The indie scene appears to be facing a significant crisis after a stock market report revealed that two of its major publishers, Devolver Digital and TinyBuild, are experiencing a financial downturn that has caused their stock prices to plummet. Apparently, the issue came as a surprise to many, as it is related to the business model of subscription services. A Larian Studios executive spoke about it.
Larian Executive Responds to Devolver Digital and TinyBuild's Decline
The report that unveiled the harsh situation faced by Devolver Digital and TinyBuild (via Gamesindustry.biz) has reignited the controversy surrounding video game subscription services and their financial viability, especially as PlayStation Plus and Xbox Game Pass have raised their prices. It all started with information provided by the investment analysis firm GoodBody, which claims that the amounts Sony and Microsoft pay for the performance of these indie publishers' games on their services have decreased and affected their overall finances.
Regarding this, Michael Douse, Director of Publishing at Larian Studios, the creators of the successful CRPG Baldur's Gate 3, shared his opinion and believed that the best way to support companies in the industry is by buying their games, not subscribing: "I've always been empathetic to people who need this to make a profit with games, but at the same time, we've all been asking ourselves what happens when the money runs out? The best way to support the developers and publishers you like is to buy their games if you can afford it."
The Video Game Industry Will Stay Afloat with Quality Games, Not Devaluation
Later, the Larian Studios executive pointed out that rather than criticizing business models, the focus should be on preserving the quality of video games because that's the only way to maintain a relatively healthy industry that goes beyond the distribution proposals that companies put on the market: "Just as a preventive note: you can't insult an economic model. The economy has no feelings. It's okay to talk about these things. The most important thing is that together we build an industry where quality content can thrive and not be devalued."
On the other hand, Michael Douse praised how Steam handles its available titles, as he believes there are greater chances for a non-mainstream video game, beyond the hype surrounding AAA titles, to be exposed to the public. This is in contrast to what he views as outdated store structures, a veiled jab at PlayStation and Xbox.
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