Category: business

I’ve sold games through yahoo games, Realgames, GoG, Steam, Iwin, the apple appstore, macgamestore, the humble store, and probably about a dozen minor ones I cannot even remember. Currently the ‘active’ ones, where I make literally 99% of my sales are:

Steam

GoG

Humble Store

Apple OSX store

Everything else is a rounding error. To be honest, those last two are pretty close to rounding errors already. I am about to release a few games on the new kongregate store, but after that I am doing some serious reconsidering of my strategy on this. The landscape has changed, technology and expectations have changed, developers options are definitely better, and its time to take a long hard look at the current system.

Basically any store of any consequence is trying to grab market share from steam. Steam had a VERY rocky start (younger gamers may not remember the absolute hatred and anger at the instability and clunkiness and inconvenience of steam on its initial release), but quickly rose to be the market leader. When it started accepting indie games, the premise was pretty simple: We take 30% of the retail price, and we provide a website to handle discovery, order-taking and fraud detection, demo and full-version hosting, automatic updates and some community features. Is this a good deal? And the vast majority of people thought ‘fuck yes’. It WAS a good deal, but 90% of the ‘good’ part came from exposure to such a huge audience. You could already get order taking, fraud detection and stats for about 5-10% from other companies, including getting the email addresses of your customers, depending how you haggled. Later, steam improved vastly on what it had to offer, as we got achievements, real-time sales tracking, trading cards, steamworks, a simpler (GUI-based) updating tool, better customisation of store pages, a steam-widget you could embed on your site, developer pages, and GUI tools to simplify setting discounts and participating in sales.

Debate goes on in 2018 as to whether this is worth 30%, because of the vast change in discover-ability on steam caused by the opening of the store to hobbyists and practically everyone. Thats an argument for another time, and not one that I feel is the most relevant to this blog post.

The real point of this post is to point out a pretty big discrepancy between the steam value-proposition (to devs) and that from other portals. Here is the headline:

Unless you are offering ALL of that, AND something new or better to make it worth my while, and probably throwing some swag my way, why the fucking fuck would I give you 30% of my hard earned income?

The assumption seems to be that you can set up a store, do some minimal GUI design on it, put out a press release and expect to cash in your thirty percent of every game that the developers take the time to configure for your portal. I think that time is coming to an end. The thirty percent is arguable anyway, but unless you developer experience is BETTER than steam (and lets be honest, its really not), why on earth should you take the same cut?

Hell… even steam’s offerings in some areas are extremely low quality. The steam community forums are awful, with no WYSIWYG component, no real-time preview, very limited features in comparison to software like discourse (which I have here on my forums). The stats reporting is nice, but still nowhere near as fast as it should be. There is no really usable inbuilt player-metrics component in steamworks, no way to easily upload images of work-in-progress stuff to show off early access development on the forums, there is no tech support ticket system to allow us to give proper tech support to our customers, no notification of new reviews for developers… I could go on.

Valve can ‘kind of get away with this’ for a while… because they are the market leader. But new portals cannot. Valve also do the odd cool thing like steam dev days, or send people nice gifts, even chocolate, which is definitely appreciated. they meet up with developers and give them free drinks (also appreciated). This kind of thing actually *does* matter. The Humble Bundle guys and Kongregate do get that side of it, but I’m not sure others do, and even those two have a long way to go to offer true competition for steam. Try setting sale discounts for 20 different titles on the humble store. its not fun.

So starting with next year, and my *next* game (Democracy 4), I’m going to change my view when it comes to online game stores. The game will definitely come to steam, but if anybody else wants to sell that game, my attitude will very much be… Whats it worth to me?

It doesn’t JUST have to be money (although setting your cut noticeably BELOW 30% would definitely get my attention), it can be way-better community experience, way better stats and metrics support, an awesome tech-support feature, incredibly fast and helpful developer support, an annual expo where you wine and dine us, fuck it… free chocolate or bottles of champagne sent to my house. A free fucking T-shirt? Throw us developers a fucking bone. There is no magical law that means we have to be on your store. We cover 95% of the market simply by being on steam. lets see some actual competition for a change.

 

 

I recently showed off my latest game production Line at a big UK games show (EGX), and not long after than, I took a trip (my first ever) to Boston to meet up with some Boston devs and talk to some nice people from valve. I also had a look around the local Boston indie games festival event while I was there, and talked to a bunch of indies about various stuff. In-between this I visited the Boston tea party museum, which you kind of have to do if you are very English and in Boston right?

Now I am finally recovered from jet lag, and back working on cool new stuff for Production Line, I have time to reflect on the indie scene as I see it now in September 2018.

I think this is a good time to do this, as a number of people are talking about this article about the reality of indie game dev, and there has also been debate about this article, about the experience of some fellow indies (who also happened to be next to us last year at EGX). Its probably also worth mentioning that Limit theory’s developer seems to have quit the project.

