State of Play 2024 Summer Edition

Aug, 2024 SUMMER
EDITION
THE XSOLLA REPORT
STATE OF PLAY

THE XSOLLA REPORT
INTRODUCTION 2
CONTENTS
EXECUTIVE
SUMMARY
9
INDUSTRY
UPDATES
10
GAMES FOR
CHANGE 2024
– OUR TOP
TAKEAWAYS
17
THE XSOLLA REPORT
INTRODUCTION 3
Current trends
and patterns
in the indie market
22
What does this mean
for the industry?
48
Article 1 | A spotlight
on indie games: Good games
come from anywhere
28
Article 3 | Game
development tools: How
building and launching a game
has become more accessible
42
Article 2 | Instant solutions:
Empowering every developer
to launch their game
36
FOREWORD 6 IN THE NEWS 9 20
INDIE GAME
GROWTH
SECTION 1
INDIE GAME GROWTHINDIE GAME GROWTH

THE XSOLLA REPORT
INTRODUCTION 4
CONTENTS
70
EDUCATION
IN GAMING
SECTION 3
52
INDUSTRY
MOVERS &
SHAKERS
SECTION 2
Exploring academics
and gaming
72
Representation
in the games industry
54
Article 1 | Mastering game
industry skills with online
and alternative learning
76
Article 1 | A Conversation
with Angela Dachowski
58
Article 2 | A Conversation
with Kristen Lambert
64
THE XSOLLA REPORT
INTRODUCTION 5
103
ABOUT
XSOLLA
102 CONCLUSION 86
INFLUENCERS
IN GAMING
SECTION 4
The impact of gaming
influencers
88
Article 1 | The power
of influencers: How they grow
games from local to global
92
Guest Column | Pol-Martin
Mahmoud Alyaldani, Youtuber
– Shadow Fox BG, Website
91
Guest Column | Josh Gold,
Youtuber – Khasino, LinkedIn
100
What does this mean
for the industry?
84
What does this mean
for the industry?
96
INDIE GAME GROWTHINDIE GAME GROWTH

67
FOREWORD
As a woman in the tech industry
and the Global General Counsel
at Xsolla, I am honored to present
the Summer 2024 Edition
of “The Xsolla Report:
The State of Play.”
This edition delves deep into the dynamic
and ever-evolving gaming landscape and provides
a comprehensive overview of the latest trends, insights,
and opportunities. It is a must-read for all global gaming
industry professionals, legal experts, and stakeholders.
The gaming industry is a testament to creativity,
innovation, and resilience. We see this in the surge
of indie game development. Indie developers, with their
passion and ingenuity, are bringing fresh and captivating
titles and experiences to players worldwide. This growth
is fueled by the increasing (and much-needed)
accessibility of game development tools in the global
market, enabling creators from diverse backgrounds
to bring their visions to life. Although great strides have
been made, removing barriers to publication remains
a challenge to overcome. CARLA
BEDROSIAN, Esq.
Global General Counsel,
Xsolla
Educational initiatives are crucial
in shaping the gaming industry’s future.
Online learning platforms and specialized
programs are bridging the skills gap,
offering more affordable, flexible,
and targeted educational opportunities
to aspiring game developers from all
corners of the world. These initiatives
are essential in nurturing new talent
and ensuring continued innovation
and growth in the global gaming industry.
Xsolla’s Curine Academy is just such
an example of how to bridge the gap
and break down barriers.
Influencer marketing has also become
a power ful force. With their engaged
and loyal audiences, influencers play
a crucial role in driving game awareness
and influencing purchasing decisions.
This form of marketing is particularly
effective as players increasingly turn
to trusted voices to discover and evaluate
new games.
Staying informed about the latest
regulatory changes is essential from
a legal perspective. The ongoing legal battle between Apple and Epic Games,
the implications of the UK’s Digital Markets
Act, and fintech innovations in Africa’s
gaming sector are just a few of the critical
developments highlighted in this Report.
Understanding noteworthy legal
developments is vital for navigating
the complexities of global game
distribution, marketing, and monetization
opportunities.
I am proud to witness and contribute
to the gaming industry’s inclusive
and diverse growth. More voices
and perspectives are represented
and play crucial roles than ever before,
leading to more appealing and varied
gaming experiences. This diversity is not
just a strength but an absolute necessity
for our industry’s continued evolution
and sustainable growth.
I invite you to explore this
edition of “The Xsolla Report”
and delve into the latest
trends, data, and insights
from global gaming experts.
