Game Developer

How Profitable Is A Game Developer? (Updated for 2024)

Pat Walls

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Updated: September 19th, 2024

How Profitable Is A Game Developer? (Updated for 2024)

So you want to start a game developer?

And the first question that came to your mind was, “well, are game developers actually profitable?”

With a market size of $162B - there’s plenty of business to go around.

Especially considering:

You could start a game developer with as low as $100
Based on our data, game developers generate an average of $723K per year
You could see gross margins as high as 23% with game developers

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a game developer.

Let’s dive in!

Is a game developer profitable?

Yes, a game developer is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $723K per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your game developer.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your game developer is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a game developer worth it?

If you’re wondering if a game developer is worth it, the answer is a big YES. With game developers, you have the potential to earn $723K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $162B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a game developer to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful game developers case studies.

Examples Of Profitable Game Developers

Here are a few examples of profitable game developers, and a few more details about them:

1. Dilly Dally Games (Mexican Train) ($240K/year)

The game development started as a project for Christian's masters degree in computer science, and was going to sell software licenses on eBay and ship the game via CD.

Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $500

How I Started An Online Gaming Company And A Free Arcade Game That Generates $16K/Month

Dilly Dally Games, run by solopreneur Christian Tuskes, has over 10k daily active users and earns between $16-17k per month from ad revenue due to its unique appeal to a demographic underserved in the gaming industry, as well as its focus on long playing times.

Read this case study

Read by 5,448 founders

2. Scirra Ltd ($1.2M/year)

Thomas and Ashley Gullen, founders of Construct 3, were passionate about computer games from a young age. Ashley's struggles to build his dream game led him to develop a general-purpose game engine called Construct Classic. They launched Construct 2 as a commercial product, focusing on HTML5, which proved to be a successful gamble. They now generate around $100k per month in revenue and have learned important lessons about running a business and listening to customer feedback.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $1K

We Created A $100K/Month No-Code Tool For Video Game Developers

Construct 3, a browser-based game engine that allows anyone to create games without coding, has grown from a pay-once model to generating $100k per month in revenue through a subscription-based system, after launching with the help of early-adopter customers and a focus on organic growth, customer feedback, and white-hat SEO.

Read this case study

Read by 11,233 founders

3. UltraShock Gaming ($15K/year)

Hassan, the founder and CEO of UltraShock Gaming, came up with the idea for his indie game marketing firm when he noticed the struggles indie game developers faced in getting their games on large PC platforms like Steam. Inspired by their frustrations, he decided to create a platform to help these developers with marketing, copywriting, and beta testing in exchange for a percentage of profits. With a community of over 500,000 gamers, UltraShock Gaming has generated $15k in revenue per year, with $12k in profit.

Is it profitable? Yes
How much money it makes: $15K/year
How much did it cost to start: $4K

How I Started And Sold A $15K/Year Video Game Marketing Business

Aspiring founders looking to start a profitable business can learn from the story of how Hassan founded UltraShock Gaming, an indie game marketing firm, built up an audience of over 500,000 gamers, and generated $15k in annual revenue (with $12k profit) in just 2 years by offering marketing and advertising services for indie game developers.

Read this case study

Read by 4,510 founders

Learn more about starting a game developer:

Where to start?

-> How much does it cost to start a game developer?
-> Pros and cons of a game developer

Need inspiration?

-> Other game developer success stories
-> Marketing ideas for a game developer

Other resources

-> Game developer tips

How much can you make with a game developer?

With a game developer, you can make an average of $723K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a game developer make a week?

Based on our data, average weekly revenue for a game developer ranges around $15.1K. As such, you could see monthly revenues of $60.3K.

To know if your game developer achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your game developer.

How much do game developers owners make?

The income of a game developer owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established game developer is about $15.1K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a game developer owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Game Developer Profit Margins

Generally speaking, a game developer can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a game developer, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, game developer owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, game developer owners can ensure long-term sustainability and profitability for their business.

Game developer owner salary

The salary of a game developer owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established game developer, in a prime position, might see an average weekly salary around the ballpark of $12.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a game developer may be a promising business to start - but the success of your game developer mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable game developer.

Part of

Becoming A Game Developer: Everything You Need To Know

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