How Much Does Indie Game Development Cost in 2024?

1. Experience

Indie game development is a tradeoff between time and cost. With a significant portion of the industry (According to the Survey by GDC’s 2024 State of the Game Industry, 32% of developers in 2023 reported working for indie studios), it’s no surprise that hands-on experience is becoming increasingly valuable. Hands-on experience with game development tools, engines, and cutting-edge technology will be a great advantage when developing your own game.

This will help save much game development time, expedite the development, and reduce expenses. However, if you do not have prior experience in game development, you might need additional time to understand the game development process.

2. Art and design

Not having experience in game art may require you to hire a skilled game artist, which will add to the development cost. But if you want to create the whole game by yourself, you must learn the necessary skills, which cost money and time.

3. Type of Game

Indie games are primarily divided into small-scale, mid-scale, and high-end. The indie game type bears a huge impact on the game development cost.

Small-scale indie games

Most of the small-scale indie games are developed by one or two developers. They have a relatively low budget compared to other games and are mostly self-funded. These games use simpler graphics and focus on unique gameplay mechanics.

Mid-scale indie games

Mid-scale indie games are developed by a few developers and have slightly polished graphics, deeper gameplay mechanics, and potentially longer development cycles. They require a more detailed budget, which usually comes through crowdfunding or other similar funds.

High-end indie games

High-end indie games have impressive graphics, a captivating environment, complex mechanics, and innovative gameplay. Developing them will cost more time, money, innovative technology, and human resources.

For a game with such a huge budget, an indie game developer has to look for other game funding sources, such as project and VC funding. Also, in some countries, the government offers indie game development funding through grants or tax relief, which is a viable option.

Additionally, the game development cost of indie mobile games can vary for PC and console platforms, as they have different OS, software, and hardware configurations.

4. Marketing

Most indie game developers do not include marketing costs in their game budgets. However, it is an important investment that they must make to reach a wider audience.

According to some experts, nearly 25% to 50% of the total game budget is spent on marketing and promotional activities in many popular games. Although every game doesn’t need to spend that much, frequent marketing campaigns can help drive people to your game.

5. Hardware, Localization, And Other Hidden Expenses

Below are some obvious hidden costs in game development.

Hardware

Indie game developers sometimes underestimate the hardware cost requirements. Dev tools, high-end computers, and devices for game testing are necessary hardware for game production and testing.

Localization

Localization is an important process that helps the game engage with players in varied locations. It can be best done by hiring an experienced professional because not doing it right might ruin the entire gameplay experience.

QA and testing

Quality Assurance and testing should be an iterative process where you test the game multiple times on various devices and gaming platforms to ensure its performance and functionality. You must release the game with proper testing to prevent errors and technical problems during the gameplay.

Cross-platform integration and game porting

Cross-platform integration and game porting help you to reach a broader audience base.

For instance, Android and iOS are the most popular mobile platforms, and their app stores contain millions of games. Through cross-platform integration, your game will be simultaneously available for Android and iOS players, uniformly reaching both audiences.

By outsourcing a game porting service, you can port your games from PC to mobile devices, from mobile to consoles, or vice versa. This helps you reach a wider audience and increases your revenue.

Platform charges

Gaming platforms charge nearly 10% to 30% of the total profit made. For example, PlayStation, Xbox, and Steam platforms take a 30% cut from the game’s sales on their platform. These costs vary between platforms.

Additionally, some game distribution platforms charge registration fees. Platforms like Google Play Store, Apple Store, and Steam have a small registration fee that you need to pay before using their distribution services.

6. Game Insurance

Game insurance is an important expense that an indie game development company may not consider. There are many types of insurance plans such as general liability, cyber security, employee insurance, errors and omissions, public and product liability, and others.

For instance, even if you hire two employees, you need employee insurance as you pay them salary. This might come in handy if they quit or have any other issues.

You can get this insurance directly or hire an insurance broker. But remember to set these insurances right to prevent future repercussions.

7. Post-launch support

Ongoing development efforts focus on fixing bugs, adding new content, and enhancing game features. This continuous investment is necessary to ensure the game remains engaging and functional for players. Regular updates and patches help to address any issues players encounter, introduce new features to keep the game fresh and respond to community feedback.

Providing effective customer support is another essential aspect of post-launch support. This involves managing player inquiries, addressing technical issues, and engaging with the community to foster a positive gaming experience.

They are called hidden costs for a reason. As these costs are not very huge, you may ignore them during your indie game budget planning. In some instances, you might not even notice them until you have to deal with them.

The COO of Bithell Games, Alexander Sliwinski, asks to set aside 20% to 30% percent of your game development budget to tackle unforeseen expenses because you cannot avoid them. You can do a few things to handle the hidden costs of a game.

1. Plan the game development process.

Comprehensive planning at the outset can help identify potential pitfalls and allocate resources efficiently. Game developers can anticipate costs and avoid surprises by mapping out each development phase, from pre-production to post-launch support.

This includes detailing the game’s scope, setting realistic timelines, and budgeting for each component, ensuring a structured approach that minimizes unforeseen expenses.

2. Follow agile methodology

Implementing an agile methodology allows for iterative development, enabling teams to adapt to changes and address issues as they arise. This approach involves regular sprints and reviews, ensuring the project stays on track and within budget.

Agile practices promote flexibility, allowing teams to pivot quickly in response to new challenges or opportunities. This prevents cost overruns and ensures that development goals are met efficiently.

3. Plan for unexpected external costs

It’s essential to anticipate and budget for external costs that might not be immediately apparent. This includes legal licenses, which can vary based on the game’s content and target markets, and marketing expenses, which are crucial for the game’s success.

Allocating a contingency fund for such unexpected costs ensures the project can handle these expenses without derailing the overall budget. Legal compliance and effective marketing strategies are vital for the game’s launch and long-term success.

4. Ensure efficient human resource management

Efficiently managing the development team can significantly reduce hidden costs. This involves hiring the right talent, ensuring they are adequately trained, and maintaining a productive working environment. Efficient HR practices include clear communication, regular feedback, and providing the necessary tools and resources to the team.

Below are some useful tips to reduce the game development cost for your indie team.

• Have a clear financial plan: Knowing your budget upfront and creating a financial plan allows you to make informed decisions about resource allocation and potential funding needs.
• Choose the right framework: Game development frameworks (like Unity or Unreal Engine) provide the foundation for building your game. Choosing the proper framework depends on your game’s genre, complexity, and your team’s skill set can avoid unnecessary expenses. Consider factors like ease of use, feature set, and community support.
• Prefer open-source software: Traditional game development tools can be expensive, especially for professional licenses. Open-source alternatives like Unity (with limitations) and Godot offer powerful features for free, significantly reducing your software budget.
• Implement revenue-share models with freelancers: Hiring full-time staff for specific tasks like art or music can be costly. Revenue-share models allow you to collaborate with freelancers who get paid a percentage of your game’s profits. Doing this initially keeps costs down.
• Utilize grassroots marketing: Traditional marketing campaigns like TV ads or billboards are expensive for indie studios. Use social media platforms, online communities, and content creation (like trailers and gameplay demos) to generate buzz organically. This is a more cost-effective way to reach potential players.
• Reduce development time through effective management: The longer the development process, the more resources (time, money) are consumed. Effective project management tools and clear communication within your team can help streamline the development process. Prioritize features, set realistic deadlines, and track progress to avoid scope creep and wasted time.
• Prototype, then scale: As an indie developer, you are likely to have limited resources. Starting with a smaller, more manageable game allows you to gain experience and build a portfolio. Once you’ve established yourself, you can leverage that success to tackle more ambitious projects.