Game Design, Programming and running a one-man games business…

The super-helpful 2020 indie games company costs breakdown smorgasbord

In a continuing war with the patronizing wordpress ‘headline clickbait analyzer, I tried using smorgasbord to rate as an uncommon word…but no joy. Enjoy this non-clikbait post I guess…

How much does it cost to run a one-man indie game studio in the UK? What are all those costs that you don’t think about? I have no idea! but I can tell you what it costs to run positech games, if that’s interesting? Lets assume so:

WEB HOSTING

I have a dedicated server with liquidweb. Its possibly overkill, but it runs this blog, a lot of back-end stats reporting stuff and the challenges system for gratuitous space battles, the web pages for a handful of different domains and about a dozen games. Its also handy as a ftp-drop for sending stuff to people without worrying about dropbox accounts/limits/costs etc. The cost of this is $219 / month. A dedicated server is l33t because I can reboot it at will, install any version of php or whatever I want, and I’m not at the mercy of sharing a physical box with someone else.

ACCOUNTANT

I have a proper Limited Company, and its hellish without an accountant if you deal with VAT and multiple currencies, and multiple banks accounts and business investments etc…so I have an accountant in the UK that charges me roughly $135 / month. They are more like bookkeepers than accountants, as I handle my own VAT and don’t do any clever tax avoidance/offshore nonsense.

MAILING LIST

I use ymlp to maintain a small mailing list of about 10,000 people. I send one email a month and this costs me about $30/month. This means I don’t have to worry about my domain being seen as spam, and they can handle opt-in and unsubscribe handling etc. Not 100% sure its good value for money, always hovering on cancelling.

COMPANIES HOUSE

To have a limited-liability company in the UK you have to pay an annual registration fee. Worked out on a monthly basis its just $1.40/month.

APPLE DEVELOPER FEES

To sell games on apples store, and some other stuff, you need to pay them money (WTF?) looks like in the last 12 months I’ve paid them roughly $7/month for this honor.

ANTI-VIRUS SUBSCRIPTION

Do not risk being without it. I use malwarebytes paid version, works out at $3.25/month.

BACKUP SOFTWARE SUBSCRIPTION

Again, don’t risk it. I use carbonite, and it works out at $6/month.

BANK SOFTWARE

I use quickfile, to do automated tax-payments and access bank accounts remotely. It costs me about $5/month.

INTERNET ACCESS

I have fiber-to-the-premises (140 mbps down, 30 up) and a landline phone (I know old people!) and monthly this costs me a whopping $80/month.

Everything else I can think of is one-off payments for equipment, like a new PC or whatever, and project-specific stuff like PR or marketing/advertising budgets, or obviously what it costs me to hire people to do art/music/code and so on. But these are the current ‘fixed costs’ of positech. A summary:

Web Hosting $  219.0045.00%
Accountant $  135.0027.74%
Mailing List $    30.006.16%
Companies House $       1.400.29%
Apple $       7.001.44%
Antivirus $       3.250.67%
Backup $       6.001.23%
Banking $       5.001.03%
Internet $    80.0016.44%
 $  486.65

Now I actually write it all out, it seems like quite a lot. Almost $500 to just exist, without eating or paying any other bills, or hiring anyone to do anything.

Democracy 4 gets awesome new update, and coming soon on steam.

You will be excited to know that wordpresses automatic clickbait generator rates that headline as 73/100 because of the ‘power word’ *new*. I get points for the ‘uncommon’ word *awesome* too. Is this really human civilisation at its peak?

anyway…

I’ve just updated Democracy 4 to build 1.09 (still in alpha from our website here BTW), and there is a huge list of 31 official fixes plus some minor stuff I didn’t bother mentioning like grammar fixes (thanks ginny). The fixes are many and various but a lot of them are balance tweaks to make the game a bit harder, and various extra links between items have been added, and a bunch of equations adjusted.

I should probably call out the fact that prt sc key on your keyboard now drops a png format screenshot inside

\my documents\my games\democracy4\screenshots.

In fact it bugs me a bit that often you have to ask about a game with ‘how do I print or copy a screenshot in X’ where we all have a button that basically says SCREENSHOT BUTTON right there in our faces on the keyboard… bah. Plus its 2020 and hard drives/internet speeds are awesome, so screw lossy jpgs, I’m saving stuff as pngs :D.

