4 Years of Hard Work for Only 48 Yuan: Are Indie Games Priced Too Low?

The Current State of Indie Game Pricing: The Case of Stardew Valley

Eric Barone, the developer of Stardew Valley, spent four years of hard work, teaching himself programming, redrawing artwork, writing dialogue, and designing the farm simulation system. During these four years, he worked 10 hours a day, barely making ends meet with a part-time job as a theater usher and his girlfriend's student aid. Ultimately, Stardew Valley was released at a price of $15 (48 yuan in the Chinese region).

Although the game has sold 3 million copies to date, few indie games can replicate this success. In fact, Stardew Valley's price is considered "expensive" among Steam indie games, almost double the average price of similar games.

The Average Performance of Indie Games on the Steam Platform

According to data from Sergey Galyonkin, founder of Steamspy, the average price of indie games on Steam is about $8.72, while the average sales are only 21,000 copies. This average is significantly inflated by a few bestsellers. More critically, many games are not sold at full price, with the average discounted price being only $4.63.

Galyonkin believes that the current pricing level makes it difficult for many indie developers to sustain their work. He suggests that developers should leverage the advantages of high-quality games and set higher prices based on creativity and quality. He argues: "If a game is worth the player's time, it is also worth their money."

How Developers Decide on Game Pricing

When Tom Francis, the developer of Gunpoint, released his first game in 2013, he considered making it free. However, after seeking reader opinions, he ultimately priced it at $10. He hoped the price would match a 3-hour playtime and make players feel they got more than their money's worth. However, this low price also reflected, to some extent, the developer's uncertainty about the game's appeal.

When developing his second game, Heat Signature, Francis began thinking about pricing two years in advance. He compared three price points: $10, $15, and $20, believing this game offered more value than his previous one because players could invest more playtime. Through surveys with test players, he finally set the price at $15, which aligned with his expected game value and was accepted by potential consumers.

Rising Development Costs and Risks

Although a $15 price tag is not low among indie games, development costs still put immense pressure on developers. The development cost of Heat Signature was approximately $260,000, covering art, programming, and music. If sales only reached the average (21,000 copies), after Steam's commission, the developer would face a loss. Although the game succeeded due to its quality and fan base, this highlights the pricing risks developers face.

Publisher Raw Fury points out that when determining a price, factors such as production costs, market competition, target audience, and feedback from sales partners must be considered. Currently, the number of games on Steam is surging, with many titles adopting low-price competition strategies. However, with rising production costs like salaries, office rent, and software/hardware, this strategy is not beneficial for the industry's development. To save budgets, developers at some indie game companies even go months without a salary.

Attempts at High-Pricing Strategies

The Witness was released in 2016 at a price of $40, and even when discounted, it never went below $20. Lead developer Jonathan Blow believed that, considering the game's length and complexity, it was worth the price. He noted that a higher price could offset the risk associated with niche, high-quality games having a smaller audience. If a game targets a specific group, lowering the price may not attract more players but could instead lose support from core fans. Ultimately, The Witness exceeded sales expectations, proving the feasibility of a high-pricing strategy in certain situations.

An Economic Perspective: Value-Based Pricing

Economist Mark Bergan believes that small developers often undervalue their products. Many developers are accustomed to pricing based on development costs, but he recommends adopting "Value-based pricing," which means setting the price entirely based on the value perceived by consumers. This strategy is often used by well-known brands, but it's more difficult for indie developers lacking fame, as they must convince players of their game's uniqueness.

Furthermore, developers can adopt other pricing strategies:

• Multi-Version Sales: Release a standard edition and a "supporter edition" (including soundtrack, artbook, etc.). For example, the supporter edition of Heat Signature was priced at double the standard edition and contributed to 20% of the revenue in the initial release period.
• Behavioral Pricing Strategy: Use a relatively high price (e.g., $30) to signal high quality to players.
• Goldilocks Pricing: Offer three versions at high, medium, and low price points to guide consumers towards the middle option.
• Comparative Pricing: Compare the work to a well-known, similar blockbuster, using "20% cheaper than [Blockbuster Game]" as a selling point.

The Battle Between Time and Money

In the current gaming market, the resource players are most scarce in is often not money, but time. Faced with a backlog of games, players consider whether they have time to play a new game before purchasing. This phenomenon is similar to "superstar economics": the market is winner-takes-all, with top titles attracting the vast majority of attention and time.

If indie game prices continue to fall, developers will be unable to sustain their creative work. In the long run, if creative developers are forced to leave the industry due to an inability to survive, it would be a significant loss for both the gaming industry and the player community.