In September 2023, Unity, the popular game engine used by millions of developers, announced that Unity’s pricing model was changing to include a per-installation fee. This change was met with immediate and widespread backlash from the developer community, who argued that it would unfairly target small developers and indie studios.
Unity’s new pricing model is just one symptom of a bigger problem facing indie devs: the low price of software. In recent years, the mobile app market has shifted to a model of low prices and high volume. This model has been adopted by many other software markets, including the video game industry.
While this model has benefited consumers, it has made it difficult for indie devs to make a profit. Many indie devs are forced to sell their games at very low prices in order to compete with larger studios. This makes it difficult to recoup the costs of development and marketing, and it can lead to lower quality games.
Unity’s new pricing model could exacerbate this problem. For indie devs who release their games on multiple platforms, the per-installation fee could add up to a significant cost. This could make it even more difficult for indie devs to make a profit, and it could lead to some indie devs abandoning development altogether.
In this blog post, we will explore the challenges facing indie devs in more depth. We will also discuss what indie devs can do to overcome these challenges and what gamers can do to support indie devs.
A Trip Down Memory Lane – Game Pricing in Perspective
Gaming’s golden era—the time of busy arcades and the thrilling novelty of home consoles—came with a hefty price tag. In the early 1980s, gamers dropped $30 on games like Space Invaders.
When the Atari 2600 hit the market in 1977, it boasted a price tag of $190. Adjust that for inflation, and it’s akin to forking out over $920 today.
By the 80s and 90s, however, game prices began their descent, thanks to the rising prominence of home consoles, the growing personal computer usage, and the fierce competition of Japanese gaming giants.
Fast forward to today: while AAA games usually sport a $60+ price tag, indie games tend to fall between the $5-$30 range. Yet, the misconception is that indie prices are on the rise. In reality, many indie developers feel pressured to keep prices low. This pressure comes from fierce competition with other indie devs, larger studios, and the low prices of mobile apps and other software.
To put this into perspective, let’s compare the price of a video game to something as everyday as a Happy Meal from McDonald’s, which typically costs between $4-$8. This means you can purchase quality games like Hollow Knight or Stardew Valley for a little more than a burger and fries.
But remember: with a game, it often takes a programmer over a year to develop and publish. And that’s not even touching on the effort involved in marketing and distribution. When you compare that to the short time it takes to prepare a Happy Meal, are we really compensating developers fairly for the games they create?
Unraveling the Evolution of Game Pricing:
- Home Consoles: Arcades dominated the early gaming scene with their per-play fee system. But with home consoles entering the scene, gamers now had a one-time purchase, eliminating the per-play costs.
- Rise of PCs: Personal computers democratized game development. More creators meant more competition, subsequently driving down prices.
- Japanese Gaming Powerhouses: Companies like Nintendo and Sega redefined quality in the 1980s, pushing their American counterparts to recalibrate their pricing.
- Early Access Phenomenon: Early access offered a win-win: gamers got access to games in development, and developers secured funds to continue. These games, however, were priced lower than their full-fledged versions.
- Mobile Gaming Revolution: Priced extremely low, mobile games have exerted a downward pressure on prices across the PC and console gaming markets.
As you can see, video game pricing has changed due to many factors over the years. Today’s indie game prices reflect the challenges of our constantly changing industry.
Unity’s Pricing Shift – A Symptom of a Bigger Challenge
In September 2023, Unity unveiled plans to implement a Unity Runtime Fee. The announcement ignited a significant backlash within the developer community.
Original Pricing Model:
The Unity Runtime Fee would be applicable when games surpassed certain revenue and install count thresholds:
- Unity Personal and Unity Plus: Games that generated $200,000 USD or more in the last 12 months AND had at least 200,000 lifetime game installs.
- Unity Pro and Unity Enterprise: Games that accrued $1,000,000 USD or more in the past year AND had 1,000,000 or more lifetime game installs.
The intent was to apply the fee to games that had found substantial success, thereby not burdening those still finding their footing.
