TAKEAWAYS & GAME BUSINESS GEMS
From GB Next Panel: Thriving in the Storm: Sustainable Game Businesses Strategies for Turbulent Times
1. Build a Business, then a Game
Treat your studio like a business from day one – maintain cashflow, budget wisely, and ensure you can survive downturns before pursuing grand creative visions. Profitability can fuel creativity.
2. The “Ambitious Era” is Over
Be Lean and Focused: In today’s market, it’s better to start small, scope tightly, and validate ideas early. Avoid the trap of overspending on an unproven concept. You can always scale up success, but it’s hard to downsize a runaway project.
3. Multiple Shots on Goal
Don’t bet everything on one game. Past data shows most first-time games make modest revenue (average ~$120k for a debut indie title) while studios often find more success by their second or third project. Plan for a slate of attempts – each one is a learning step toward a hit.
4. Know Your Audience Intimately
Understanding your players is everything. Research their preferences, hang out where they hang out (Discord, Reddit, etc.), and let that knowledge guide both design and marketing. A game for “everyone” is a game for no one. A game tailored to a specific audience can build a passionate fanbase that sustains you.
5. Market Early and Authentically
Don’t wait until launch to think about marketing. Start building community and hype during development. How you articulate your product in messaging matters – communicate the fantasy and value of your game in a way that resonates with your target players. Early community engagement can create evangelists who amplify your reach.
6. Grow a Garden of Players
Think of your player community as a garden to nurture, not a crop to harvest. Players are your seedlings – nurture them, feed them, and they will create loyalty. Focus on player relationships: respond to feedback, reward their support, and treat their time and money with respect. Loyal players will stick with you and spread the word, giving you stability beyond one game.
7. Don’t Believe the Hype - Evaluate Critically
Be wary of chasing every trend. Distinguish between real opportunities vs. hype cycles. Ask if a direction or trend truly fits your audience and capabilities. Some trends will pan out, others will fizzle. Use data and gut feeling (and advisor input) to differentiate between the two.
8. 100% of 5 < 50% of 100
Consider strategic partnerships (publishers, platforms, etc.) that can vastly increase your reach, even if it means giving up a share. Owning a smaller piece of a much bigger pie beats owning every piece of a tiny pie. Many indie studios find that partnering for marketing/distribution muscle yields far greater total success. In other words, don’t let the fear of revenue-sharing prevent you from making your game a blockbuster.
9. Published Games Often Outperform Self-Published
Data shows that games with publishers earned 5X higher median revenue than self-published titles on Steam. A good publishing partner or platform deal can bring expertise and exposure that translate to a financial win-win. Choose partners carefully, but don’t assume going solo is always best for sustainability.
10. Ask for Help Early and Often
Veteran advisors and mentors are more accessible than ever – and they can save your studio. Don’t wait until you’re in crisis to seek help. Reach out to experienced folks in areas you lack (business, marketing, tech, etc.) and do so early. A mentor’s guidance on avoiding a bad deal or a design pitfall can be literally game saving. Pride or isolation can sink you; a little humility to ask for advice can propel you.
11. Control Burn Rate Like Your Life Depends On It
Keep your burn rate low and efficient. Use contractors and remote talent to flex up/down as needed rather than carrying a huge full-time team. Track expenses constantly and have a clear runway. If you have investment, pretend you have half – it forces discipline. The studios that survive downturns are the ones who always know their financial status and never spend frivolously.
12. Hire Slowly, Fire Rarely
Don’t hire a full-time team member until it really hurts not to have them. This ensures every hire is essential and sustainable. Each new hire permanently raises your burn rate, so consider alternatives (outsourcing, short-term contracts, tools) first. Conversely, when you do hire, pick people who believe in your vision and fit your culture – they’ll stick around, reducing costly turnover.
13. Scope Small, Execute Big
Mitigate production risk by nailing a small scope and delivering it exceptionally, rather than trying to do everything and doing it poorly. It’s better to launch a polished game with 10 hours of great content than an unpolished one with 50 hours. You can expand with updates or sequels once you have success (and revenue). Small scope = fewer things to break = lower risk of delays and budget overruns.
14. Be Ready to Pivot or Cut
If something’s not working – be it a game feature, a project, or a strategy – have the courage to pivot or kill it early. Sunk cost fallacy ruins many studios. Set go/no-go milestones in development; if you haven’t hit fun or a key metric by that point, regroup and change course. It’s far better to redirect early than to finish a project that flops. Studios that iterate and pivot survive longer in a fast-changing market.
15. Leverage Technology...Wisely
Embrace tools and tech that truly boost productivity or quality (project management software, proven engines, automation in testing, etc.), but beware shiny new tech that might derail you. Try them on a small scale, evaluate results, and scale up use only if it’s beneficial. Technology should serve your game, not define it.
16. Keep Culture & Vision at the Core
Through all the cost-cutting and pragmatism, remember what makes your team and game special. Don’t compromise on core values or the creative “heart” of your project. A strong, clear company culture can be a competitive advantage – it helps attract talent and community who resonate with you. Plus, a happy, motivated team is far more productive (and likely to stick with you in rough times) than one that feels like just a budget line item. Lead with humanity, while balancing frugality.
17. The Gaming Market is Huge but Hit-Driven – Plan Accordingly
Over 3.3 billion people play games today but reaching them is the challenge. Success is extremely skewed towards top titles (~85% of revenue going to 10% of games). This means two things: (1) Don’t assume you’ll be a top 10% hit – have a Plan B for sustainability if you only achieve moderate sales. (2) When you do find something that works, double down and support it – nurture your hit into a franchise or community because hits are precious.
18. Hard Times are Cyclical – Stay Resilient
The current funding and economic climate is tough. But remember: the game industry has overcome slumps before. Use downturns to refocus on efficiency and innovation. Often, constraints breed creativity – some of the most innovative games are born in lean times. If you manage risk and finances well, you can outlast the storm. And when the market swings up again, you’ll be in a prime position to capitalize.