Determining the Optimal Price for Your Indie Game

In the ever-changing game market, indie developers often struggle to determine the ideal price for their games. Without the resources of a larger publisher, it can be challenging to gauge the value of your game. Lewis Denby, founder of Game If You Are, addressed this issue at Develop:Brighton 2022, providing guidance on pricing, competitor research, and revenue estimation. In the AAA sector, there is a established process for determining game prices. However, this is not the case for indie developers, who often wonder if price matters or if they are overthinking it. Denby emphasizes that price is crucial for two primary reasons: it influences purchasing decisions and communicates value to the audience. When deciding on a price, developers must consider the potential return on investment. While profit may not be the primary goal, it is essential to factor in the costs of releasing the game, including storefront cuts and taxes. The difference between £10 and £20 can significantly impact profitability. To determine the ideal price point, Denby recommends researching competitors on Steam, using user tags to filter games by genre, theme, or attributes. This method involves collecting data on competitor revenue, estimating sales based on user reviews, and filtering the data to identify similar games. By analyzing this data, developers can estimate their own revenue at different price points. When filtering through Steam tags, it is essential to select specific keywords that accurately represent your game. This will help narrow down the dataset to 50-200 games, providing a more accurate representation of the market. Games older than three years or younger than six months should be excluded, as they may not accurately reflect current market trends. Once the data is collected, developers can use formulas to estimate revenue based on price points and user reviews. Denby notes that this method is not perfect, as it does not account for free-to-play games or other costs. However, it provides a useful starting point for making informed decisions. Developers must also consider the quality of their game and how it will perform in the market. By applying guesswork to sales and revenue estimates, developers can refine their pricing strategy. Denby emphasizes the importance of using median revenue estimates, rather than averages, to account for anomalies in the data. While data analysis can be helpful, it is essential to remember that data is not infallible. Denby cautions against over-interpreting results and highlights the importance of considering the context and potential opportunities or risks. By combining data analysis with careful consideration, indie developers can make informed decisions about pricing and revenue estimation, ultimately leading to a more successful game launch.