Independent Games In The West: Market Trends Simon Carless [IGF Chairman, Game Developer magazine/Gamasutra publisher.] GDC China [email_address]

Why Now? The rise of indie games driven by: Massive growth of digital distribution on PC/console and iPhone. Increased importance of Web and direct contact with consumer. Alternative business models (e.g. microtransactions) Innovative and different shorter-form games with different ‘style’.

The rise of indie games driven by:

Massive growth of digital distribution on PC/console and iPhone.

Increased importance of Web and direct contact with consumer.

Alternative business models (e.g. microtransactions)

Innovative and different shorter-form games with different ‘style’.

How Do Gamers Get Indie Titles? In the West, independent games are consumed via: Console digital download ( Xbox Live Arcade, PSN, WiiWare - $5 to $20 one-time payments.) PC downloadable singleplayer (via own website, ‘portals’ like Steam, Direct2Drive, etc - $5 to $30 one-time.) PC web-based single-player (own site, ‘portals’ like Kongregate, NewGrounds - ad revenue or ‘sponsorships’, now microtransactions of $1-$10.)

In the West, independent games are consumed via:

Console digital download ( Xbox Live Arcade, PSN, WiiWare - $5 to $20 one-time payments.)

PC downloadable singleplayer (via own website, ‘portals’ like Steam, Direct2Drive, etc - $5 to $30 one-time.)

PC web-based single-player (own site, ‘portals’ like Kongregate, NewGrounds - ad revenue or ‘sponsorships’, now microtransactions of $1-$10.)

How Do Gamers Get Indie Titles? (Pt.2!) Other major distribution methods: *PC web-based/downloadable multiplayer (own website, FilePlanet, online stores - microtransactions of $1-$5 or subscriptions of $5-$10 monthly.) iPhone (via Apple, $1-$10 one-time, microtransactions soon.) *Social networks (via Facebook, MySpace - microtransactions of $1-$5) *Indie definition hazy.

Other major distribution methods:

*PC web-based/downloadable multiplayer (own website, FilePlanet, online stores - microtransactions of $1-$5 or subscriptions of $5-$10 monthly.)

iPhone (via Apple, $1-$10 one-time, microtransactions soon.)

*Social networks (via Facebook, MySpace - microtransactions of $1-$5)

*Indie definition hazy.

Notable Western Independent Game Trends - PC Rise of smaller-team indie PC games - retail /publisher slowdown, growth of digital (Steam) Use of pre-orders to fund full game development (Cortex Command) Growth of influential, ‘trendy’ indie game-friendly press (RockPaperShotgun, Offworld). Acceptance of ‘play’-based games with a less clear goal (Blueberry Garden, Line Rider) PC online indies breaking Flash, online microtransaction cultural taboos (Puzzle Pirates) Rapid prototyping allows freeware PC hits to become full games (Crayon Physics, Audiosurf) Understanding of ‘virality’ as game design key leads to Facebook game growth (FarmTown, others.)

Rise of smaller-team indie PC games - retail /publisher slowdown, growth of digital (Steam)

Use of pre-orders to fund full game development (Cortex Command)

Growth of influential, ‘trendy’ indie game-friendly press (RockPaperShotgun, Offworld).

Acceptance of ‘play’-based games with a less clear goal (Blueberry Garden, Line Rider)

PC online indies breaking Flash, online microtransaction cultural taboos (Puzzle Pirates)

Rapid prototyping allows freeware PC hits to become full games (Crayon Physics, Audiosurf)

Understanding of ‘virality’ as game design key leads to Facebook game growth (FarmTown, others.)

Notable Western Independent Game Trends - Console/Handheld Innovative small-team titles can beat more ‘calculated’ games on XBLA, PSN, WiiWare. Risk/reward per system proportional to a) entry barriers b) natural ‘connectedness’ of console Median revenue for published titles: XBLA > PSN > WiiWare > PSP Minis > DSiWare > iPhone > Xbox Live Indie Games BUT revenue curve massively different for each. iPhone is gigantic, messy ‘gold rush’. Biggest console (XBLA, PSN, WiiWare) mistake: team overstaffing (3-5 people, not 10-15!) Bet-hedging across console and PC SKUs ideal.

