The indie scene on consoles is crap. The developers get much much much less revenue compared to PC. For an indie game to be put on the XBLA or PSN Store, you are going to need a publisher. Publisher takes a good chunk of the revenue.
Then when the game is on digital store, Microsoft and Sony take another chunk of each sale. They also require payment if the developer wants to keep supporting the game.
The developer gets a crap share of the overall sales compared to something like iOS or PC Digital.
What incentive does this system give? It make developers leave the console market or start milking a series.Why should I spend 40k per patch on supporting a game, when I can abandon the game and use that money on the next game, which I will also abandon shortly after release?
ShadowDeathX
The incentive is you get guaranteed exposure. It's easy to point to the successful games on iOS and PC and say "look at how big a rip-off the consoles are!!!", but that fails to account for the vast quantity of indie games that wallow in obscurity. The App Store is such a discoverability clusterf*ck that if you don't launch on the top-sellers list you're f*cked. There are countless games on Steam that struggle to break even (never mind the games that don't get on Steam at all). HumbleBundle and the like are fully curated and as such focus almost entirely on established developers, so it's not like you can count on them as an upstart.
So as byzantine as XBLA's policies are, the fact that even a game like Fez (near-vapourware, not exactly "wow-factor" gameplay) can evidently make a good chunk of change speaks for itself.
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