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The gaming industry is constantly
changing, driven by shif ting trends
and outcomes that are reshaping
the landscape. In this quarter’s
report, we focus on some pivotal
areas that are changing the game:
the explosion of indie games
alongside accessible game
creation, the value of online
learning programs and skills
development, and the impact
of influencer marketing on game
success.
INDEPENDENT GAME
DEVELOPMENT
Is a hotspot of growth and talent,
fueled by passionate creators and
innovative titles that are capturing
the attention of players worldwide.
This surge is supported by
advancements in technology
and the increasing availability
of development tools, which
are making game creation more
accessible than ever before, and
empowering aspiring developers
to bring their visions to life.
EXECUTIVE
SUMMARY
ONLINE LEARNING AND SKILLS
DEVELOPMENT
Is rising in importance to those entering the field
and online programs are bridging the gap
in nurturing continued education. With flexibility
and specialized approaches, these programs
are beneficial for those looking to break into
the industry or advance their careers, providing
opportunities for continuous learning
and professional growth.
INFLUENCER MARKETING
Has emerged as a critical component in a game’s
success. With their vast and engaged audiences,
influencers have the power to drive game
awareness, generate buzz, and ultimately
influence purchasing decisions. This form
of marketing is proving to be highly effective
as players increasingly rely on trusted voices
to discover and evaluate new games.
Are you ready to dive into our topics this quarter,
examine the latest data and trends, and uncover
new insights from global gaming experts?
Let The Xsolla Report
be your guide.
IN THE NEWS
RECENT INDUSTRY NEWS
APPLE AND EPIC
GAMES ARE
HEADING BACK
TO COURT AGAIN —
HERE’S WHY
Forbes
THE UK PASSES
ITS VERSION
OF THE EU’S DIGITAL
MARKETS ACT
Yahoo Finance
HOW FINTECH
INNOVATION
CAN UNLOCK
AFRICA’S GAMING
REVOLUTION
World Economic
Forum
SUMMER GAME
FEST REMINDED US
THAT INDIE GAMES
AREN’T GOING
ANYWHERE
Boy Genius Report
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INDUSTRY
UPDATES
PAYMENTS
WHAT’S NEW ACROSS GAME
INDUSTRY SECTORS
CONTINUING TO GO CASHLESS
Global cashless payment volumes are predicted
to increase by over 80% in the period between
2020 and 2025 . The fastest growth is expected
in the Asia-Pacific region, with cashless
transaction volumes growing by 109% until 2025
and then by 76% from 2025 to 2030.
Number of cashless
transactions,
in billions
Source: PwC
DIGITAL WALLET DOMINANCE
The payment gateway market is
estimated to grow from $26.7 billion in
2024 to $48.4 billion by 2029, at a
Compound Annual Growth Rate (CAGR) of
12.6%. North America stands out as a
leader in the adoption of digital wallets.
Payment gateways that seamlessly
integrate with popular digital wallet
options play a pivotal role in catering to
consumer preferences and streamlining
the checkout process.
Global payment
gateway market,
2024 to 2029
Source:
Research And Markets
12.6 %
CAGR for payment gateways
from 2024 to 2029
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POPULARITY OF BUY NOW,
PAY LATER (BNPL)
The number of BNPL users in the US is expected
to reach 82.1 million this year, and will exceed
100 million in 2025. Gen Z is the generation
that uses BNPL the most and adoption rates
are expected to increase from 36.8%
in 2021 to 47.4% in 2025.
> 10 %
increase in Buy Now,
Pay Later adoption
by 2025
Source: E-Marketer Source: Statista
MOBILE GAMING
DIGITAL MARKETS ACT (DMA) UPDATES
In June 2024, the European Commission adopted a public
statement on Artificial Intelligence and launched a call
for tenders for a study into interoperability tools in the digital
single market in the context of the Digital Markets Act. And most
recently, the EU’s General Court has ruled that TikTok parent
company ByteDance meets the required user threshold to be
a “gatekeeper” under the Digital Markets Act. Here’s an overview
of the companies and services regulated under the EU’s Digital
Markets Act:
Core platforms
regulated by DMA
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TOP MOBILE GAME GENRES
Puzzle games are the most popular mobile games
in the US, with an average of more than 20% of all
age groups favoring the genre, followed by action,
strategy, and sports.