Anyway…

yeah its not getting any easier, and I don’t see any immediate reason to believe it will. In theory, eventually enough indie developers go bankrupt in a saturated market so that the self-correcting methods of capitalism kick-in, people realize that its no different to writing a novel (in terms of success chances), and the people who are currently ‘chasing the indie dream’ get jobs in banking or business app development. In practice it seems that indie development is still seen as attractive enough that there is another decade or so of new entrants coming in to replace every developer who drops out when their finances run dry. I really cannot see the ‘number of games released on steam this week’ metric dropping a lot in the medium term.

Another potential solution or equilibrium would be a more even and less hit-driven distribution of revenue from stores could make indie devs more sustainable at the margins. Every RimWorld or Prison Architect, of for that matter every PubG is making so many bazillions of dollars of pure profit, that if it could be distributed over 100x as many games, there would be a lot more solvent developers and maybe a handful fewer multi-multi-millionaires on steam. Arguably that would be a good thing, but not something I think you can really force.

Ultimately there a few forces that are naturally causing the current state of affairs to persist, and I dont think any of them are evil, or corrupt, or bad per-se, they are just the reality.

Force #1: people want this lifestyle so much they are prepared to take unnecessary risks. That means the price is driven down. Its simple supply and demand, and because many people are as happy to live on noodles as a game developer than they would be to apply the same skills to biz-app development at a $90,000 salary… then the average developer is going to see their wage driven down. Thats simple supply/demand economics and that is not going to change.

Force #2: Barriers to entry have dropped hugely. We can argue the pros and cons of the $100 steam fee, but the simple fact is unity and similar engines & asset stores mean its easier to make a game than ever before. That vastly increases the pool of people able to compete in the market.

Force #3: There is a massive skill disparity in the range of ‘indie’ game developers. This is the one that requires more explanation:

A really AWESOME bricklayer may be able to lay bricks at double the rate of a bricklayer who learned the trade last week. Maybe even three times as fast. Thats awesome. But a really AWESOME programmer is likely 40-50 or even 100x as productive as a newcomer to programming. It sounds like bullshit but its true, and the sad thing is, you really need to HAVE that much experience before you truly appreciate this reality. The same is likely true for artists.

If you are a newcomer to programming, think of all the time you spend debugging, the time you spend googling the answer to something, the time you spend refactoring, the time you spend on skype or discord asking people for help, and then remove ALL of it, and thats how it is when you have coded *that kind of thing* 10 or 20 times already. Once you know what you are doing at a certain level, programming is just typing. I can create new user interface code for Production Line pretty much at the speed I can type this blog post, and to be frank, using whole tomatoes improved intellisense, its actually quicker for me than typing English.

In many ways I am the *WORST CASE* scenario as a competing indie developer. I have 37 years coding experience, and 20 years indie dev experience. I learned to type before home computers even existed, and used to get a book and type out the text from the book on a manual typewriter *for fun* as a child. I’m married, and have no kids so I’m not constantly socializing or dating, and have zero distractions. I work from home in the countryside in a 100% distraction-free environment. I can afford the most comfortable chair imaginable, the fastest PC imaginable, I am healthy, I love my job, I have no boss, and no financial worries. Add to this… I have no major hobbies, I hate most TV, the majority of books I read for fun are about programming or business or marketing.

If you imagine designing a robot to take human form and churn out as much productivity as possible as an indie dev… its not *that* much better than me. The only things working against me are the fact that I guess I’m older than average so theoretically less energised? (I made a a developer blog video on Boxing day, so I cant see the lack of energy myself…)

Anyway my point is… I am your competition as an indie dev. You may not like to think like that, and I certainly like to be helpful to other indies, and encourage people, but the fact is, I exist and I’m making games 60 hours a week and I love it. I am not the only one. You are also trying out-code Chris Delay from introversion, Jonathan Blow, Jamie Cheng, Ryan Clark, and a bunch of other indies who have WAY more experience and WAY more technical ability than you (probably), simply because of age and time.

(This sounds horribly arrogant, but I’m not claiming to be any ‘better’ a person and certainly not innately any cleverer than anybody else. I’ve just done it a LONG time, and I am unusually single minded and focused. Essentially I’m tough competition due to time, age, and genes.)

..so what am i getting at here?

The excellent Lake Ridden post mortem includes this:

“35h work week. We measured the SCRUM points completed and was able to get the same amount of things done in 35h instead of the usual 40h. All while the stress number was staying the same or dropping. Everybody was actively encouraged to use this extra free time to see family or do exercise.”

Which sounds GREAT and I wish the whole world was like that, but unfortunately it is not. They are indie devs, and competing in the free market with the rest of us. I’m not working 35 or even 40 hours, and never will ( I am too obsessed with my games), and by mere fact of being much older and more experienced than that team, I have a huge advantage. You cannot legislate that advantage away, nobody can make a solo indie dev who owns the company work less hard. The playing field is NOT level, and its not going to be.