For anybody unsure, the game checks once a day (if you run it obviously) to see if there is a new version, then pops up a box to tell you, and tells you what’s in this version, but then you have to go the humble bundle link and re-grab the installer and re-run it over the top. If you need your link resent, you can do that here. (be warned, sometimes they go in ‘spam’ or ‘promotions’.

oh dear…

I have exciting news in that yes, we now have a listing on steam, and so its officially coming to steam on the 6th October. If you think that’s really soon then *gulp* so do I, but I like deadlines :D. Obviously that’s EARLY ACCESS, not the final game release. So much more work to be done before then… although I expect that by that date we will have a bunch more countries in the game, even if its all still in English at that point.

So anyway… wishlists are a thing, and more important than you think because steam apparently takes the number of wishlists into account in promoting new games, so its super-helpful to have people who are interested in the game wishlisting it in advance. You can do that using this handy little widget below this text here…

Exciting stuff :D. The trouble is there is discussion among indie devs as to how many wish lists you need to get promotion for your game. Some people say 5k minimum, 20k awesome. Others say 50k minimum. That sounds like a lot. I have no idea how things will go in the mere four weeks between now and my steam release, but I’m hoping for a shot at 20k anyway.

This means I now have a new thing to check and obsess over EVERY DAY as part of my job, as though steam sales / direct sales / stock market / exchange rate / ad performance / youtube views were not already enough! Luckily I have a monitor that can keep 64 spreadsheets on the screen at the same time, so I guess that’s just fine :D

Democracy 4 goes on sale…OMG

So yup, this was a long time coming and I feel worthy of a proper blog post about it. Actually, TBH there is not much else to do in the hours after hitting the big old release button. For those who just want the link, you can now grab the game here.

Now on to some thoughts about the process of making the game.

Democracy 3 is positechs most successful game by some margin. It came out a long time ago now, and we did four (yes FOUR) expansions to the game (Social Engineering, Extremism, Clones & Drones and Electioneering) and one semi-sequel (Democracy 3:Africa). There was then quite a lull before the release of Democracy 4 today, so what actually happened?

The coding in this game is HARD, and the design is super-hard. The number of interconnected things to balance, combined with the fairly whacky way in which its coded around a neural network means this is real headache inducing stuff to work on. Towards the end of Democracy 3 I was seriously burned out mentally from the stress of it. I am a workaholic, and work is fine for me, but the constant debugging-hell of the complexity of the beast was gruelling for such a long period and I needed to switch focus.

So I met Jeff Sheen, and he agreed to make Democracy 3 Africa, and meanwhile I got involved with game publishing in a bigger way, which led to Big Pharma, Political Animals and Shadowhand. I cant cope without coding, so I started coding a totally new game, the car factory simulation: Production Line.

That game took a while, and did very well, and spawned 2 expansions too, and all the time I was doing that, Jeff was improving the core engine of Democracy 3 and working on the new UI for Democracy 4. As a result we updated D3 with unicode support, which meant it could work with other languages much better.

So when I finally switched from Production Line to D4, we already had an engine that was doing vector graphics (yay! crisper UI) and unicode support (yay! Russian and Chinese translations without any problem!). The main work on Democracy 4 was related to mechanics-related stuff, like a redesign of how voters handle money, support for coalition government, and the addition of new ways to get political capital, plus news reports, situation warnings, a new UI to examine stats in the game, and the complete redesign of the main screen and the way icons are sized/positioned/rendered.

This was TRICKY.

And then we had the last few months of stuff which has been adding in all the up-to-date stuff like fake news, polarization, border walls, police body cameras, UBI, a private space program yada yada. Politics has changed since Democracy 3 and we really needed to represent that as much as we could.

Frankly, it has taken us too long, and we have become a bit obsessed with the UI design, and getting things to look crisp, and for the core simulation to be WAY more accurate and less buggy than D3. I would say 75% of the work on D4 is under-the-hood improvements the player cannot immediately point at. I *do* think it has been worth it. Also, this was my first ever project as an indie where I was working alongside another coder, which is something I have nmot done since my lionhead days, and never as ‘the boss’ so that was a whole new skillset and experience to worry about as well.

(And you can probably tell by all this that it means Democracy 4 is the most expensive game positech has made, in terms of dev cost, which adds an extra level of worry and stress all of its own)

And that brings us to today, which is exciting because its more the beginning of a journey than the end because D4 will be in alpha, and then in steams Early Access. We NEVER HAD THIS IN D3, which meant that some parts of D3 were flawed, and we didn’t have enough feedback early enough to fix them. With Early Access, this will be much, much better. The Democracy community is awesome, and I expect to have a really cool conversation with players about what needs to change, expand, be improved upon, or even removed. The wisdom of crowds is a real thing!

I should also point out that this is scary, and stressful, because OMG politics. We released Democracy 1,2,3 in relatively stable times. There was no fake news, no Donald Trump, no allegation of election hacking. No coronavirus, no black lives matter protests, politics was actually more polite (although we didn’t think so at the time).