Innovative small-team titles can beat more ‘calculated’ games on XBLA, PSN, WiiWare.

Risk/reward per system proportional to a) entry barriers b) natural ‘connectedness’ of console

Median revenue for published titles: XBLA > PSN > WiiWare > PSP Minis > DSiWare > iPhone > Xbox Live Indie Games

BUT revenue curve massively different for each.

iPhone is gigantic, messy ‘gold rush’.

Biggest console (XBLA, PSN, WiiWare) mistake: team overstaffing (3-5 people, not 10-15!)

Bet-hedging across console and PC SKUs ideal.

The ‘Rules’* For Digital Game Distribution Success Who are you?

Who are you?

The ‘Rules’* For Digital Game Distribution Success Define Your Developer Company name: pronounceable, adaptable. (Infinite Ammo, Halfbrick) What are you ‘known’ for? (Spiderweb. Q Games) What is your easily definable ‘story’? (2D Boy, Introversion) Have a mission statement. Who is your spokesperson/’personality’ ? (Paul Wedgwood/Splash Damage, Brad Wardell/Stardock) Why should the press or public care? (See above.)

Define Your Developer

Company name: pronounceable, adaptable. (Infinite Ammo, Halfbrick)

What are you ‘known’ for? (Spiderweb. Q Games)

What is your easily definable ‘story’? (2D Boy, Introversion)

Have a mission statement.

Who is your spokesperson/’personality’ ? (Paul Wedgwood/Splash Damage, Brad Wardell/Stardock)

Why should the press or public care? (See above.)

The ‘Rules’* For Digital Game Distribution Success How do your ‘fans’ find you?

How do your ‘fans’ find you?

The ‘Rules’* For Digital Game Distribution Success 2. Make yourself community-friendly - Never too early to make official company website. (Hello Games) - Get an official blog, RSS, forum. - Post company-specific news _and_ editorials/thinkpieces (Tale Of Tales, Denki) - Get active with Twitter/Facebook, inc. giveaways & interaction (James Silva, Wolfire) - Publish video to YouTube, GameTrailers, etc (Crayon Physics) - Much more legitimacy when you do this yourself - or use a community member.

2. Make yourself community-friendly

- Never too early to make official company website. (Hello Games)

- Get an official blog, RSS, forum.

- Post company-specific news _and_ editorials/thinkpieces (Tale Of Tales, Denki)

- Get active with Twitter/Facebook, inc. giveaways & interaction (James Silva, Wolfire)

- Publish video to YouTube, GameTrailers, etc (Crayon Physics)

- Much more legitimacy when you do this yourself - or use a community member.

The ‘Rules’* For Digital Game Distribution Success Who have you reached out to?

Who have you reached out to?

The ‘Rules’* For Digital Game Distribution Success 3 . Use Other Sites, Events To Build Popularity - Read the major websites, blogs, magazines and understand the ecosystem. - Make press/news releases (GamesPress, on your own site) - Identify indie-friendly ‘influencer’ outlets and target them. (RockPaperShotgun, Offworld, IndieGames, Penny Arcade, bigger sites) - Research and pitch personally and directly in key cases (Hello Games) - Understand how novelty/unique stories & content gets viral (Denki's Scrabble sponsorship!) - Enter _all_ festivals, showcases and use them to your advantage (IGF, Indiecade, Eurogamer Expo, etc)

3 . Use Other Sites, Events To Build Popularity

- Read the major websites, blogs, magazines and understand the ecosystem.

