the nail on the head!

      The very reason that people did not create wave after wave of FPS games is that they were not technically possible on the Commodore 64, Apple II, or Atari 800. Sure, there were some wireframe simulations of FPS exploration like Cholo, The Colony and others, but they did not move fast enough to give the visceral feelings modern hardware can (Run! Shoot! Flee!), so they just did not appeal to the mass populace.

      Modern hardware now allows full First Person immersion, so why make anything else? Just as modern CG effects allow us to make grand space operas without plot, dialogue or interesting characters.

      Hopefully, we'll see the return of creativity that allowed games like M.U.L.E., Boulder Dash, and The Bilestoad to be produced. You build it, they'll help you market it. Like EA in the early days.

      Gotta go now, and get started on my overhead scrolling adventure...

  8. The headline.. like a tragedy by jkind · · Score: 2, Insightful

    I had hope until the last line of the headline.. 1% ???? How does a indie company / startup go into their local innovation funding office and pitch their great quirky game idea when they can only say "Games like this will be 3% maybe of the game market this year!"? btw when is it indie, and when do you use indy.. ??

    --
    ~jennifer.k~
    1. Re:The headline.. like a tragedy by glyph42 · · Score: 2, Interesting

      First, 1% of $20.5 billion is $205 million. But this only supports your point :) Second, revenues of $100,000 would earn major profit for you, for sure, but innovation funds only begin to get interested when there is "hockey stick growth" into the 7-digit or 8-digits numbers at the end of your 3-year business plan. Your measly 6-digit profit figures won't even get a sideways glance.

      --
      Music speeds up when you yawn, but does not change pitch.
    2. Re:The headline.. like a tragedy by TrentC · · Score: 2, Interesting

      Because 1% of $20.5 billion is still over $20 million. Given the low production and distribution costs of most of these small games, revenues of $100,000 would still earn major profit.

      I find it interesting that people think getting 1% of a $20 billion pie is worth the effort to develop games, yet when it's pointed out that non-Windows operating systems make up, say, 6%-10% of the user base for home PCs, the response is "you can't spend that much development time/money on such a small piece of the market, it doesn't make sense."

      I realize that we're comparing Mackintosh and Red Delicious here (hmm, didn't realize the irony in that statement until I typed it) -- that Small Garage Studio turning out a Bejeweled or Tetris-style puzzler isn't the same, technically or logistically, as porting Warhammer 40,000: Dawn of War to the Mac -- but it makes me think that there might be more to the anti-Mac and anti-Linux gaming crowd's viewpoint than mere "market forces".

      Jay (=

  9. Voice-recognition RPG by G4from128k · · Score: 5, Interesting
    Some cellphone service provider is going to make a killing on a voice-activated old-school RPG. The player speaks their commands ("move forward" "pick up crystal") and a pleasant synth or sampled voice tells the player what they see ("You are in a dark forest and the sun is setting. In front of you lies a shining sword and a bulging bag. A trail leads forward toward a crumbling castle").

    Just think of the minutes burned as the "caller" explores some world/dungeon for hours.

    --
    Two wrongs don't make a right, but three lefts do.
    1. Re:Voice-recognition RPG by Magnusite · · Score: 3, Funny
      Yeah, but what about when your playing the latest Mission:Impossible tie-in game?

      You: "Open the door."
      Phone: "The door opens. Stepping inside, you see a large water tank, possibly the cooling chamber for the reactor you were sent to destroy."
      You: "Place the plastic explosives on the nuclear reactor coolant controller."

      Whumpf! "Hey, what the heck? Who are you guys? Why did you tackle me? What's going on?
      Secret Police: "By authority of the Terrorist Wartime Powers Act, I'm taking you in! But before I start doing particularly nasty stuff to you, you'd better tell me: who were you talking to?!!

  10. Profits tend to zero by Anonymous Coward · · Score: 4, Informative

    Perfect competition: Characterized by a free flow of information, no barriers to entry, and a large number of buyers and sellers.

    Each seller supplies and each buyer purchases only a small fraction of the total supply of the commodity. As a result, no single seller or buyer can influence the market price. The sellers earn only normal profits (the minimum profit necessary to keep them in business). If sellers earn excess profits, other sellers will enter the market, boosting the supply and thus driving down the price of the commodity, until only normal profits are possible.

    Sounds like a real goldmine!

    1. Re:Profits tend to zero by Red+Flayer · · Score: 4, Insightful

      "Characterized by a free flow of information, no barriers to entry, and a large number of buyers and sellers."

      Except that there are barriers to entry (development costs -- like hiring a good designer & good developer). Still, much smaller barriers than in many other industries.