Community Backlash and Unity’s Response:
The developer community was vocally critical. Many felt the model disproportionately affected smaller developers and indie studios, threatening innovation and deterring risk-taking.
Reacting to the uproar, Unity’s leadership reconsidered. Marc Whitten of Unity Create acknowledged the oversight and apologized for not involving the community more deeply. In response, Unity made several significant changes:
- Unity Personal plan games would remain exempt from the Runtime Fee.
- The revenue cap for Unity Personal was raised from $100,000 to $200,000, and the “Made with Unity” splash screen requirement was abolished.
- Games generating less than $1 million in a trailing 12-month period would not be subject to the fee.
- The Runtime Fee would apply only from the next LTS Unity version shipping in 2024. Existing projects would remain unaffected unless developers opted to upgrade to this newer Unity version.
- Developers would be given an option of either a 2.5% revenue share or a calculated amount based on the number of new monthly game engagements, with the billing always reflecting the lower amount.
Marc Whitten’s statement emphasized Unity’s commitment to its community and acknowledged the importance of open dialogue.
Unity’s pricing alteration underscores a broader challenge indie developers confront: the undervaluing of software. For indie developers to thrive, they need to assign greater value to their products, which is challenging in an environment accustomed to low-cost software. Gamers should recognize the true value behind indie games and be willing to pay a price that reflects the effort and innovation these creations encompass.
Navigating the Indie Game Pricing Landscape
Indie game developers face a unique pricing dilemma. On the one hand, they are under immense pressure to keep their prices low to compete in a crowded market. On the other hand, they need to charge enough to cover development costs and make a profit.
This dilemma is often rooted in a fundamental undervaluation of indie games. Many consumers have come to expect high-quality games at low prices, thanks partly to the rise of mobile gaming and freemium titles. While this may benefit consumers in the short term, it can hurt indie developers in the long run.
Another challenge facing indie developers is the growing trend of overproduction. With the advent of digital distribution, it has become easier and cheaper than ever to release a game. This has led to a flood of new games hitting the market every year, making it difficult for indie titles to stand out.
To compete in this crowded environment, some indie developers resort to a “race to the bottom” in pricing, offering their games at extremely low prices. This can lead to a vicious cycle, where developers feel pressured to keep their prices low in order to attract sales, which further devalues indie games in the eyes of consumers.
The Low Price Paradox
Setting the right price for an indie game is a complex and delicate task. Developers need to consider various factors, including the cost of development, the target market, and the competitive landscape.
One of the biggest challenges for indie developers is that the price of a game is often not indicative of its quality. Many high-quality indie games are available at very low prices, while some low-quality indie games are priced at a premium.
This paradox can frustrate indie developers, who may feel their games are undervalued. However, it is important to remember that gamers are willing to pay for games that they believe offer good value for money.
Value vs. Price
There is a growing gap between the exhaustive effort in high-quality game development and the often underwhelming price tag it commands.
Creating a high-quality video game is a time-consuming and expensive process. It requires the skills and expertise of various professionals, including artists, programmers, designers, and writers.
Despite the significant investment required, indie games are often priced much lower than AAA games. This is due to several factors, including the smaller scale of indie games, the competitive landscape, and the undervaluation of indie games by consumers.
Quantity Over Quality
The growing trend of flooding the market with games has led to several negative consequences. One of the most concerning is its impact on the perceived value of indie games.
When consumers are bombarded with new games daily, it becomes difficult to differentiate between high-quality and low-quality titles. This can lead to the perception that indie games are generally of lower quality than AAA games.
This perception can make it difficult for indie developers to charge fair prices for their games. Gamers may be hesitant to pay a premium for an indie game when they believe that there are plenty of other high-quality games available at lower prices.
Quality Advocacy
One way to address the pricing challenges facing indie developers is to champion the case for creating fewer but more refined games.
Instead of mass-producing subpar titles, indie developers should focus on creating high-quality games that offer a unique and memorable experience. This will help to differentiate indie games from the rest of the market and make it easier for developers to charge fair prices.
