Opinion piece: The small Aussie Indies.
13 May 2010 | designerwatts |
The following blog is an opinion piece. It represents only the personal opinions of its writer. It doesn’t represent any businesses or other individuals.
A few articles are circulating at the moment about the state of the Australian games industry. Most of them well written and helping everyone get up to speed with what’s been happening. You can read a short but well written article here on the subject: http://au.xbox360.ign.com/articles/108/1088951p1.html
I want to personally talk about the smallest of the small. The Indies in Australia who are working in teams of 1-5 people to create some fun games. These start-ups are much like my own are working hard to understand the business and nature of this era of downloadable digital gaming.
Since the start of this year I’ve come to form a few opinions on subjects related to small Indies. Here are my thoughts on what small Indies can do right now and how they will fare in the next few years.
Small Indies should seek small business support
I’ve just completed a short small business course with NEIS and I couldn’t stress enough that anyone who’s thinking of or already just started an indie studio should look into this course. I found it well worth the 6 weeks of my time. It does require a number of conditions to apply though:
- Applicant needs to be on newstart allowance through Centrelink prior to applying.
- They must be over 18 years of age.
- The business can’t exist before taking on the course. So no prior ACN or registered business names for the business pitched.
It’s not easy to get into. But having the help to write out a consistent business plan and receive some fortnightly payment assistance can mean all the difference in the first year of your business. I know that if wasn’t going through NEIS had to continue relying on Centrelink payments that I would have to start dividing my efforts between my business and finding an alternative source of income. My NEIS payments allow me to focus 100% of my time to my business.
There is also talk of small business support through some of the local industry associations. Although we’ll have to wait to see that materialised before it can be explored further.
Business and Pleasure – Meet it half-way
By this title I don’t mean that a start-up should go straight to work-for-hire. I do believe that Indies of a small size should focus efforts on their own intellectual property projects. But these projects need to have a number of sensible business questions considered against them, such as:
- SWOT analysis. Is the project viable to produce by the studio to a reasonable time and quality?
- Target Market and marketing plan: Who are your audience? How will you tell them of your game? Why will they buy it?
- Profitability: Given the platform and genre of game your making, how many sales or transactions can be expected to be made? Will it cover the cost of development and advertising?
- Monetisation Plan: In what ways will the game make money? A one-off purchase? In-game cash shop? Subscription?
Speaking from experience over the last year of working on my own projects I admit that I’m guilty of not considering these important business questions before starting on a project. I know that it’s quite easy to get wrapped up in a project you really want to create without considering if it can even be made to sell.
My advice to other small Indies is taking a half-way point in deciding what your project should be. The project should be something the team is excited to develop. But it needs a proven audience and business plan as well.
Government funding just got harder
The government announced a week ago that it’s halving the funding given to Film Victoria for games related funding. This will last for 2 years.
In my opinion, what this will mean for small Indies is that funding will become even more competitive and harder to obtain. The funding committee will more than ever scrutinise every element of an application, from not only the proposed projects business plan but to the experience of the team and the studios prior history. My concern as a starting indie business is that this will effectively cut all applications from studios like my own that have yet to produce a highly commercially successful product.
I know if I was in-charge of funding with only $1,000,000 to distribute over 2 years amongst dozens of applications and tens of millions of dollars in funding requests, I would be investing my money into established studios with a proven level of reliability and not unproven start-ups.
From a start-up business perspective it means that we can’t count on external funding to pitch and develop projects that would otherwise be unviable under our own support. It means that as small Indies we may need to create a few smaller money-maker successes before we can focus on the type of projects that the studio may want to pursue as part of its original goals and ideals. There’s nothing wrong with this outcome but it does tighten the options available to us.
Funding is something we can never truly take for granted. I’m happy that it still exists and Film Victoria as an entity are nothing but supportive.
Overall though this opinion is formed from my pessimism and paranoia. It could well be the case that the dynamics that these funding bodies operate and judge projects will not change in the slightest.
Facebook and iPhone
Facebook and iPhone are huge markets with a small barrier of entry. It also means that these markets are extremely satiated and hit driven.
For small Indies the opportunities arise from the low financial barrier of entry. The threat of course is that everyone else is doing it. The game you create must take in all the most popular qualities of the most popular games of the genre and work with that to create a product that’s both unique enough to get media coverage but simple and familiar enough to be associated with other successful projects.
Again, the business viability of the project must be considered. Flukes rarely occur on these marketplaces anymore. Unless they where engineered beforehand to do so. If you make an iPhone or Facebook game without a solid marketing plan then you’re a fool!
Getting on Steam
Steam remains to be the target for a few indie developers including myself. Steam has most definitely opened itself up to Indies and smaller games over the first half of this year. But it’s my belief that you must have a product near completion and playable before you even approach steam for distribution.
It’s most definitely a case of the developer needing the product to reach a level of completeness and market awareness before steam is approached. Otherwise you’re simply wasting their time.
Steam based products are also larger in production values then your typical iPhone game. So some form of funding will be needed to make a typical steam game.
Indie progress for the next 2 years
We are seeing more indie start-ups than ever before due in most part to new low barriers of entry via the downloadable market.
Here’s my prediction on how these start-ups, including my own will probably fare:
Many small indie studios have and will continue to crop up. Out of them many will fail over the first 12-24 months due to lack of funding, lack of profit due to financially unsuccessful projects or a disbanding of the team.
However, a number of these studios will survive the first few years of operation. The games they will produce will be polished and have some business considerations attached to their conception.
Some studios will intentionally stay small while others will slowly grow to take on bigger and more sizable projects. Both will create reputations of being able to deliver original quality products.
If Indies continue to learn and evolve from each product they create and learn from their mistakes then success is a matter of persistence. Our small size and low cost of production allow us to survive the mistakes we make in ways larger companies can’t. If we continue to trade away an immediate stable job for a gamble on a fulfilling business then we just might give Australia a new set of indie studios able to employ staff. Taking on mid-sized projects like steam based multiplayer games and ultimately be a part in re-branding Australia’s reputation as a development house that focuses on small to medium sized quality games.
I think that’s worth working towards.