      Also, a perfectly competitive market assumes that all products are equivalent, which is not the case here. So, some developers will realize a hefty profit (due to a better product) and some will realize losses. In the long run, extrapolated across all competitors, you are correct... but there is still a huge capacity for profit due to differences in the product.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  11. Yawn by beakerMeep · · Score: 3, Insightful
    These articles are like "is apple dying?" articles. Need to run one of them every few months as per the publishers guidebook for easy stories. Not that this story is wrong but talking about games like Bejewelled-like as some sort of new market is silly.

    From the article, "Until recently, the market for electronic games was mainly young, male, and diehard."

    Not at all.

    Girls have outnumbered guys playing games for years and it's all games like this with companies capitalizing all along.

    For once i would like to see information on how this effects more traditionally "guy" games. For instance i bet the are significantly more girls playing WoW than ever played Ultima Online despite it still being vastly a male audience. Also would like to see how girls have influced the creation of more advanced games that cater to their gender more so than their male counterparts -- such as Black and White or The Sims.

    I'm not holding my breath though ;)

    --
    meep
  12. Several factors .... by AlltheCoolNamesGone · · Score: 5, Insightful

    as to why there seems to be more "casual" gamers.

    1. More homes have PCs now. Do you really think that people are not going to take advantage of all the features of a PC?

    2. There is little to no social stigma left to playing PC games.

    3. Lack of time in our daily lives. (When you grow up and have a family you cant spend 8 hours a day 7 days a week playing your favorite games)

    This shouldn't be surpriseing if anything the casual gamer market should continue growing.

    --
    M$ it's whats for diner!!!!!
  13. Distribution client? by No+Such+Agency · · Score: 3, Insightful

    "almost 60% of the U.S. population now has access to broadband"

    Does this mean that 60% of the population HAS broadband access in their homes? Or that they could have it installed if they want? I assume that it means the former, since almost everyone has cable TV by now and therefore likely access to cable internet.

    I wonder what the possibilities would be for starting a Steam-like service, but instead of peddling one's own games, instead distributing inexpensive indie games in exchange for a percentage? Would many casual gamers install a client like that?

    --
    Freedom: "I won't!"
  14. Re:The Sims not online by lividdr · · Score: 2, Informative

    You can share your homes/neighborhoods and any objects you might create.

    That's what I hear, anyway - it's not like I ever played the sims or anything ;)

    --
    Give a man a beer and he wastes an hour. Teach a man to brew and he wastes a lifetime.
  15. Re:The Sims not online by Mister+Skippy · · Score: 2, Informative

    It's not that The Sims has online play, it's that it has an online component: a huge amount of downloadable content.

    --
    ----- Oooh, Shiny!
  16. A great market by core · · Score: 2, Interesting

    Casual downloadable games are a great market indeed. My latest title, Atlantis, is #1 in sales on big portals right now (Real Arcade and BigFish Games at the moment), and direct sales, in number of units, are way into the 4-digits range after three months out. We get to make the games we like and have direct contact with customers to help them out and gather suggestions, which is fantastic.

    Best regards,
    Emmanuel

    --
    Smash hit ball matching game for PC and Mac:
    http://www.funpause.com/atlantis/
    Currently #1 on RealArcade and BigFish !

  17. Character actors, line up by ianscot · · Score: 4, Funny

    We need to audition for the definitive "You may be eaten by a Grue" voice.

    --
    "Fundamentalism" isn't about divine morality. It's about human authority.
  18. It's all about puzzle games by British · · Score: 2, Interesting

    I love GTA, etc, but I have a place in my heart for puzzle games. Gotta love 'em
    1. Low system requirements. You can port it to a freakin' Atari 2600 depending on the game, or a cell phone.
    2. Takes almost no time to learn.
    3. Often many puzzle games have open-ended design to expand gameplay without making hit hideously complicated.

    Every time I see one of those media players with a d-pad, I always wonder if it would be possible to port Tetris, Bejweled, etc on them. oh what fun it would be to port Bejeweled to as many portable systems as possible(cell phone(done), PSP, GBA, wonderswan, GP32, Tapwave Zodiac, Ipod(wow does it need more games), GP32X, digital cameras(mame was done) and anything else I haven't mentioned).

    Bejeweled for everyone!

