What does “indie” mean

After briefly addressing some technical, practical, and legal issues, let’s dive into the core topic. If you’re reading this, you’re probably an “indie” developer, as we’ve come to call ourselves for some time, unless you work for a large multinational company. Perhaps, like me, you are simply a hobbyist who, armed with nothing more than a personal computer, a lot of goodwill, and stolen moments from life, is trying to create something that could be called a “video game.” Well, I have bad news: the world is against you. Here’s why.

Let’s begin with the definition. The term “indie” has, over time, become practically meaningless. Initially, it referred to entities that didn’t rely on large capital or big-name publishers, which allowed them to express their creativity freely, without constraints. However, in the present day, for some strange reason, we continue to refer to studios as “indie,” even if they started small but, through merit or luck, grew significantly and now generate considerable revenue, becoming, in effect, medium or large companies. Despite this, they are still labeled “indie,” much like the youngest sibling who remains “the little one” throughout their life. One might even argue, with some truth, that all companies born after the 1990s are “indie,” meaning all those that didn’t exist at the dawn of the gaming industry.

Naturally, someone has attempted to classify the various entities in this realm to bring some order to the chaos. After researching here and there, I’ve compiled a classification that summarizes what I found.

Micro-Indie

This category consists of hobbyists or very small teams made up of just a few people who self-fund. In my opinion, this is the only category, along with the next, that should still carry the “indie” label. This is the group I created this editorial for, hoping it can be of help. These developers make up a substantial portion of the gaming market, accounting for over 50% of online store presence, particularly on Steam, from which most of the data originates. These developers still embody the most romantic notion of the “cursed artist”—the creator who dedicates themselves passionately to their work, no matter the cost. Unfortunately, they also have the lowest earnings, often selling fewer than 300 copies, sometimes not even reaching 100. They typically rely on “impulse buying,” releasing games at very low prices, around $5 or even less. Many of them, after spending months or even years working on a game, may be tempted to set a price as high as $30, only to end up selling just as poorly as with the lower price… It’s easy to see that selling 300 copies at $1 brings in the same amount as selling 10 copies at $30.

Classic Indie

I believe this category still qualifies as “indie,” though it involves developers willing to take more risks compared to micro-indies. Calling them hobbyists is a stretch, but labeling them as professionals is equally misleading. These are small startups or newly established studios that manage to raise some funds, either through self-funding or crowdfunding, often investing in resources and marketing. As a result, they typically earn around $10,000 in revenue. While this amount is not enough to define the business as successful, it allows these small studios to gain recognition and, hopefully, secure further opportunities for growth. Sadly, many in this category, as well as those in the micro-indie group, publish only one game before retreating. An income of $10,000 is extremely low in many Western contexts—less than what a minimum-wage worker earns in many countries. However, in less affluent nations, this income could be seen as sufficient to sustain the business.

Premium Indie (or Indie AA)

Here we start deluding ourselves. In my opinion, these studios are “indie” only in name. They are independent in the sense that any business is independent—like the pizzeria down the street. However, these are well-funded operations with capable staff and a team that can manage multiple projects simultaneously, generating annual revenues exceeding $50,000 per video game. They are not giants like Microsoft or Ubisoft, but they are legitimate companies that are not struggling to stay afloat. Many of these companies also operate in other areas, such as designing and managing invoicing programs, all under the same entity. These are businesses that are far from struggling, though they may not be generating millions.

Indie Supported by Publishers

In this case, the studio is similar to the previous one, but opts for the help of a publisher—an entity that takes care of marketing and may also provide full or partial funding for the project. It’s like saying, “you provide the expertise, and I’ll provide the funds.” Naturally, a reputable publisher won’t invest in a studio that can’t provide solid guarantees, and it’s equally clear that studios will seek to work with publishers that can lead them to the heights of the gaming world. This partnership results in works that can earn millions of dollars, and with unity comes strength. This model can effectively compete with AAA entities without too much difficulty. The difference lies in the fact that, rather than a single corporate giant, we’re talking about an alliance between multiple studios, each contributing to the collaboration.

Conclusions

When I said that “the world is against you,” I meant that if you are reading this, you’re most likely part of the first category, the micro-indie, which, as you may have realized, doesn’t offer much hope. However, success stories do exist, even within the micro-indie group, and we’ll discuss them later. As for the diminishing significance of the term “indie,” it’s clear that, aside from multinational companies, anyone—from a small hobbyist to a successful studio—can call themselves “indie.” So, “indie” has become a meaningless term. At best, it can simply mean that you’re not part of a multinational.

See also:

Top image by Vilius Kukanauskas from Pixabay