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Weaker subscription deals have hit indie publishers, says analyst | GamesIndustry.biz (www.gamesindustry.biz)

submitted 1 year ago by [email protected] to c/[email protected]

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Smaller subscription deals and the underperformance of certain titles have had a severe impact on Devolver and TinyBuild, says stockbroking firm Goodbody.

Both companies floated at the peak of the games business in 2021 and have seen their share prices plummet over the past two years. Devolver has seen its share price drop 92% since its peak in January 2022, while TinyBuild's has fallen 95%

"We have seen from Devolver and TinyBuild that subscription is under pressure at the moment," says Patrick O'Donnell, technology and video gaming analyst at Goodbody.

"The cheques coming from Sony and Microsoft are just not as big as they were. And that creates problems if you're concentrated on that side of the market.

"TinyBuild, of all of them, was most exposed. Devolver was exposed, but not quite as much."

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[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

A lot of gaming sites asked developers whose games were on GamePass what they thought of it, and the answer was predictable. Like, nobody is going to ill talk the provider of the service their game is on.

Other developers didn't speak ill of it because of the fear of burning bridges, I suppose.

The Game Bakers (Furi, Haven) talked about their difficult relationship with GP on Vice (LINK).

“Game Pass is such a fantastic platform for players,” said Leprince, “so there are possibly more Xbox players than ever interested in indie games. Unfortunately, without Game Pass, it is also very hard for many indie games to be visible on Xbox.”

Basically, the problem with a subscription service such as GP is that it cannibalizes other games' sales outside the service itself. And since you are not guaranteed to land on GP, developing a game Xbox may be more of a gamble than it is on other platforms. I fear this may become the norm as more subscription services are rolled out and start encroaching the market.

There's also the problem with founding. Furi sold 78% of its copies through PS+, yet only one third of its budget was paid by Sony for the deal. Developers have to decide whether they need less money immediately, or potentially more money down the line; but for indie developers, sometimes there is no choice: they either accept the deal, or shut down because they don't have the founding to complete their next game.

I really like the Vice article I linked because it's one of the very few who tried to analyze the situation impartially, with data backing it up. Most of the other industry journalists at the time were like "GP is the future! Gamers spend less and everyone gains more money!!1!", parroting Spencer's bullshit.