  19. Problem with indi games dev by Anonymous Coward · · Score: 2, Insightful

    Having worked on 4 mods now, 2 halflife, 2 Unreal I can tell you why independent games development is not going to get any easier in the next few years. For starters costs, in sheer man hours work is vast, translate that into salaries and I will take a stab at saying games devs outspend filmakers. Unstable market and too much nanny legislation is going to scare most indis away from taking the risks. Making games is a very risky business, the best stuff is only made for people who do it for the love of it imho. The model is very much like the misic biz right now, a few lucky titles rake in all the profit after spending a fortune on hype and marketing while most of the real innovation out there gets swept aside because it is either too avant gard or trying to emulate the pedestrian success of whats already out there. Sure there is a huge _POTENTIAL_ market out there for us, but its not a market we have access to as small startup development teams. Also a fundamental technical/legal mistake is that games are like software was in the 60s. before anybody discovered standards and reuse. Every game reinvents the same basic objects, models, meshes and textures and few of these find their way into a public domain base of resources, thus every game is a dupe of 80% of the same work as the next game.

  20. Casual gaming is a crowded market by Junks+Jerzey · · Score: 2, Insightful

    Five years ago, this was big news. Very few companies were looking to the Solitaire / Minesweeper market. Some were, yes, and some of these were doing extremely well. Since then there has been a proliferation of casual game companies to the point where it's a difficult market to break into. A big reason for this is that the barriers for entry are low: games that involve fairly simple programming, aren't content heavy, aren't 3D, etc. You can toss together a Bewjeweled-like game in a week, plus spend another few weeks polishing it up. What's worse is that there's very little innovation of any kind. Everyone is cloning the same handful of games, usually bubble-popping games (like Bejeweled). And it's unclear that the casual market has any interest in innovation anyway. People want a mindless game like Solitaire or Bejeweled and that's that. They don't want an endless stream of games.

  21. 60% of Americans... by mpapet · · Score: 2, Insightful

    almost 60% of the U.S. population now has access to broadband

    Just because they have access doesn't mean they HAVE broadband, much less a computer. Please note a significant portion of American homes still do not have PC's. It really bugs me when stats are used in this way.

    At this point, it's kind of like the phone I'd guess in that its only a matter of time (non-computer users dying) before it gets much closer to the entire population.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
  22. Sortasoft by TheSifters · · Score: 3, Interesting

    I've recently entered into the casual games industry myself. There is definitely a market out there and I love working for myself and creating whatever I feel like creating. I have also found that the developer community is very helpful and willing to share their knowledge. If anyone wants to know more about just ask I'd love to share what i've learned.

    My first casual game Funky Farm has been doing better than I could ever have imagined, and I'm close to finishing my 2nd casual game. If you want to check out my site.... www.sortasoft.com

  23. One success story and a lot of unsupported figures by Rogerborg · · Score: 2

    Zounds! Is it time for the "Niche Industry X is resurgent!" filler story again? No real news going on, I take it.

    --
    If you were blocking sigs, you wouldn't have to read this.
  24. Lamer. by dermusikman · · Score: 2, Insightful

    Until recently, the market for electronic games was mainly young, male, and diehard.

    i call B.S. young, male, and diehard is where the big name publishers have been getting most of their profits, and therefore have been afraid to vary from the formula for so long. but i recall a WEALTH of great, accessible games to people of all ages and genders back in the 386 days and shortly thereafter.
    remember Myst? that game you never played because it didn't have action? the one that made more money and garnered more positive attention to the PC game market than anything else? everyone played it. throw in D, King's Quest, Sim City, really ANY sim or adventure title!
    and the big names raking in the big money these days, like the Sims, are those games that appeal to EVERYONE.

    this "new revolution" in games marketable to just about anyone is that universal market big publishers THREW ONTO THE CURB a few years back.

  25. Wildlife Tycoon by ajschatz · · Score: 3, Interesting

    Hi guys, this is Andy Schatz, the guy in the first sentence of the article. Just wanted to post here in the off chance that someone would be interested in my work or my perspective on indie games... The risk averse publishers in the big console-driven world are leaving many niches open for us indie types. Look at Wildlife Tycoon (www.wildlifetycoon.com). It's been a long time since someone came out with a compelling Tycoon game (unless you count Outpost Kaloki, which was great). I was able to design, engineer, and do the business for a game that will compete in a large market niche for minimal cost. The game was developed in 10 months (with 4 contract artists, 1 contract sound designer, and 1 contract writer, all part time) for 6000 dollars. This is partly because large corporations haven't upped the ante in this niche by innovating because they are scared to be spending big money on studios when they don't know the designs are going to be good. The DOWNLOADABLE tycoon market is almost entirely devoid of competition. My research has showed that the market buying retail Tycoon games is a very similar market to those buying casual downloadable games, but this area of the market hasn't been tapped yet. Oh, and the game is FREAKING COOL. Josiah Pisciotta, creater of Gish, has been hooked on it for the past 3 days, not getting his work done. That's my strategy, of course, to make games cool enough to make my competition stop working. Hey, it worked for World of Warcraft...