Favorite game genre
on mobile in 2024,
by age
Source: Vorhaus Digital Strategy Study – 2024
PERFORMANCE OF MOBILE GAMES
IN NORTH AMERICA
Multiplayer mobile games consistently show
the longest session lengths, even among
the bottom 25% of games. Notably, this genre,
along with casino games, is the only one where
the top 25% of games have session lengths
exceeding 15 minutes. Most genre medians fall
within the range of 4 to 9 minutes.
Average game session
length in North America,
by genre (Q1 2024)
Source: Gameanalytics
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INVESTMENT
FUNDING REBOUND
Following several slow quarters,
funding for companies
in the gaming sector has risen
this year, driven by a renewed
focus on early-stage investments
and confidence in the ability
of small studios to deliver
successful titles. Crunchbase data
shows that in the first quarter
of this year, investors committed
$265 million globally to early-stage
gaming startups . This represents
a 65% increase from Q4 2023
and a nearly four fold jump
from Q3, which saw investment
hit a multiyear low.
Global early-stage
gaming investment
Source: Crunchbase
$ 265M
committed by investors globally
to early-stage gaming startups
65 %
increase in funding
from Q4 2023
GAMES FOR
CHANGE 2024
� OUR TOP
TA K E AWAY S
This year’s Games for Change
Festival showcased the power
of games to drive positive change.
The event served as a power ful
reminder that games are not just
a form of entertainment; they can
be power ful tools for education,
advocacy, and social impact.
Discussions, workshops,
and presentations throughout
the festival highlighted a range
of critical issues, from ensuring
equitable access to game
development education to using
games to address global
challenges. Here are our top
takeaways:
01
Continuous learning and a well-rounded
education are crucial for driving innovation
and staying competitive in game
development. There was a strong
emphasis on the importance of game
development education, with many
discussions focusing on how to make
the industry more accessible and
inclusive.
EDUCATION
IS KEY
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05
COLLABORATION
IS ESSENTIAL
02
SOCIAL IMPACT
IS DRIVING
GROWTH
04
A RISE
IN ONLINE
EDUCATION
03
TECHNOLOGY IS
TRANSFORMING
GAMEPLAY
Games that focus on social impact are not only
creating positive change but also driving growth
and opening new opportunities in the industry.
From addressing global challenges to fostering
empathy and understanding, games have
the power to create positive change. Attendees
and speakers alike highlighted the increasing
demand for games that address real-world issues
and inspire positive action, from climate change
to mental health awareness. The event underscored the importance
of collaboration between game developers,
policymakers, and nonprofits to create a better
future through games. Examples of successful
partnerships were showcased, highlighting
the need for combined efforts to tackle complex
challenges and maximize the positive impact
of games.
These takeaways provide a roadmap
for educators, industry leaders, and policymakers
to create a more inclusive, innovative,
and dynamic future for game development.
And the call to action is clear: supporting
and engaging with educational initiatives can
shape the future of the gaming industry
for the better.
Online education is essential
for making high-quality game
development education
accessible to a global
audience. There was
a highlight of the growing
importance of online
educational platforms
in extending the reach
of game development
education. Online academies
can provide comprehensive
curricula covering all aspects
of game development,
accessible to aspiring
developers worldwide.
These platforms can
overcome geographical
limitations and offer flexible
learning opportunities,
making high-quality education
available to a global audience.
From virtual reality (VR) and augmented reality
(AR) to artificial intelligence (AI) and blockchain,
new technologies are transforming gameplay
experiences and expanding the possibilities
for game developers. The event featured
numerous examples of how these technologies
are being used to create immersive and engaging
experiences, such as VR games that allow users
to walk in the shoes of refugees or AI-powered
chatbots that provide mental health support.
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Section
01
INDIE GAME
GROWTH

22232223
CURRENT
TRENDS AND
PATTERNS
IN THE INDIE
MARKET
So far, 2024 is witnessing an unparalleled
surge in the popularity of indie games,
marking a distinctive shif t from the
long-standing dominance of AAA titles.
Recent successes include Palworld
with a $6.75 million budget – surpassing
25 million units sold. This trend continues
the legacy of highly successful indie titles
such as Minecraf t , Stardew Valley, Among
Us , Fall Guys , and Valheim .
Indie game development has resulted
in the development of various game
genres, each with its unique gameplay
mechanics and artistic styles. The top
genres for studios below 50 people
are action, adventure, and RPG games.
