Exploring Challenges Faced by Independent Game Developers in Securing Funding and Contracts
The gaming industry is currently facing turbulent times, with independent game developers encountering obstacles in securing lucrative financial contracts with major online platforms such as Epic Store and the Xbox Game Pass subscription from Microsoft. Companies in the game development sector are currently prioritizing capital growth, leading to potential setbacks for budding indie developers.
Previously, independent developers had the opportunity to strike deals with the Epic Store to receive financial support for their projects or to enhance their market visibility. However, recent reports indicate a shift in this landscape. An interview conducted by PC Gamer with prominent independent developers, including Casem Yan from Mega Crit, the team behind “Slay the Spire,” and Chris Bourassa from Red Hook Studios, the creator of “Darkest Dungeon,” sheds light on the challenges faced by indie developers.
Casem Yan revealed that during the Game Developers Conference (GDC), he engaged with at least five small development teams comprising a maximum of 35 individuals who expressed concerns about budget cuts, funding cancellations, and prolonged negotiation processes, some lasting up to a year. Epic Store offered minimal guarantees for its exclusive titles. The constraints on these contracts are understandable given that Epic Store has yet to turn a profit, with projected total losses estimated to exceed $700 million by the end of 2023, depending on Epic’s business model.
Details regarding contracts with Microsoft’s Game Pass subscription service are closely guarded. However, insights from the Federal Trade Commission (FTC) lawsuit against Microsoft have revealed certain aspects. For instance, game developers may receive bonuses based on the level of engagement of Game Pass subscribers with their titles. Microsoft ties performance metrics to additional payouts when a game is added to the service. While Game Pass has surpassed 34 million subscribers, it is important to note that this figure includes former Xbox LIVE subscribers reclassified as Game Pass subscribers after the rebranding of Xbox LIVE to Xbox Game Pass Core.
Both Epic Store and Microsoft are undergoing staff layoffs while striving to fund new projects and maintain their online stores. This situation poses a potential threat to incentive programs for independent game developers or, at the very least, may restrict their accessibility. The gaming market landscape remains challenging for both major corporations and indie developers seeking financial support and exclusive contracts amid prevailing uncertainties and difficulties.
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**FAQ**
**1. What are indie developers?**
Indie developers, short for independent developers, are individuals or small teams that create and publish games without the financial and logistical support of major video game companies.
**2. What is an exclusivity contract in gaming?**
An exclusivity contract in gaming refers to a legal agreement between a game developer and a platform holder, wherein the game is made exclusively available on that particular platform for a specified period, restricting its release on other platforms.
**3. How does the Xbox Game Pass subscription work?**
Xbox Game Pass is a subscription service offered by Microsoft that provides access to a library of games for a monthly fee. Subscribers can download and play games from the library as long as they maintain an active subscription.
**4. What is the Epic Store in the gaming industry?**
The Epic Store is a digital distribution platform for video games developed by Epic Games, known for titles such as Fortnite. It offers developers a more favorable revenue split compared to other platforms like Steam.
(Source: PC Gamer)
The source of the article is from the blog newyorkpostgazette.com