So whats my answer to this problem?

I absolutely accept that I do not have one. It is, simply put, really fucking hard right now, and probably always will be. Music, Writing, Acting, game-dev, they all suffer from this problem. Too many people want to do it for everyone to end up with a great lifestyle, working conditions and standard of living. I absolutely understand why people would like indie game dev to pay (on average) like a normal 9-5 job with normal 9-5 hours, but this is not about to happen, sorry. If you expect gamers to ‘pay more’ to subsidize better working conditions for indie game devs, ask yourself when you demanded the option to pay an extra amount to spotify to support indie musicians.

HUGE disclaimer: If you work for someone else in a big company like EA/Ubisoft/Whoever else, then absolutely you should NOT be working > 40 hour weeks. I ROUTINELY went home dead on 6PM from my jobs in AAA and never got fired for it. Similarly, if you are a super-experienced developer in those same companies then you should FIGHT LIKE HELL to get the pay you deserve. Absolutely some coders should earn 10x what other coders earn, and if they wont pay you that, leave.

TL;DR: Indie dev is really hard. The experienced devs have an advantage. This sucks if you are new. This will not change.

 

 

I will never understand the obsession that modern companies have with reducing headcount. Its almost pathological. I totally understand that the marketplace can be competitive and that sometimes you need to cut costs, but this obsession with not employing any humans hits the hardest with companies that quite definitely have the available cash to take on a few extra staff.

The nature of may business (very long established one-man biz, set in a remote rural location, lots of legacy code, home-brew engine) makes hiring people very difficult, purely for practical and technical reasons. I am definitely not opposed to hiring people, and I actually think I’d feel really good about it. Every month I have to pay out royalty checks to 3 different people, and also pay at least one contractor, and it doesn’t feel bad, it feels GOOD, knowing that I’m contributing to the wider economy, and improving other peoples standards of living by creating employment. In some cases, those payments can help kick-start other small businesses who then employ people, and thats just awesome. Isn’t this the sort of thing we are supposed to be proud of as entrepreneurs?

To see whether or not you fall into the category of business owners who are really not doing their bit, take this simple test:

1. Is it technically difficult, or practically difficult for you to hire new staff for some reason? If so, then I’ll let you off.
2. Check your profit margin. is it less than 5%? are your company finances looking shaky? are profits falling dramatically? If so, then I’ll let you off.
3. When you call the phone number for your company as a customer, do you get through to a real live human within 15 seconds? If so, then I’ll let you off.
4. If you email your company as a customer with a technical support or customer services request, do you hear back from a human within one day? If so, then I’ll let you off.

I’m guessing this still leaves a very large number of businesses who could be doing amazing things employment wise, who instead are sitting on money in a bank and twiddling their thumbs.

Apples current cash hoard is 267 billion dollars. Their profit margin is 21.63%. I’m guessing that you cant phone up and speak directly to an apple customer service person right now, anywhere in the world. Why on earth not? (I just tried…and its a slow, irritating computer voice…to save hiring enough people…). The current total apple workforce is 123,000 people.

So the cash on hand for apple would allow them to give every single employee a windfall payment of $2,170731.

Yup, I had to check that several times to ensure its correct because it absolutely fucking cannot be. They can make every single employee of the company a dollar millionaire twice over. Or they could just spend HALF their current *cash* and make them all dollar millionaires. Lets look at it another way. The average salary in the US in the bay area tech firms is $142,000. Lets almost double that (yeah right) to account for employment costs, office space etc, and call it $0.25 million per employee per year.

Apple could afford to hire one million and 68 thousand tech workers for a year and still not burn through its entire cash hoard.

Or to put it another way, assuming all 123k people earn that crazy bay area salary, apple could double its current workforce, have them all sit on their ass doing absolutely nothing all day, and it would still take 8 years for the resulting cash drain to wipe out their *current* cash mountain.

PLEASE someone tell me my sums are wrong because they MUST be right? It couldn’t possibly be the case that despite Tim Cook being a ‘nice guy’ the first openly gay tech CEO who is trendy and right-on, and popular and seemingly one of the good guys, that he would rather sit on that vast obscene pile of capital and not spend a penny of it on increasing the workforce or improving the income of apples employees? Surely that would not be the case, Especially as Donald trumps recent tax changes are apparently designed to boost employment?

And of course, lets not forget that in the very home of tech-financial excess, San Francisco, there is a MAJOR homelessness problem. Its actually truly shocking. Apple could fix this out of their spare change. In the UK today there was an announced plan to completely eradicate rough sleeping which was put at costing £100 million. Say it should be £200 million instead, which is $260 million, and this would be for ONE city not a country. Apple could do that with one thousandth of its cash hoard.

These companies are not innovators who are making our lives better. They are like pharaohs and emperors treating the rest of us like peasants, beneath their contempt, not even worth saving.