Lifetime unit sales generated
by Palworld worldwide
as of February 2024,
in millions
units sold worldwide
for Palworld in 2024, making
it one of the most successful
indie games this year
Source: Statista
25M+
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Most developed
indie game genres Source: 2023 Unity Gaming Report
Indie games are making an unprecedented impact,
with 5 of the top 10 highest-grossing games on Steam in 2024
(Palworld , Granblue , Last Epoch , Lethal Company ,
and Enshrouded ) created by publishers classified as indie.
Top Games on Steam
by Revenue YTD,
in millions
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Despite typically having
lower graphical fidelity
and complexity compared
to AAA titles, indie games
are successfully delivering
great player experiences,
with average Steam ratings
for indie games at 72%
nearly matching those
of AAA games (74%).
72 %
Avg Steam rating for indie games Source: Yo u g o v
Source: VG Insights
Independent game studios and developers
are on the rise, with an increasing number
of gamers choosing indie games. The percentage
of American PC and console gamers playing indie
games grew from 13% in 2021 to 18% in 2024.
5 %
increase in US PC
and console
gamers who play
indie games
Increase in gamers
playing indie games,
2021-2022
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A SPOTLIGHT
ON INDIE GAMES
THE RISE OF THE INDIE
GAME INDUSTRY
Ar ticle
01
Good games come from anywhere
Indie games have emerged as a focal point of interest
for the gaming community over the past few years,
with the percentage of PC and console gamers playing indie
games in the US increasing from 13% in 2021 to 18% t o d a y.
One driving force behind this trend is the unique connection
indie gamers seek with their games. Emotional engagement
is a hallmark of indie games, which of ten prioritize narrative
depth and innovative storytelling. More than 36% of indie gamers
look for an emotional connection to a story, a sentiment that
is notably higher than the 18% of gamers who play other major
genres .
18 %
higher interest
in an emotional
connection to the game
for indie players,
compared to other genres
What drives indie
players to play
video games?
Source: Yo u g o v
Indie gamers are drawn to experiences that transcend
reality. About 35% of indie gamers play to engage
in activities they cannot do in real life, compared to 23%
of other gamers. Indie gamers are also 80% likelier
to play for the opportunity to interact with gamers
globally, highlighting their preference for a connected,
community-oriented gaming experience.
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INDIE GAME TRENDS
The first five months of 2024 have
been particularly strong for indie
games, with monthly sales
consistently exceeding
the $3 million mark.
Source: Xsolla
$ 3M+
in monthly sales for indie
games in Q1 and Q2 of 2024
Indie sales trend
periodically trend
analysis
However, the growth rate experienced
a slowdown in March, with the YoY increase
dropping to 45%. The overall trend remained
positive despite this dip, with April and May 2024
seeing more moderate growth rates of 17%
and 19%, respectively. While these percentages
were smaller compared to the beginning
of the year, they still contributed to a steady
upward trajectory in monthly revenue.
Source: Xsolla
According to Xsolla Analytics, this upward trend
began with a substantial boost in sales
in December 2023, which carried into the new
year. January kicked off with a year-over-year
(YoY) growth rate of 82%, reflecting the growing
popularity of indie games. February continued
this momentum with a peak YoY increase of 100%,
doubling the revenue compared to the same
month in the previous year.
82 %
year-over-year
growth rate of indie
sales in January
2024
Indie sales trend
YoY comparison
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EMERGING MARKETS
FOR INDIE GAMES
The empowerment
of game creators and
game development has
played a significant role
in the growth of indie game
developers worldwide.
Advances in technology,
affordable development
tools, and accessible
distribution platforms
have empowered more
individuals to create
and share their games.
This accessibility has lowered
the barriers to entry, allowing a diverse
array of voices and ideas to flourish
within the gaming industry. As a result,
developers from various backgrounds
and regions can now contribute
to the global gaming market,
fostering innovation and creativity.
POLAND
An indie game
powerhouse
Poland stands out as a leading hub
for indie game development in Europe.
Home to renowned studios like CD Projekt
Red, Mighty Koi, and 11 Bit Studios,
the country boasts a vibrant game
development scene. The local government
has been instrumental in this success,
providing crucial funding and resources
that have fostered a thriving environment
for indie developers. This support
has enabled the creation of some
of the industry’s most acclaimed games.
Creating opportunities
for game development
Fueled by a love of unique experiences, gamers are increasingly drawn to indie
titles. This trend highlights the importance of fostering independent developers,
whose creativity injects fresh perspectives and innovative mechanics into the
gaming landscape. The thriving indie game sector shows that great games really
can come from anywhere, bringing fresh ideas and creativity to the games industry.
