In this analysis, we will unlock 3 market opportunities:
From big game studios to independent game developers making money by releasing “indie games”, the creator economy has arrived in the gaming space. Unlike video games released by major publishers with AAA titles (e.g. Grand Theft Auto, Call of Duty, Halo, Final Fantasy), indie games are created by solo game developers or smaller game studios without large marketing budgets or funding.
In 2020, there were 9,722 indie games released (up 25.6% from 2019). Hades, Among Us, Fall Guys, Spiritfarer, and Paradise Killer have gained mainstream popularity among casual gamers during the pandemic lockdown. Work-from-home has created opportunities for indie developers to work on side projects and release games.
New digital distribution channels have enabled game developers to sell their new games and reach wider audiences:
Now there are two types of game creators. (1) People who code and sell video games which we’ve already mentioned. (2) People who play games and sell virtual goods such as avatars, skins, gifts, collectibles, virtual worlds—or monetize storytelling through audience-building and streaming. They are known as the in-game creators, game modders, or game content creators.
User-generated content (UGC) platforms allow game players to participate in the gaming creators’ economy and monetize virtual worlds. Key players include: