How Much Do Indie Game Developers Make?

Tom McDonald
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how much do Indie game developers make

At some point, all gamers have thought about making their own game. I know I have! Especially with the release of game development software like Unreal and Unity, making game development more accessible than ever.

You no longer need to be a computer engineer or a fantastic artist; there are AI tools and Marketplaces to help with your technical or artistic shortcomings.

One of the most common questions asked by aspiring indie game developers is how much do Indie game developers make?

The earning potential in indie game development is a mixed bag. Some folks are raking in millions, while others are just scraping by. According to a blog post published in March 2022 by VG Insights, the financial landscape for indie developers is quite a rollercoaster:

  • Only 3% of indie developers hit the $1 million mark in gross revenue. Yeah, you read that right—just 3%!
  • The top 5% of indie games pull in over $555,000 each.
  • The median indie game makes about $13,000. Ouch.
  • The top 25% of indie games earn over $44,000.
  • The top 15% make over $108,000.
  • And only 15% of indie games make more than $100,000.

Remember, these figures are gross revenue. They don’t account for software, hardware, and marketing costs. Plus, many indie game developers juggle part-time jobs or freelance gigs, making a consistent income even more challenging.

Why Indie Games Are Successful

So, what separates the winners from the, well, not-so-winners? VG Insights breaks it down as follows.

  • Successful indie developers make a lot of games. They’re not one-hit wonders, but in it for the long haul.
  • They find publishers. This allows them to focus on what they’re good at – making awesome games.
  • They specialize. Whether it’s a genre or a particular game mechanic, they become experts.
  • They pick the right genres. Some genres perform better, period.
  • They adapt to changing player preferences. The gaming world is ever-changing, and these devs roll with the punches.

Examples of Successful Indie Games

capsule art for stardew valley

Alright, let’s take a look at some indie games that have crushed it. These games gained massive popularity and raked in some serious cash. Here’s a quick rundown:

GameYearGenreEstimated RevenueSteam Link
Cuphead2017Run-and-Gun$30M+Steam
Hades2020Roguelike$25M+Steam
Among Us2018Social Deduction$50M+Steam
Celeste2018Platformer$10M+Steam
Dead Cells2018Roguelike Metroidvania$20M+Steam
Hollow Knight2017Metroidvania$25M+Steam
Shovel Knight2014Platformer$15M+Steam
Undertale2015RPG$25M+Steam
Stardew Valley2016Farming Simulator$50M+Steam
The Binding of Isaac2011Roguelike Dungeon Crawler$40M+Steam
Note: The estimated revenues are based on various reports and are not exact figures.

The Unsung Heroes of Indie Game Development

While the big names often steal the spotlight, let’s not forget the indie devs who’ve carved out their niche of success. These folks may not be making headlines, but they’re living proof that you can make a sustainable living in game development.

Thomas Brush – Pinstripe

Meet Thomas Brush, the one-man army behind the hauntingly beautiful game Pinstripe. Thomas took the crowdfunding route, raising funds on Kickstarter to bring his vision to life. It took him about five years to develop Pinstripe, but it was critically acclaimed and profitable enough to sustain his indie game development journey.

Capsule art for Pinstripe

Key Takeaways:

  • Crowdfunding: Utilized Kickstarter to both fund the project and build a community.
  • Long-Term Commitment: Spent five years perfecting the game.
  • Critical Acclaim: The game’s quality speaks for itself, earning high praise from critics.
David Wehle – The First Tree

Next up is David Wehle, the creator of The First Tree. David balanced a full-time job while developing this emotional, narrative-driven game. The First Tree has received positive reviews and allowed David to transition into full-time game development.

capsule art for the first tree

Why Indie Games Fail

Many indie game developers fail to make a profit. VG Insights says the median indie game makes a mere $13,000. Additionally, only the top 5% of indie games released each year make over half a million dollars each.

There are several reasons why indie game developers fail. Some common causes include:

  • Making a game that is not high quality or fun to play.
  • Not marketing or promoting the game effectively.
  • Releasing the game on a platform where there is a lot of competition.
  • Not having enough money to develop and release the game.

Costs of Indie Game Development

Indie game development is a challenging process that requires a lot of time, effort, and money. This section will explore the various costs associated with indie game development.

Development Software

One of the most significant costs associated with indie game development is the cost of development software. Indie game developers must use different software tools such as game engines, graphics software, audio software, and programming tools.

These software tools can be expensive, and the cost can add up quickly. For example, the Unity game engine, one of the most popular game engines used by indie game developers, costs $185 monthly for the Pro version. (Unity does have a Personal plan that is free for those with revenue less than 100k in the last 12 months.) Other software tools, such as Adobe Photoshop or Maya, can cost hundreds or thousands of dollars.

