The video game industry is facing significant challenges in 2024, with widespread layoffs, studio closures, and a slowdown in investment following the Covid pandemic gaming boom. Indie developers are particularly struggling to navigate a competitive and unpredictable market.
The UK’s Digital Entertainment and Retail Association reported a sharp drop in game sales compared to the previous year. Smaller studios are finding it increasingly difficult to attract players, with established online games and annual franchises dominating gaming time. According to analytics firm Newzoo, just 8% of gaming time is spent on new releases, with 92% dedicated to long-running titles like Call of Duty and Fortnite.
Discoverability remains a major hurdle for indie developers. Steam, the primary marketplace for PC games, has published over 14,000 games in 2024 alone, making it challenging for new titles to stand out. Developer Adam Riches notes that even games with excellent marketing and reviews can struggle to find an audience, describing success as “flipping a coin.”
Funding has also become more difficult, with investment in new projects slowing down. Some established studios are stepping in to support indie developers. For example, Among Us publisher Innersloth launched Outersloth, a fund to help developers complete their projects.
Despite these challenges, there have been some notable success stories. Games like Balatro, Helldivers II, and Palworld have found success by offering innovative gameplay. The strategy game Manor Lords, for instance, sold 4.5 million copies in early access by offering a unique twist on the settlement-building genre.
Industry experts emphasize the importance of innovation and realistic expectations. Snow Rui from Hooded Horse advises against rapid expansion and recommends focusing on long-term sustainability. Rhys Elliott from Midia Research suggests that while factors like strong IP, marketing, and community building are important, luck plays a significant role in a game’s success.
For indie developers like Adam Riches, success doesn’t necessarily mean blockbuster sales. With lower development costs and targeted marketing, smaller teams can still find a path forward. Riches’ own game, Loco Motive, debuted in Steam’s top-seller charts after a carefully timed marketing push.
Looking ahead, there’s cautious optimism. Development tools are becoming more accessible, potentially opening doors for smaller teams with creative ideas. Snow Rui believes there’s still room for fresh and innovative concepts in the gaming industry.
While the current landscape is challenging, developers remain resilient. The key seems to be adaptability, creativity, and a willingness to approach game development with both passion and pragmatism. As the industry continues to evolve, indie developers are finding new ways to navigate an increasingly complex market.