Reporter's Question, Repeated, Sets Trump on Latest Media Attack ...

Most importantly… social media was barely a thing. Now, Social media is THE ENTIRE UNIVERSE. That means a more angry, divided and tribal playerbase is to be expected. Moderating forums will be…interesting. Handling abusive emails from players is something I really hate. Unless you are someone selling creative works online, you cannot imagine the impact of strangers randomly sending you abusive messages 24/7 has on people. Its bad.

But hopefully the good outweighs the bad. So far, commentary on the developer blogs has been awesome, and I’ve been very clear that we know our own biases are bound to be in the game somewhere, and are open to constructive criticism. With any luck, we can avoid the game starting all out civil war, with blood on the forums!

Thanks to everybody’s encouraging words as we have been working on the game so far. Its much appreciated :D. Onwards and upwards… I guess I should embed the widget here…

If anyone can do it, everyone will.

Every now and then I come across a story about how mid-tier youtubers are making an absolute pittance, or that indie bands on spotify earn less than minimum wage, or that writers (like my wife!) can expect to earn a really trivial amount for what they do.

This is totally and utterly expected, and its down to barriers of entry, of which there are a few.

Barriers to entry is an economics term that refers to all the stuff you need to have to produce a certain product in the market. Some industries naturally have small barriers to entry (busking only requires a guitar, for example) and some have huge barriers (spaceships, cars, silicon chip production). Generally speaking, barriers to entry are very bad, from an economics point-of-view, because high barriers-to-entry lead to ‘abnormal profits’ by people in that market, as its difficult for newcomers to enter the market and bid down the price of the product.

It might seem that this explains why indie game devs rarely make any money, because the barriers to entry for indie dev are tiny. You need an office chair, a laptop, an internet connection, and…a rudimentary skill in programming and game design. Thats a LOT of people, and its WAY more than it used to be, now you dont have to code your own engine and dev-tools are affordable.

SIDE-NOTE: YES amazingly cliff is aware that there are millions, if not billions of people who cannot afford a laptop and broadband. Well done! 10 internet points for you! But this blog post isn’t aimed at solving inequality. Not everything on the internet is aimed at everyone, or is a political statement!

Anyway… indie game dev does indeed have super-low barriers to entry and this should mean that nobody in that industry makes much profit, but hold on! some of them do! Jonathan Blow! Introversion! Me! The Factorio & RimWorld devs… how is this possible?

Barriers to entry can include personal ones as well, not just financial requirements. Sure, anybody can buy visual studio (my dev tool of choice, about $500), the same chair as me (aeron, about $1k) and a decent PC (maybe $1,500 tops?). They can then decide to make an indie game. This will not be profitable, as there are a LOT of people in this green segment below…

Some games are technically much easier to make a first-game in than others. Platform games come to mind, as do arcade games. If you are using unity or similar, maybe a primitive FPS. Some genres are harder. Strategy games are harder, as are RPGs, Simulation games can be really hard. By choosing one of the ‘harder’ genres, you are already putting up barriers to entry to prevent your market value being competed down. Of course your job just got harder, but thats to be expected. There are fewer people in the white segment below.

Where it gets more interesting is in leveraging barriers than cannot easily be broken down by any means. That comes down to what makes you…YOU. Leveraging that unique venn diagram of skills and interests that makes you capable of making the game that YOU can make, but its unlikely any other dev can.

In my case, studying economics at LSE, and the son of parents who were both trade union reps, someone who got taken on ‘fun trips’ to the Trades Union Congress and Labour Party conference as a child (yes really), plus an aptitude for maths and logic (and clearly being on the autism spectrum) means that my venn diagram screams MAKE COMPLEX POLITICS SIMULATIONS. There are a handful of people in the white segment below. maybe me and Brad Wardell and half a dozen others?

Now in theory, anybody could try to clone Democracy 4 and force down my profits, but in practice its hard because you have to REALLY be a politics geek to spend the time and effort to make that sort of game, and the coding challenge is sufficient that it still gives me headaches after 39 (yes really) years of doing programming. Plus I have a special super-power that allows me to be even better suited to that exact project:

I’m pretty much a centrist. Politically I’m slightly right leaning on economics and slightly left leaning on social issues, but generally speaking I’m a moderate. That means I can sit down and have a meal and a chat with a hardcore bernie sanders supporter OR a trump-supporter, and get along with both as people. That means I’m not trying to have a big political agenda with my politics game, which broadens its appeal. (I’m not going to attempt to add another circle to that diagram…)

Every extra circle you can add to your indie game dev venn diagram of uniqueness™ is going to boost the probability of you earning decent money. Of COURSE…. you still need to work hard and make a great game, and make it appeal to enough players and do the other 999 things. This system only helps you maximise the returns WHEN you have an idea, and execution that results in something people want, and buy. I still think its worth keeping in mind.

