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If you were to listen to the internet, it would seem that AAA studios are be on their last gasp, with indie devs dancing on their graves.
The reality is that, aside from the big indie game of the moment (think Silksong or Expedition 33, if you want to count the latter as indie), most gamers don’t care or don’t even know indie games exist in the first place.
I have a few gamer friends (each of whom spends a few hours daily on games), and only one of them plays maybe one indie game per year, and only those who manage to breach through his bubble via influencers and streamers.
Indie devs don’t need to reach mainstream mindshare to become successful. An indie team that’s stays small and nimble doesn’t need to reach a million unit in sales. Like how many mainstream gamers have heard of Tiny Glade a game that made a few million dollars created by two people.
Ehhh I know a lot of people that play indie games, but generally they only play one or two genres of them. Part of it is that the terminology gets confusing because people mean different things. Like, other than baldur’s gate, I couldn’t tell you the last western AAA game I played. But I played FF7 rebirth which is definitely AAA but not what people are always talking about when that talk about AAA sinking. There are also tons of studios that you probably wouldn’t call AAA but you also wouldn’t call indie. Like, I probably play more games from Falcom than any other studio. They’re not huge headcount-wise or cutting edge technology-wise but they’ve been consistently making games since the 80s. I think a lot of people don’t bucket those types of developers in their heads at all.