Archive for March, 2008

Is it possible to earn a living making Indie or Casual games?

Thursday, March 27th, 2008

OK, so you want to make Indie/Casual games and sell enough of them direct or via the portals to make a living – is it possible?

Well here’s my opinion (based on 3+ years in the industry, my own experiences of making and selling 5 games, talking to other established indie developers, facts and figures I’ve read and digested, and having some inside info about some of the big portals):

– Let’s say you spend 6 months designing/programming a game (working 7-8 hours a day). What do you feel is a reasonable salary for that? Let’s pick a number and say $5000 per month. So you need to get paid $30,000. Sure living costs are HIGHER in some places and way LESS in others, so adjust the figure according to what’s right for you.

– OK, if you ever plan to earn that much from your game, I hope you damn well paid for the graphics and music (or got someone on a good royalty deal). But for ease of calculations, let’s say that the art cost $15,000 and the music cost $5000 (total = $20000). If you can get it made for less, then good for you, but make sure it’s top notch quality or your game doesn’t stand a chance.

– So the total you are aiming to earn is $50,000.

– If you sell direct (on your own site) you’ll get about 90% of the gross revenue, so if you sell for $20 you’ll make $18 per sale.

– So you need to make 2777 direct sales to make $50,000.

– OR if you sell via portals, you’ll get MAX 40% of the net price (net is gross minus some minor transaction fees). So like $8 max per game. Therefore you need 6250 sales. However, many portals offer discounts on their games, and many don’t offer 40%, so you may have to make as many as DOUBLE or TRIPLE that number depending on which portals you use (frankly you should use all the big ones (because it’s all money) and consider if the smaller ones are worth the paperwork (some aren’t)).

– However, to get those sales you’ll need to do a heck of a lot of marketing. Some marketing is free, and some costs money (like shareware submissions, advertising, paid for press-releases etc). So there could be a big cost in marketing. Oh and you need a website of course, which you can either make yourself of hire out the work for a couple of thousand dollars (assuming it’s half decent).

– Who’s going to do all that marketing? Well if you don’t hire a publisher, *you* are – and that may add easily a month onto your game development time (in fact it should be an ongoing process), so you need to earn another $5000 + marketing/website expenses. Of course if you hire a publisher, they’ll take a big % of the profit but hopefully will generate way more sales that you ever could (otherwise there would be no point, it’s the same with advertising)

– OK then, which do you think is easiest? Making 2770 direct sales or 6250 to 18000 portal sales? (or some combination of both). The answer is neither.

– Making 2770 direct sales is a major challenge. People have been known to do it but they have normally made several games before and have built up a fan-base and then they release their next game on their site ONLY for a few months before putting it on the portals. An example of such a developer is Positech and their specialist games like democracy. I happen to know that their direct sales are GREAT. But they’ve worked hard at building the customer base for YEARS (and they uses portals too).

– How about making say 10,000 sales on a portal? Well that is also extremely hard. You are competing against many other highly polished games (probably all Hidden Object games right now). If you game doesn’t reach the top 10 on at least a few portals, you’ll never make that many sales. Also if you do reach the top 10, there is a hell of a lot of difference between no.1 and no.10, the curve is seriously exponential. Then there’s how long you stay in the top 10, and after the top 10, how long you stay in the top 100. Games that hit no.1 will make 10,000 sales EASY btw. But how many games never even get in the top 10? … To be a top 10 hit, your game needs a proven mechanic (or a unique one which takes the market by storm – but how easy do you think that is?), addictive gameplay, a popular or original theme, bucket loads of polish, meta-games and mini-games etc. and then there is still no guarantee of success.

– One good thing about games is that they can have a long shelf life. We all know that you get a huge spike of sales when the game is first released on a portal (or when your initial batch of marketing for your website kicks off), and then it rapidly tails off. However, hopefully you’ll get a steady number of sales for a couple of years at least. You may not in fact make your $50000 until the second year after the game’s release! You need to factor this in when making a game i.e. you will not receive the money straight away, it may take a long time to recoup the money. The good thing is that once the $50000 is made, any extra sales are pure bonus!

