I'm looking for your feedback and perspectives on my current business model and whether I should stick with it or pivot to something else.
2.5 years in business, 6.5 years prior as a hobby
Over 5000 hours invested
Lifetime revenue $132K (zero MRR) ~55% profit
Once a game is launched, 99% of the time, you'll never make more money than in the first week of sales. It's a decaying business model, and the video game industry has been shrinking since 2021. Indie games also haven't adjusted for inflation in over 6 years, with customers complaining about $15 for 20 hours of content, and hordes of people upset by even AAA games increasing prices.
If you choose to go the game publisher route, they take 50% of the topline and are barely investing in games anymore since the COVID boom is over. Lots of indie game studios have shut down as well because of this.
This must be the least effective software business model.
I have a type A personality, I like working a lot, but god damn, I worked this hard for $25/h and zero momentum... I could have freelanced for 4x that hourly rate.
It doesn't feel like a business, even though it pays me monthly now. It feels like a glorified job, except I work longer than 9-5.
5000 hours is a lot of time for $132K and I've been making video games for 9 years now. I have no interest in playing games and couldn't care less about the industry.
What could 5000 hours in a new business yield? It also scares the crap out of me to pivot, building video games is all I've known for the past 9 years.
Thanks for reading. I look forward to your insights
Business Overview
Solo video game development business2.5 years in business, 6.5 years prior as a hobby
Over 5000 hours invested
Lifetime revenue $132K (zero MRR) ~55% profit
Ethical Concerns
I wasted my teenage years playing thousands of hours of video games until about age 20, at which point I quit altogether. I can't shake the feeling of guilt from the thousands of hours people spend playing my games. I understand that people have their own free will and choose to spend their time doing whatever they want, and maybe I'm just being a bitch, but I don't feel like I'm building something positive for the world.
Financial Concerns
I spent 3000 hours working on a single project that grossed $65K (which puts me in the top 6.4% of Steam games), only to make less than $25/h, have 30% of my topline revenue taken by platforms, and have no momentum to show for it. Steam owns the 75,000+ people who wishlisted my games, I can't market to them. I will almost certainly never be able to sell this business. This isn't like a SAAS business with MRR that could be easily sold.Once a game is launched, 99% of the time, you'll never make more money than in the first week of sales. It's a decaying business model, and the video game industry has been shrinking since 2021. Indie games also haven't adjusted for inflation in over 6 years, with customers complaining about $15 for 20 hours of content, and hordes of people upset by even AAA games increasing prices.
If you choose to go the game publisher route, they take 50% of the topline and are barely investing in games anymore since the COVID boom is over. Lots of indie game studios have shut down as well because of this.
This must be the least effective software business model.
Lifestyle Concerns
During the tail end of my recent project, I woke up hating my life. Same routine, sinking hours into development, dealing with users, posting content. I worked 100-hour weeks to get the game ready for early access in November.I have a type A personality, I like working a lot, but god damn, I worked this hard for $25/h and zero momentum... I could have freelanced for 4x that hourly rate.
It doesn't feel like a business, even though it pays me monthly now. It feels like a glorified job, except I work longer than 9-5.
What Should I Do Next?
Maybe the right move is to keep grinding on this business and try to get a hit. Or maybe continuing is just me buying into the sunk cost fallacy.5000 hours is a lot of time for $132K and I've been making video games for 9 years now. I have no interest in playing games and couldn't care less about the industry.
What could 5000 hours in a new business yield? It also scares the crap out of me to pivot, building video games is all I've known for the past 9 years.
Keeping Busy
In the meantime, I started a small tallow-based skincare brand out of my kitchen as a side project. Been using the stuff for years from the USA but couldn't find anyone in Canada making the formula I wanted. Not sure if it has Fastlane potential, but it's low risk, and something to keep me busy while I plan what my next long-term play will be. It's been great for learning new skills and practicing short-form content for marketing, but I still feel that itch to build software.Thanks for reading. I look forward to your insights
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