Marketing Costs

Marketing is essential to indie game development, requiring significant time and money. Indie game developers must create a marketing plan that includes creating a website, social media presence, and other marketing materials such as trailers, screenshots, and press releases.

They may also need to attend trade shows and conferences to showcase their game and network with other developers and publishers. These marketing activities can be expensive, and the cost can vary depending on the scope and scale of the marketing plan.

Other Operational Costs

Indie game developers must also consider other operational costs such as office space, equipment, utilities, and other expenses. These costs can add up quickly, especially if the developer works from a dedicated office space. Other expenses, such as legal fees, accounting fees, and insurance, can also be significant.

In conclusion, indie game development is a challenging process requiring significant time and money investment. Indie game developers must consider the various costs associated with game development, including development software, marketing, and other operational costs. By carefully managing these costs, indie game developers can increase their chances of success and bring their games to market.

Strategies to Maximize Earnings

As an indie game developer, several strategies can be employed to maximize earnings. Here are some of the most effective ones:

Effective Marketing

Marketing is crucial to the success of any indie game. The developer needs to create a buzz around the game before it’s released and continue promoting it after launch. Effective marketing can help increase the game’s visibility and attract more players.

One effective marketing strategy is using social media platforms like Twitter, Facebook, and Instagram to promote the game. The developer can create a dedicated page for the game and post regular updates, screenshots, and trailers to build anticipation.

Another effective marketing strategy is to reach out to gaming influencers and bloggers and ask them to review the game. This can help to generate buzz and attract more players.

Community Building

Building a community around the game is another effective strategy for maximizing earnings. A strong community can help to generate word-of-mouth marketing and attract more players.

One effective way to build a community is to create a forum or Discord server where players can discuss the game, give feedback, and interact with the developer. This can help to develop a sense of ownership among the players and encourage them to spread the word about the game.

Another effective way to build a community is to organize events, such as tournaments or giveaways. This can help to keep the players engaged and interested in the game.

Continuous Updates

Continuous updates are essential to keeping players engaged and interested in the game. The developer needs to listen to feedback from the players and make improvements and additions to the game based on their suggestions.

One effective way to keep players engaged is to release regular updates that add new content, fix bugs, and improve gameplay. This can help to keep the players interested and encourage them to keep playing the game.

Another effective way to keep players engaged is to create a roadmap that outlines the developer’s plans for future updates. This can help to build anticipation among the players and encourage them to keep playing the game.

By employing these strategies, indie game developers can maximize their earnings and create successful games that attract a large player base.

Final Thoughts

Making a profitable indie game is challenging, but it is possible. I know firsthand as I have worked on my first game, Last Stand, for over a year. There have been many times I almost gave up, but I keep plugging away with hopes that I release my first game.

Here are a few key takeaways from this blog post:

  • The earning potential for indie game developers varies widely. Some developers make millions, while others barely scrape by.
  • Successful indie game developers typically make a lot of games, specialize in a particular genre or mechanic, and adapt to changing player preferences.
  • Some of the most successful indie games of recent years include Cuphead, Hades, Among Us, Celeste, and Stardew Valley.
  • Indie game developers can increase their chances of success by crowdfunding their games, building a community around them, and continuously updating them.

If you are interested in indie game development, I encourage you to start now. There are many resources available online and in libraries.

Good luck with your indie game development journey! I hope to play your games someday.

How much money do you need to start developing an indie game?

You don’t need a fortune to jump into game development. Unity offers a Personal Plan free of charge, and the internet has many free resources to get you started. That said, having some funds can be a big help. It allows you to purchase premium assets or even hire help for specialized tasks like sound design or advanced coding.

Are indie game developers successful?

While it’s true that many hobbyist game developers never complete their projects, don’t let that discourage you. Now is arguably the best time to dive into game development, thanks to many online tools and tutorials. With the right dedication and resources, success is more attainable than ever.

Who is the richest indie game developer?

The crown goes to Markus Persson, aka “Notch,” the creator of Minecraft. The game’s overwhelming success led to a $2.5 billion cash deal with Microsoft, making him the richest indie game developer to date.

How many years does it take to develop an indie game?

The time frame can vary widely depending on the scope of your project. I’ve been working on my game for about a year now. If it’s your first game, starting small is a good idea to get a feel for the development process. Some indie games can be developed in a few months, while others might take several years.

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Author

With over two decades of experience in technical and developer support, Tom has expertise in troubleshooting APIs. Over the years, he has built a many websites and tools with a primary focus on web development technologies including C#, ASP.NET, Blazor, HTML, and CSS. Last year, Tom starting to learn game development and is currently working on his first game "Last Stand," a zombie base defense game designed in Unity 3D.