Understanding the video game market dynamics is important in the fast-growing gaming industry (and for indie developers in particular). How can small teams and those with less experience compete in such a roaring field? The answer is video game market research. With stats and case studies to help indie developers orientate in the gaming ecosystem, this article explains the importance of market analysis. To learn more about how venture studios will change the shape of gaming, read the previous article named: “Why Venture Studios Are Revolutionizing the Game Industry.“
The Importance of Market Research for Indie Game Development
Good market research for games enables developers to:
- Identification Trends: Note trending genres, themes, and mechanics.
- Understanding Competition: Explore what else is out there and how to be different.
- Testing the Players’ Preferences: Know what the audiences like.
A great example of this phenomenon would be the game “Stardew Valley,” which applied the knowledge discovered by game industry experts and used it to plug holes in farming simulators. Understanding the audience’s pain points, Eric Barone crafted a beloved title that generated more than $50 million in revenue by 2023. (Source: Statista)
The Growth of the Video Game Market
Over the last ten years, the video game market size has been in the exponential growth phase. In 2023, the global market was worth around $200 billion and is expected to grow to $268 billion by 2025, largely due to mobile gaming, subscription services, and tech advancements such as VR and AR. (Source: Newzoo) To see how these developments transform the industry, learn how the venture studio model is spurring innovation.
Key Figures Driving Growth
- Mobile Gaming: 51% of global revenue. (Source: Statista)
- Esports Industry: Valued at $1.8 billion, expected to be worth $2.96 billion by 2026. (Source: Fortune Business Insights)
- Platforms for Game Streaming: Gaming is getting to mainstream audiences with services like Twitch and YouTube Gaming.
- Growth by Demographic: Female gamers constitute almost 46% of the gaming market, forcing marketers to rethink their approach. (Source: Statista)
These trends show the opportunities for a small indie dev to build their niche in a growing audience. But that doesn’t mean the industry is ignoring shifting demographics and tastes; instead, they stress the importance of targeted market research.
Case Studies
Case Study: “Among Us”: The Importance of Market Research
“Among Us,” developed by the two-person studio InnerSloth, is an example of how video game industry research can pay off. Although the game came out first in 2018, it exploded in 2020 because of:
- Player Behavior Analysis: Recognizing the growing demand for social, collaborative games during the pandemic.
- Change in Strategy: Incorporating new tools to maintain members’ interest.
- Targeted Marketing: Streamers brought significant exposure.
Through its careful attention to player feedback and trends, InnerSloth transformed a niche multiplayer title into a worldwide phenomenon. As this case shows, video game market research can be a powerful tool in turning struggling titles into household names. (Source: Steam Charts)
Case Study: How “Hollow Knight” Made It Big
The simplest example of the player-centric development approach that follows proper market research can be derived from Team Cherry’s “Hollow Knight.” Through extensive interactions with fans of the Metroid Vania genre, the team:
- Spotted a Gap: For an approachable yet visually dense 2D platformer.
- Kickstarter Campaigns: Allowed the developers to test demand and build a community.
- Post-launch Updates: Based on player feedback to retain players for the long haul.
“Hollow Knight” sold over 3 million copies worldwide, consistently analyzing market trends and player needs to achieve commercial and critical success. (Source: LEVVVEL)
How to Successfully Research the Gaming Industry
Indie devs need to take a holistic approach to researching well to succeed. Here are some key methods:
Market Reports: Use industry reports provided by trusted sources like Newzoo or Statista to remain au courant with industry trends. One recurring significant highlight from market reports of late is the rise of cross-platform gaming, a path we would expect indie studios to follow.
Player Surveys: Get hands-on with gamers to see what they like and dislike. Google Forms, SurveyMonkey, and similar tools make such efforts easy and scalable. According to a 2022 survey, 76% of players value gameplay innovation over graphical fidelity. (Source: ESA)
Competitive Analysis: Check out games with similar concepts and evaluate their pros, cons, and the market holes you can fill. Websites such as SteamSpy and GameDataCrunch provide detailed metrics on player activity and estimate revenue.
Analysis Game Market: Tools and Techniques
Advanced tools support developers in polishing their research:
- Google Trends: Search That Answers Your Question.
- Social Media Trends: Twitter and Reddit can highlight topics that are starting to become popular.
- Steam Charts: Tracking PC game activity.
- Sensor Tower: Track mobile games’ performance statistics, such as downloads and in-app purchases.
Practical Example:
Book of Demons developer, a roguelike team, used Steam Spy to track peak hours in competing titles and timed releases strategically. Similarly, Reddit forums shared players’ frustrations with other developers’ mechanics, leading to more engaging features in their titles.
Market Research in the Gaming Industry: Best Practices
Define Clear Objectives: Set specific goals, whether that’s figuring out a target audience or evaluating monetization models. For instance, a studio specializing in puzzle games might concentrate on mobile gaming demographic analysis.
Integrate Qualitative and Quantitative Research: Combine numerical statistics and open-ended feedback for comprehensive insights. Quantitative approaches (e.g., surveys) yield surface-level trends, and qualitative insights (e.g., focus groups) add texture.
Engage with Communities: Platforms like Discord and Twitch provide a direct line into what players think. Developers can set up their channels to collect feedback and build a loyal community.
Iterate Continuously: Market research is not a one-time affair. Staying aligned — Regular updates mean that developers keep pace with changing trends. For example, the rising trend of VR gaming requires constant investment in understanding how players will behave.
The Paradox of Indie Development: The Crucial Need for Market Research
And without video game market research, even the most revolutionary ideas can fall flat. Take “No Man’s Sky” as an example: the game promised rich, expansive exploration, but oops, its launch was disconnected from player expectations. This highlights the need for strong market analysis to help manage audience perceptions.
Similarly, titles like “Cuphead” found success by thoroughly researching vintage gaming aesthetics and punishing play, satisfying a nostalgic but neglecting-to-carve-out-a-niche group of players.
Conclusion
The booming video game industry makes good market research a powerful ally for indie developers. By following trends, connecting with players, and harvesting data, developers can write a grand game that will surpass the stressful gaming world. From grasping the video game market size to following industry best practices for analysis, it all boils down to preparation and adaptation for success.
What’s your take? Let us know why you think market research is important for indie games.
Q&A
The brown-colored ones that do print into the game market?
Analyzing trends with Google Trends, Steam Charts, and other social media channels can give you an idea about what is in demand or what players are up to.
What does video game market size have to do with indie game development?
As the market size continues to grow, indie devs can find new areas to focus on and jump on trends before bigger companies do.
Sources:
Stardew Valley’s Success, Global Video Game Market Size, Among Us Popularity in 2020, Player Preferences Survey 2022, Hollow Knight Sales Figures