- Make press/news releases (GamesPress, on your own site)

- Identify indie-friendly ‘influencer’ outlets and target them. (RockPaperShotgun, Offworld, IndieGames, Penny Arcade, bigger sites)

- Research and pitch personally and directly in key cases (Hello Games)

- Understand how novelty/unique stories & content gets viral (Denki's Scrabble sponsorship!)

- Enter _all_ festivals, showcases and use them to your advantage (IGF, Indiecade, Eurogamer Expo, etc)

The ‘Rules’* For Digital Game Distribution Success Who are your peers?

Who are your peers?

The ‘Rules’* For Digital Game Distribution Success 4. Become Part Of The Game Community - Get on forums and mailing lists and have fun, learn stuff (TIGSource, IndieGamer, mailing lists) - Give back - share indie-friendly information, tips, user data on your blog/elsewhere (Gamasutra Blogs?) - Use your relationships to cross-promote each other's games (Captain Forever, Wolfire) - Feed the local and national digital download/indie game community (local meetings/events, speaking at GDC, exhibit at PAX, etcetera) - Make fun custom games for online mini-competitions, build a reputation (Ludum Dare, Global Game Jam, TIGSource competitions)

4. Become Part Of The Game Community

- Get on forums and mailing lists and have fun, learn stuff (TIGSource, IndieGamer, mailing lists)

- Give back - share indie-friendly information, tips, user data on your blog/elsewhere (Gamasutra Blogs?)

- Use your relationships to cross-promote each other's games (Captain Forever, Wolfire)

- Feed the local and national digital download/indie game community (local meetings/events, speaking at GDC, exhibit at PAX, etcetera)

- Make fun custom games for online mini-competitions, build a reputation (Ludum Dare, Global Game Jam, TIGSource competitions)

The ‘Rules’* For Digital Game Distribution Success Where’s your cash coming from?

Where’s your cash coming from?

The ‘Rules’* For Digital Game Distribution Success 5. Get Your Funding/Publishing Right - Self-funding gives you CONTROL, consider pre-orders 'hidden weapon' (Captain Forever, Cortex Command). - Look at local, national government grants & loans (N+, DeathSpank, Fez) - 'Total' publisher deals on console/PC/iPhone mitigate risk, harder to reap the upside (Blitz's games vs. A Kingdom For Keflings) - Direct 'publishing' deals for consoles optimum - but watch selective gatekeepers and hidden costs. (Localization, ESRB, testing, regional submissions.) - Regional PC publisher deals can give you ready cash, can be dangerous tactically (2D Boy) - Digital distribution deals on PC - no downside except contract time.

5. Get Your Funding/Publishing Right

- Self-funding gives you CONTROL, consider pre-orders 'hidden weapon' (Captain Forever, Cortex Command).

- Look at local, national government grants & loans (N+, DeathSpank, Fez)

- 'Total' publisher deals on console/PC/iPhone mitigate risk, harder to reap the upside (Blitz's games vs. A Kingdom For Keflings)

- Direct 'publishing' deals for consoles optimum - but watch selective gatekeepers and hidden costs. (Localization, ESRB, testing, regional submissions.)

- Regional PC publisher deals can give you ready cash, can be dangerous tactically (2D Boy)

- Digital distribution deals on PC - no downside except contract time.

The ‘Rules’* For Digital Game Distribution Success How can you balance your company’s needs?

How can you balance your company’s needs?

The ‘Rules’* For Digital Game Distribution Success 6. Understand Where Design And Business Interact - For project scope estimates, add a LOT of polishing time (2D Boy) - Don't put all your eggs in one basket, SKU-wise (2D Boy) - Try to design for multiple formats or produce multiple games swiftly. (And Yet It Moves, Firemint.) - Consider design virality as a game marketing/business mechanic (Fantastic Contraption, most Facebook games.) - Look at building publisher relationships, trust, to get consulting work to help fund indie work (NinjaBee!) - BUT understand which sets of platforms don't go together well. (Console and iPhone? Console and Facebook?) - Don't forget Mac (Aquaria) and Linux? (2D Boy) versions. - If you want to make the game you want to make (good!), still look at competitors, genre popularities, etc.

