In a recent discussion about current issues in the gaming industry, MMORPG veterans Raf Koster and Ralph Barbagallo addressed one of the most pressing issues in the modern marketplace – the overall dominance of digital platform giants. Developers say that while the emergence of new platforms – from Flash games to early MMOs to mobile books – previously provided independent creators with opportunities to stand out from large publishers, today ecosystems like Steam have become closed “meta-consoles.”
Experts say the industry’s main problems are vertical integration and monopolization of distribution channels. While Valve and its management, headed by Gabe Newell, remain loyal and open to content creators, reliance on a single key player poses serious risks to the entire ecosystem: developers lose all bargaining power and don’t own their own customer base.
The author focuses specifically on the scary mathematics of the modern independent market. Every year, tens of thousands of projects are released on Steam alone, but after deducting all commissions (including 30% of the platform) and taxes, the financial performance of most teams is lower than the profitability of the service industry. Successful cult projects, e.g. Stardew Valley or Terraria Experts say this is not a systemic norm but “winning the lottery” and stress that about 80% of independent studios only release one game and then close it due to their inability to build stable audience loyalty.