INDIA
A rising star in game development
India’s indie game development sector is experiencing rapid growth.
With a large pool of tech-savvy talent, the country is becoming
a prime location for game development. Prominent indie studios like
Broken Helm and Xigma Games are enhancing India’s reputation
in the industry. The government in India has played a supportive role,
offering essential funding and resources to help indie developers flourish.
KAZAKHSTAN
Entering
the game scene
Kazakhstan is quickly making a name
for itself in the indie game development
world. Despite its relatively small industry,
the country hosts promising studios such
as HugePixel and Dreamgate Company.
Government support has been key to this
growth, providing the necessary funding
and resources to nurture aspiring game
developers.
ROMANIA
Historical and growing
indie presence
Romania’s indie game development sector
is thriving, building on a rich history
of game creation. Leading studios like
16 Bit Nights, Alien Pixel, and Metagame
Studio are at the forefront of this growth.
The local government has significantly
contributed to this expansion, offering
funding and resources to support indie
game studios.
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INDIES CREATING GAMES
WORLDWIDE IN 2023,
BY COUNTRY
Source: 2023 Unity Gaming Report
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INSTANT
SOLUTIONS:
According to NewZoo’s 2023
Global Games Market Report ,
the video games market showed
a slower-than-desired annual
revenue of $183.9 billion,
a 0.5% year-over-year growth.
Revenue from mobile games is declining —however,
the PC market remains strong thanks in part
to the success of a selection of premium titles.
Still, most studios are optimizing costs and delaying
game releases.
To survive and thrive in the current situation, developers
seek ways to optimize revenue and reduce expenses
and they experiment with monetization methods
to generate more revenue from current titles and players.
Mobile games are directing sales to the web.
PC games are entering the mobile market
and experimenting with content subscriptions and live
services. Console games are moving to the cloud,
and there are many more active attempts to close
the game sales gap between developers and players.
Ar ticle
02
Empowering every developer
to launch their game
Given the continuing
struggles in the gaming
market, developers face
numerous challenges,
including:
RETAINING REVENUE
76% of launched games reach peak
revenue within the first year , but only
4% reach this peak during the
second year, meaning finding new
revenue opportunities is essential
to retaining players, reducing costs,
and boosting profit margins.
76 %
43 %
of launched games reach
peak revenue in the first
year, but only 4% reach
this in the second year
of games are killed
in development
before they launch
REACHING NEW
AUDIENCES
The cost per install (CPI) of a mobile
game varies between $2.00
and $6.00, depending on the genre
and operating system. This is higher
than the CPI of a mobile app, which
varies between $0.80 and $5.00.
The cost of acquiring new players
will continue to rise, so developers
need cost-effective ways to reach
and engage these potential players.
CHOOSING THE RIGHT TOOLS
Indie developers of ten have limited resources,
time, and budget to successfully bring their
games to market. This of ten makes their games
part of the 43% that are killed in development
before they launch. Finding the right tools
that will alleviate some of these challenges
and streamline the game development process
is essential to accelerating time to market.
OBSTACLES
FOR GAME DEVELOPERS
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BREAKING DOWN
BARRIERS TO LAUNCH
The market is creating new tools that
offer quick launches, testing of new
monetization methods, and audience
outreach tools to help developers
adapt to increasing demands
and address challenges.
DevOps tools
Indie developers of ten have limited resources, time,
and budget to bring their game to market successfully.
DevOps tools can help alleviate some of these challenges
by streamlining the game development process
and accelerating the time to market.
Survey data highlights the benefits of using DevOps tools
in indie game development. Indie devs emphasized
the streamlined development cycle with the integration
of pre-built functionalities, which not only accelerates
time to market, it automates tasks like testing
and deployment.
Indie developers also noted the cost-effectiveness
of cloud-based DevOps solutions, which enable scalable
infrastructure without the need for expensive hardware
investments. This empowers indie developers to optimize
their projects and overcome resource constraints more
ef fectively.
Reasons studios use DevOps
to get their games to market
Source: Fungies
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INSTANT SOLUTIONS
Instant solutions can be crucial in
breaking down barriers and helping
developers more efficiently bring
their games to market by increasing:
02
EFFICIENCY
Developers can significantly reduce development
time by utilizing pre-built assets and automated
processes with Instant Web Shop allowing them
to create online stores fully equipped to facilitate
in-game web purchases.
04
COLLABORATION
Enhanced collaboration tools improve
communication and coordination among team
members, streamlining the development process
and ensuring a cohesive final product.