Trying to avoid the small indie valley

Whenever there are business stats released about games, I always find myself fascinated by what seems to be the huge gulf between the amount of money (and sales) the big games make, and…everybody else. Increasingly I get the impression that the mid-tier games, developed by 3-30 people, are just disappearing due to becoming financially nonviable.

In an ideal world, there would be a perfect path that led from part-time bedroom coder with a day job, right through to full-time bedroom coder, to bedroom coder with a few contractors, to smallish studio, to medium studio…to epic/activision/valve.

I don’t think this is the case these days, but I think its especially bad for the ‘small indie’. I think there is a valley between part-time indie and the BIG indie. lets call it the difference between the $10,000 budget game and the $400,000 dollar game.

At $10k budget, you are likely holding down a day job, or doing contracting part-time. You don’t bother with a website (you just use steam or the apple app-store as your exclusive store front). You likely use coder art, or free art or royalty free art, or a friend helps out. Your marketing budget is zero, you attend no shows. You use the PC you owned anyway, and the game is made in less than six months.

Image result for game developer tycoon
screenshot from gamedev tycoon

At that level, even a few sales can help you break even. Even a cheap $10 indie game *can* sell a thousand or two thousand copies without any marketing whatsoever, as long as you are skilled, you picked a decent genre, you did a good job, and you optimized your store page, did some social media marketing, and generally did the guerrilla ‘no-budget’ marketing thing in evenings and weekends.

At the mid-tier (in the valley). Things get tough. You are full-time, and have an office with 2-4 other people. You suddenly need separate work PCs because of the office, and office furniture, and need to pay rent, and office internet costs, and power, and likely some admin/insurance/employment related costs too. You now have a proper accountant charging at least $1,000 a year. You probably have a lawyer if you are American. You are now paying for webhosting, some unity subscriptions, some money each month to adobe, and to a few other bits of software that in 2020 are inexplicably subscription based.

Your 3 people now have no pension in the UK and in the US, no healthcare, so add another $1,000 a month minimum on top for that, and together with the rent blah blah, you are probably paying $2-$3,000 a month before anybody gets paid. Assuming nobody will actually starve, you can easily look at paying $150,000 a year for your people, and you need to get that back.

But hang on! a 3 person team is NOT 3x as effective as a single dev. They have discussions, disagreements, arguments, confusion. They are demotivated by implementing other peoples ideas. They are distracted by someone who slurps their coffee in the office. They want the office cooler / hotter / lighter /darker than anyone else. They are sad because their cat is no longer at work with them…

I guess a 3 person indie team is the equivalent of maybe 1.5 solo devs (at best). But they don’t cost 3x as much, they cost maybe 5x as much.

Eventually, as you scale UP and UP and UP things work out. Your 200 developer team now has 5 people working FULL TIME to make hilarious / amazing / exciting video and social media content that gets your name EVERYWHERE. Your game design and code is top notch because its got dedicated people working on everything. The number of devs who can compete with you is smaller because they simply do not have the scale or the marketing firepower. You can suddenly employ full-time professional HR and business-management experts who can actually handle people properly, so fewer arguments about heat / light / cats. Productivity has been achieved.

Image result for blizzard developers
Blizzards WoW team

I think WAY too many indies are stuck in the valley of financial impossibility. I’m not sure you can survive with a 3-5 person team any more. if you get ‘funding’ from somebody then maybe, or a grant, or some dumb hardware company has no clue and throws cash at you…yeah sure. But purely on the basis of the free-market… i’m not sure it works.

So how am I still going? (before you ask). Well I am a weird edge-case that is VERY hard to replicate. My magic powers are:

  1. Rural location so no sky-high-rent / distractions etc.
  2. Solo dev for most of career so working from home
  3. Back-catalog of pretty big hits, so cash not that much of a problem
  4. Actually earning decent money from stock trading so…see above.
  5. Age 50, child-free, 39 years coding experience, workaholic. Impossible to compete with that combo tbh..

BTW TOP TIP: people often make a critical business mistake. They look at other people doing X at a company and think ‘they are doing X it must be viable’. It often is not. That other company may be in debt/a multi-millionaires hobby/funded by a spouse/some sort of money laundering scheme. Do not think all those 3-5 person indie teams posting online are surviving. They may well be in serious trouble.

Are my numbers in this post COMPLETELY insane? let me know. Whats the running cost of your 3-5 person indie studio?