Sunday, December 25, 2011

Indie Games and Economics: Why The Economic Downturn Is Good for Indies

As I was studying economics, I came across the fact that indie games are inferior goods. That is, inferior goods have an inverse relationship with the economy; the more the economy lowers, the more of the inferior good is bought. In contrast, a normal good is sold more when incomes rise, and not vice versa.

Why is this? It is because that indie games are seen as an substitute product compared to commercial games. The more the economy recedes, the less income that people receive, and the more people will be attracted to indie games, which are often priced lowly.

When the economy rises once more, the "Year of the Indie" will end, unless independent game developers will change the way consumers of average America view their games.