ACCESSIBILITY
By offering ready-made assets and tools,
like Instant Launcher and Instant Game Sales ,
these solutions lower the entry barrier for new
developers, enabling them to create high-quality
games without the need for extensive resources.
01
SCALABILITY
Instant Cloud Gaming and cloud-based solutions
ensure that developers can manage resources
effectively, adapting to the needs of their projects
without incurring unnecessary costs.
03
One of the most power ful approaches is Xsolla Instant
Solutions , which aim to provide a fast, cost-efficient way
to rapidly monetize existing players and acquire new
ones. A suite of solutions aimed at seamless integration
and a short time to market, they offer quick access
to expanded audiences and new monetization strategies
for any game and any platform.
The rise of instant solutions and innovative monetization
strategies is reshaping the gaming landscape, making
it possible for indie developers to compete with larger
studios. By leveraging these tools, developers can
optimize their workflows, reduce costs, and reach
a broader audience, ultimately driving growth
and success in the gaming industry.
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GAME
DEVELOPMENT
TOOLS
What was once an industry dominated
by large studios with vast resources
is now an open community where every
developer, from indie to AAA can thrive.
This democratization of game
development has been largely driven
by the proliferation of power ful and
accessible game development tools,
which have lowered the barriers to entry
and enabled more people to build
and launch games.
Ar ticle
03
How building and launching
a game has become more accessible
One of the most significant factors in making game
development more accessible is the availability
of power ful game engines. Engines like Unity
and Unreal Engine have revolutionized the way
games are developed.
Unity has the largest share of the game engine
market: 38% of game developers who use game
engines use Unity as their primary engine. However,
the number of Unity games increased by only 8%
in 2023 compared to 2022. Meanwhile, the number
of Unreal games increased by 10%, while the number
of Godot games increased by as much as 69%.
Source: Gamedeveloper
THE RISE OF ACCESSIBLE
GAME ENGINES
Number of game releases
by engine
of game developers
who use game
engines use Unity
as their primary
engine
38 %
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Thanks to free and affordable resources,
the financial barrier to game development
has also been significantly lowered.
Both Unity and Unreal Engine offer free versions for small
developers and hobbyists. Additionally, online platforms like
GitHub provide access to countless open-source projects
and libraries that can be used in game development.
With game development becoming
increasingly popular, many resources
are now available that can make creating
an indie game easier and faster.
One resource is the Unity Asset Store,
which offers a vast library of premade
assets that can be used to create
a quick prototype of an indie game.
FREE AND LOW-COST
DEVELOPMENT
RESOURCES
ASSET STORES
AND PREMADE ASSETS
FOR GAME CREATION
Source: Fungies
Indie use of asset packages
for prototyping and concepting
Percent of total developers
The Unity Asset Store offers a wide range
of assets, including 3D models, textures,
animations, sound effects, music, and scripts,
created by developers and artists worldwide.
Compatible with the popular Unity game engine,
these assets can be purchased and downloaded
directly from the store.
Since using premade assets can significantly save
time and effort, many indie developers use them
in their games. In fact, over 40% of indie
developers use 5 or more packages to develop
concepts or prototype their game. This speeds up
the development process and enables developers
to focus on programming, design, and testing.
of indie developers use
5 or more packages
to prototype their game
40 %
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A crucial aspect of modern game development
is the backend technology that supports
multiplayer functionality, cross-play,
and other essential features.
And depending on how much time developers dedicate to working
on backend tech, how many people comprise backend development
teams at the studio, and the average salary of a backend developer,
the cost of the time and expertise needed can add up quickly.
The cost of building a backend
DEVELOPER-FRIENDLY
AND COST-EFFICIENT
BACKEND TECH
Tools like Xsolla Backend have become
viable options, enabling developers
to build solid foundations for
long-term technological advantages.
These third-party solutions provide
all the benefits of in-house backend
development and offer a suite
of tools designed to streamline game
development – without the associated
time, effort, and millions of dollars in cost.
Source: Metaplay
The true cost of the tech large publishers
spend to scale hit games – including
the hidden impact on game programmers
– is an average of $21 million to build
and maintain their backend.
Historically, game developers needed
to create their own internal tech and tools
due to the absence of viable third-party
backends. However, recent years have
seen the emergence of third-party
backend providers offering extensive
customization and extensibility.
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WHAT DOES
THIS MEAN
FOR THE
INDUSTRY?
