Indie Game Industry Faces Challenges in 2023: Devolver Digital’s Struggles and Future Outlook

The Brutal Landing: Industry Setbacks in 2023

After a period of highs since 2020, the indie game industry has taken a harsh blow this year. Games companies across the board are downsizing, laying off staff, and even shutting down. Despite rising game sales, the overall sentiment in the industry is tough.

Indie Giants Face Disappointment

Not even established indie companies have been spared from the challenges. Devolver Digital, a prominent indie label, experienced a plummeting stock price throughout the year and had to push back several releases originally planned for 2023. The company went public in November 2021 and has faced a challenging couple of years since.

First Experience of Disappointment

Speaking about the setbacks, Devolver’s COO and co-founder, Graeme Struthers, acknowledges that they did not anticipate the seismic impact of Elden Ring and how it would dominate the market, affecting their own projects and numerous others. This marked the company’s first experience of disappointment in their journey.

Still, a “Banner Year” for Devolver

Despite the challenges, 2022 turned out to be a successful year for Devolver. Struthers emphasizes the commercial and critical successes of games like Inscryption, Cult of the Lamb, Loop Hero, and Death’s Door. However, he acknowledges that these successes are overshadowed by the perception of the industry facing a downturn.

Persistence and Belief in the Future

Struthers remains optimistic about Devolver’s future, highlighting the strong demand for games like Inscryption and Cult of the Lamb. He reveals that the company has more indie darlings in the pipeline, even though a significant portion of their planned releases for 2023 has been moved to 2024. The decision to delay releases was made to ensure the highest quality and long-term success of the games.

Consolidation Trend and Impact

Devolver Digital has also had to navigate the consolidation trend in the industry. Struthers mentions instances where developers they worked with were acquired by larger companies, impacting their business. While Devolver has also made acquisitions of its own, Struthers expresses concern over the narrowing pool of potential partners due to ongoing consolidation.

Going Public: A Transformative Move

The consolidation trend played a significant role in Devolver’s decision to go public. Struthers admits that selling the company was a nerve-wracking prospect as it would potentially tie developers they work with to a new parent company. Exploring venture capital was also considered but ultimately abandoned due to negative connotations. Going public seemed to provide the best opportunities for Devolver’s future growth and the ability to bring more studios under their umbrella.

Outlook for 2024

Despite the challenges, Devolver Digital remains focused on their mission: publishing video games. With a lineup of highly anticipated titles set for release in 2024, including Stick It To The Stickman, Pepper Grinder, and The Plucky Squire, Devolver is confident in their ability to weather the current market conditions and continue delivering outstanding games.

Conclusion

The indie game industry faces significant challenges in 2023, with Devolver Digital experiencing setbacks and delays to their planned releases. However, the company remains optimistic about their future and believes in the long-term success of their games. Despite the industry’s overall downturn, the demand for indie titles like Inscryption and Cult of the Lamb remains strong. Devolver is committed to delivering high-quality games and adapting to the evolving landscape of the industry.

Maintaining Devolver’s Spirit during Challenging Times