6. Understand Where Design And Business Interact

- For project scope estimates, add a LOT of polishing time (2D Boy)

- Don't put all your eggs in one basket, SKU-wise (2D Boy)

- Try to design for multiple formats or produce multiple games swiftly. (And Yet It Moves, Firemint.)

- Consider design virality as a game marketing/business mechanic (Fantastic Contraption, most Facebook games.)

- Look at building publisher relationships, trust, to get consulting work to help fund indie work (NinjaBee!)

- BUT understand which sets of platforms don't go together well. (Console and iPhone? Console and Facebook?)

- Don't forget Mac (Aquaria) and Linux? (2D Boy) versions.

- If you want to make the game you want to make (good!), still look at competitors, genre popularities, etc.

The Eight ‘Rules’* For Digital Game Distribution Success 7. Plan for release and post-release carefully. Make a demo: very rare that releasing one is negative (iPhone games? Q Games theories.) Think about amount of demo to give away (Context, difficulty - Dead Space.) Co-ordinate your worldwide release simultaneously (Space Tripper, World Of Goo). Use your fans for localization? (Wolfire, 2D Boy) Have your own support infrastructure if selling on your own site (automated systems, refunds, direct payments, free copies) DLC helps with publicity, if not big profit - watch ‘why not free?’ complaints (The Maw)

7. Plan for release and post-release carefully.

Make a demo: very rare that releasing one is negative (iPhone games? Q Games theories.)

Think about amount of demo to give away (Context, difficulty - Dead Space.)

Co-ordinate your worldwide release simultaneously (Space Tripper, World Of Goo).

Use your fans for localization? (Wolfire, 2D Boy)

Have your own support infrastructure if selling on your own site (automated systems, refunds, direct payments, free copies)

DLC helps with publicity, if not big profit - watch ‘why not free?’ complaints (The Maw)

What Is Indie? Some possible answers: Small group of creators making the game they really want to make - INTENTIONALITY . Bringing back old genres (2D, platform, puzzle, action games) with new innovative twist (physics, time manipulation, procedural generation). Growing massively and IPO-ing is NOT the main goal. Concentration on how games make you feel (Passage, Flower) or subverting the medium (You Have To Burn The Rope, The Graveyard). OK to make games for free or without initial business models. (Spelunky). Upfront about being indie, needing support (Fantastic Contraption).

Some possible answers:

Small group of creators making the game they really want to make - INTENTIONALITY .

Bringing back old genres (2D, platform, puzzle, action games) with new innovative twist (physics, time manipulation, procedural generation).

Growing massively and IPO-ing is NOT the main goal.

Concentration on how games make you feel (Passage, Flower) or subverting the medium (You Have To Burn The Rope, The Graveyard).

OK to make games for free or without initial business models. (Spelunky).

Upfront about being indie, needing support (Fantastic Contraption).

What Is Indie? Independent Games Festival’s definition of independent games? We ask ‘Are you really indie?’ If you agree, you can enter.

Independent Games Festival’s definition of independent games?

We ask ‘Are you really indie?’

If you agree, you can enter.

Conclusion Independent games are growing because they: Are bite-sized for today’s busy Western gamer. Look ‘different’ and provide quirky, lower-cost alternatives to AAA $60 titles. Provide clever gameplay and conceptual twists on familiar game genres. Are easy, fun, and thought-provoking to play. Feel like they have been produced by people, not teams. Questions?

Independent games are growing because they:

Are bite-sized for today’s busy Western gamer.

Look ‘different’ and provide quirky, lower-cost alternatives to AAA $60 titles.

Provide clever gameplay and conceptual twists on familiar game genres.

Are easy, fun, and thought-provoking to play.

Feel like they have been produced by people, not teams.

Questions?