The good old days

Making Indie/casual games may have been easier in the past because a) there was less competition b) games didn’t need as much content (meta games, unlockables, graphics etc) and c) games didn’t need as much polish. So it was possible to make a game in 3 months with a very low art/music budget. However, those days are GONE. Why? Because everyone jumped on the band wagon and upped the ante! Development times are longer due increased content and polish and art and sound budgets are much higher. It’s a fast moving business and to stay afloat you have to move with the times or get left behind. Having said that, in the past there was less awareness of downloadable games and there was less marketing done on them so it may have *still* been hard to earn a living from it. It took Steve Pavlina 5 years before he finally made a profit – then he quit and became a self help guru 🙂

What if you are starting today?

So what if you are just starting now? Is it possible to make living? Well have you practiced making really good free games first? Small ones that you can FINISH easily. These are “portfolio” items that you can use to get other parties interested, either to help you make the art and sound or to hire you to make a game for them. If you’ve never made a game before and you try to get some other team members on-board for royalties only (instead of paying them) then you’ll have a very hard time or you’ll most likely get sub-standard team members.

Another option exists – get a LOAN and INVEST some money in art and sound and make a quality game that has a chance of succeeding. You may LOSE some or all of the money, but you have to make mistakes to learn. Most millionaires claim they have made *way* more mistakes than most people because they kept on trying until they got it right. I invested money that I didn’t have in my Holiday Bonus game and made it back 5 times over (so far, the figure grows every day) – but it took nearly a year to make back the initial investment.

This is a long term game, there’s no get rich quick. It’s about building skills, contacts and a career in making games.

Are you committed?

So if all that sounds like hard work, you are correct, it is! Any many will not succeed. But if you don’t try, your chance of success is 0%.

I’m a black belt in Aikido and I’m going for my 2nd dan this year. Have you ever wondered what % of people who start a martial art get to black belt? Do you know what?…

It doesn’t matter, because if YOU want to be a black belt and you go for it, the chance of you getting one is 100%, whereas if you give in, the chance is 0% – it’s that simple folks! (Thanks to Steve Pavlina for the inspiration on that one).

One more thing…

As Columbo always says “just one more thing”… Notice that the title of this post is “making games”, not “selling games”. By making games I mean programming/designing and then selling. You could of course try to make money from Indie/Casual games by just selling other people’s games by starting up a portal, or becoming a publisher, or by joining an affiliate program. All of those are valid options, and done right could be big money too. But it’s a whole different topic that I’m less experienced in, so I’ll have to save that for another day…

Woo! Finally got a Wii.

Thursday, March 27th, 2008

My eldest son was 7 today and he got a Nintendo Wii for his birthday. I actually bought it about a month ago because I saw it in stock in the local Blockbuster and they only had one. It’s been hidden all this time. It came with Wii Sports but we also bought him Mario Galaxy which should be great fun.

It’s my first next-gen console; I don’t own an XBox 360 or PS3 (yet). This is simply because there are so many great games still to play on PS2 and Gamecube (and PC), plus I don’t get enough time to play games anyway. However, a friend of mine called Will said “Come on Jake, you’re a game developer, you’ve got to stay abreast of games market and get a next-gen console” (or something like that). And that was all the convincing I took 😉 Thanks Will!

The good thing about being a game developer is that I can put all games and game related hardware through my company as an R&D expense and claim back the VAT and also pay less tax at the end of the year which means that I end up paying about 66% the real cost (e.g. £100 retail minus 17.5% VAT = £85.11, then subtract about 20% saved on year end tax bill = £68.09).

OK next up, a visit to GameSpot to build a wish list of top-rated Wii games…

250,000 hits

Tuesday, March 25th, 2008

This site has now had 250,000 over the last 2 years or so. That’s a really small amount of hits compared to some sites that get way more than that in a single day, but I’m proud of that number 🙂 I track “old-skool” hits, not unique visitors or any of that fancy stuff, and probably a few thousand of the hits are mine from testing out site changes!

I basically don’t do any marketing for this site except for having a link to it in my form signatures and relying on google. There are a few links to it from other sites, but nothing special. I make some money from Adsense, but nothing to write home about, and I make more from affiliate games sales and direct sales of my own games. I could market the site a lot more and probably make some reasonable money from it, but my main job is writing games and the site is just a “web-presence”, as you hear people say. If I was to spend more time on my site, my game programming would suffer so I stick to what I’m best at for now. Actually, ideally I’d love to delegate the running of the site to someone who can really turn it into something good…