29 %
of all Steam
revenue came
from indie games
in 2023, up from
25% in 2018
Increased market share
and revenue growth
Indie games have steadily increased their market share over
the past decade. In 2023, indie games accounted for 29% of all
Steam revenue, up from 25% in 2018. Despite the attention
commanded by these major titles, indie games have carved out
a significant portion of the market, demonstrating their resilience
and appeal and averaging well over $100,000 per title depending
Indie Game
Revenue
on Steam,
2018-2024
Source: VG Insights
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Creating access for
game development
One of the primary catalysts for the rise of indie game
studios is the accessibility of tools and platforms.
Advancements in game development resources have
significantly lowered the barriers to entry, making it
easier than ever for small developers and studios to build
and launch their games. In fact, indie game developers
are shipping games more quickly and developers
are working fewer hours.
Length of project
development,
from start to ship date
Source: 2023 Unity Gaming Report
Source: Newzoo
Cross-platform
development
The surge in mobile gaming and the growing appeal
of indie titles across various platforms have spurred
independent developers to embrace cross-platform
development. Nearly one in four PC and/or console
players are multi-platform players — gamers who engage
with every major gaming platform.
By optimizing games for multiple platforms—including PC,
consoles, and mobile devices—indie studios can reach
a vast audience and amplify their game’s exposure.
This strategic approach enhances the accessibility
and popularity of indie games, contributing to their
sustained growth.
Cross-platform
players in 2023
1 in 4
players are
multi-platform
players
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INDUSTRY
MOVERS &
SHAKERS
Section
02

5455
REPRESENTATION
IN THE GAMES
INDUSTRY
One of the primary reasons gaming
companies struggle to capitalize
on their female fan base is their
adherence to a narrow set
of motivators.
Women have identified Completion (17.0%), Fantasy
(16.2%), and Design-based games (14.5%) as their top
motivators while men prioritized Competition (14.1%),
Destruction (11.9%),and Completion (10.2%).
This difference in gaming preferences highlights the need
for companies to diversify their game design and
marketing strategies to better engage female gamers.
Primary gaming
motivations,
by gender
Source: Rivaltech
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The average gamer is 34 years
old and plays a little over
6 hours a week, and 21%
of players are hardcore gamers
who play more than 6 hours.
Meanwhile, female gamers
make up nearly half
of the gaming market, with
women aged 18-35 comprising
30% of all gamers in the US.
Types of gamers
Source: Te c h j u r y
of all gamers in the US
are women aged 18-35
30 %
There are many women who not only play games but
hold gaming near and dear to their identities, with over
one-third of women who play on PC or console identifying
as “core gamers”.
Level of gamer
identification
Source: NewZoo
of women who play
on PC or console
are considered
as core gamers
33 %
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A CONVERSATION
WITH ANGELA
DACHOWSKI
Ar ticle
01
Our team at Xsolla
recently caught up
with Angela Dachowski,
a producer leading a fully
remote indie studio
in the Midwest US,
a Women in Games
Ambassador and
a member of The Game
Awards Future Class
of 2023. With her deep
passion for fostering
a balanced and inclusive
work environment,
Angela shared her unique
perspective on how indie
studios can set
new standards
for the industry. Join us
as we explore her
journey, insights, and
the principles that drive
her vision for a healthier,
more diverse gaming
world.
Angela Dachowski is the producer for a fully
remote indie studio in the Midwest US.
Her studio focuses on developer health
and sustainable growth with tenets such
as a 32-hour work week and flexible working
methods to set an example for other indie
studios. Angela is dedicated to promoting
inclusivity and diversity in games. She leads
production coworking sessions and panels,
co-hosts podcast interviews, and delivers talks
on these topics. She is honored to be a current
Women in Games Ambassador and a part
of The Game Awards Future Class of 2023.
ANGELA
DACHOWSKI
Producer at Flippfly
I never really knew that games were
an option as a career for me, especially
when I look at some of my most loved
games, I don’t track as a serious gamer.
I grew up playing RuneScape, which was
my personality for a long time. So I would
play that all day and then switch
to hand-drawing maps of the world.
HOW DID
YOU BECOME
INVOLVED
IN GAMING?
01
Looking back, I loved doing creative things,
being around computers, and being with
people, but none of those felt like the right
fit to focus on just one.
I hear this of ten when talking to producers,
but I accidentally fell into it. I started out
doing some ad hoc live ops analysis
for a few hours a week for a studio
in Wisconsin, and that gradually grew into
a full-time position in production, where
I get to do all of those things now. I get
a little bit of creativity, a little bit of working
with computers, and also being in a team
setting, leading my team to be their best
selves.