Low-Effort Game Releases and Asset Flips
One of the biggest challenges facing the indie game industry today is the prevalence of low-effort game releases and asset flips. Asset flips are games created by reusing pre-made assets, such as character models, environments, and code. While asset flips can be a legitimate way to develop games, many low-effort asset flips are released on Steam and other platforms without any real effort being put into them.
These games often suffer from poor quality, bugs, and lack of content. They can also be misleading, as they often use screenshots and trailers that do not represent the actual game.
The release of low-effort asset flips hurts the indie game industry in a number of ways. First, it can damage the reputation of indie games as a whole. When gamers purchase a low-quality asset flip, they may be less likely to try other indie games in the future.
Second, releasing low-effort asset flips can make it more difficult for high-quality indie games to get noticed. With so many low-quality games flooding the market, it can be difficult for gamers to find the gems that are truly worth playing.
Finally, releasing low-effort asset flips can discourage indie developers from making high-quality games. If developers see that low-effort asset flips are selling well, they may be tempted to cut corners and release their low-quality games to make a profit.
Encouraging Game Developers to Prioritize Quality
There are a number of things that game developers can do to prioritize quality over quick, profit-driven releases. Here are a few tips:
- Take your time: Don’t rush the development process. Take the time to polish your game and ensure it is of the highest possible quality.
- Playtest your game: Playtest your game thoroughly and get feedback from others. This will help you to identify any problems with the game and make necessary changes.
- Be honest with your audience: Be honest about the scope and content of your game. Don’t overpromise and underdeliver.
- Price your game fairly: Charge a fair price for your game that reflects the quality and value of the experience.
It is important to remember that gamers are willing to pay for high-quality games. By prioritizing quality over quick, profit-driven releases, indie developers can create games that gamers will love and support.
Championing and Supporting Indie Developers
The indie game development community is a vital part of the overall gaming landscape. Indie developers are responsible for some of the most innovative and creative games released in recent years.
However, indie developers face many challenges, including limited resources, intense competition, and low game prices. It is essential for gamers and the broader industry to understand and support the indie game development community.
How Gamers Can Support Indie Developers
There are several ways that gamers can support indie developers. Here are a few ideas:
- Buy indie games: The best way to support indie developers is to buy their games. If you see an indie game that looks interesting, don’t be afraid to give it a try. You may be surprised at how much you enjoy it.
- Spread the word: Tell your friends and family about indie games that you love. Share screenshots and videos on social media. Write positive reviews on Steam and other platforms. The more people know about indie games, the more successful indie developers can be.
- Support indie developers on Patreon or other crowdfunding platforms: Many indie developers use crowdfunding to finance their projects. If you see an indie game on Patreon or another crowdfunding platform you want to support, don’t hesitate to donate.
How the Broader Industry Can Support Indie Developers
The broader gaming industry can also support indie developers. For example, game publishers can provide indie developers with financial support, marketing assistance, and access to distribution channels.
Gaming platforms like Steam and itch.io can also support indie developers by making it easier for them to release and sell their games. They can also do more to promote indie games and help gamers discover new games.
Final Thoughts
The challenges facing indie game developers are real, but they are not insurmountable. By focusing on quality over quantity, indie developers can create games that gamers will love and support. Gamers and the broader industry can also do more to support the indie game development community.
Here are a few final thoughts on how to address the challenges facing indie developers:
- Gamers: Be more willing to try new indie games and spread the word about the ones you enjoy. Support indie developers on Patreon or other crowdfunding platforms.
- Broader industry: Provide indie developers with financial support, marketing assistance, and access to distribution channels. Do more to promote indie games and help gamers discover new games.
- Indie developers: Focus on creating high-quality games that offer a unique and memorable experience. Take your time, playtest your games, be honest with your audience, and price your games fairly.
Together, we can create a brighter future for indie game development. Indie games bring a unique and refreshing perspective to the gaming landscape, and they deserve to be supported.
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