Image from RuneScape game
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WHILE THE GAMING
INDUSTRY IS STARTING
TO REALIZE WOMEN GAMERS’
ENORMOUS INTEREST
AND PURCHASING POWER,
THE SHIFT IN MARKETING
TOWARDS WOMEN IS STILL
IN A TRANSITIONAL PHASE.
WHAT INITIATIVES HAVE
YOU LED OR PARTICIPATED
IN AT FLIPPFLY TO REACH
THIS PLAYER BASE?
AS AN INDUSTRY MEMBER
AND PLAYER, WHAT DO YOU
HOPE TO SEE MORE
OF IN THE FUTURE?
03
02
AS AN AMBASSADOR FOR WOMEN IN GAMES ,
HOW DO YOU EMBODY BUILDING A FAIR PLAYING
FIELD FOR WOMEN IN GAMING? HOW IS THAT
REFLECTED IN THE GAMES THAT FLIPPFLY
BUILDS, AND HOW DO YOU APPROACH YOUR
ROLE AS A PRODUCER?
From Flippfly’s perspective, this is reflected
in our values. There are 10 of us, and
I’m getting to work with another Chinese
woman for the first time in my career. We
also have a really big interest in the health
of our studio with a fully remote team,
a 32-hour workweek, and an inclusive work
environment, which is helpful for people
with different life situations, especially
since a lot of our team is neurodiverse.
With that being said, Flippfly has needed
to make some sacrifices in other areas
to support the culture, but it’s a sacrifice
that we’re okay with because it means
a healthier team. And honestly, we get
better results because of it. I still consider myself to be relatively
junior, but I raise my voice and talk about
what I’ve been learning, especially in an
indie context, focusing on being visible.
I think this is true of pretty much every
single woman I’ve talked to who’s
in games, but I struggle a lot with
imposter syndrome. Seeing other women
and biracial individuals in prominent roles
has been incredibly helpful in overcoming
this. Opportunities to speak at events like
MDev or be visible through different
initiatives with the game production
community on Game Production
Community Discord have also boosted my
confidence within the gaming community.
That’s a tricky question because we don’t
have a huge marketing arm. We’re a really
small studio, so we don’t emphasize
gendered marketing. The best way
to describe it is to look at our main
character, a badass pilot who happens
to be female. Our approach to marketing
is pretty similar. While we’re play testing,
we do our best to have representation
in our beta groups to make sure that we’re
getting opinions from all people.
For me personally, the biggest thing that
I see when it comes to marketing
to women is players, and women,
especially, can tell when marketing
is disingenuous. We want products that
work, and we want games that are fun,
and that’s what I hope to see. I hope that
developers are going to make games that
are fun and appealing to women instead
of targeting them.
AS A 2023 FUTURE CLASS GAME AWARDS RECIPIENT,
WHAT DID THAT RECOGNITION MEAN TO YOU? WHAT
ADVICE WOULD YOU OFFER ASPIRING INDIVIDUALS
LOOKING TO ENTER THE GAMING INDUSTRY? ARE
THERE SPECIFIC SKILLS OR EXPERIENCES YOU
BELIEVE ARE CRUCIAL FOR SUCCESS?
04
I mentioned that I struggled with
imposter syndrome for the longest time,
so I thought it was an error at first.
I kept looking at the email, thinking,
“That’s my name, that’s my email.” There
are so many people doing amazing things
for the games industry, so it’s been really
humbling to be included alongside them. It’s also invigorated my passion
to continue advocating.
Intentional networking and asking
thoughtful questions have been the most
helpful for me. Being willing to do both
of those is a skill, and it will serve
anybody well.
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Whisker Squadron: Survivor has been
a ton of fun to work with. Since launching
Early Access, it’s been incredible to see
how the game has improved. The most
exciting thing about these games is that
they’re genuinely fun. I have fun when
I’m playtesting and talking to our audience
about them. We’re looking forward
to our 1.0 launch in the coming months
and to really wowing players with some
big features they’ve been asking for.
Looking further into the future, we’re
in the prototype phase for a new game
centered around co-op play that we’re
really excited about bringing
to the market.
FLIPPFLY HAS SEVERAL
GAMES, INCLUDING
WHISKER SQUADRON,
EVERGARDEN, AND RACE
THE SUN. WHAT EXCITES
YOU ABOUT THESE TITLES,
AND WHAT DOES FLIPPFLY
HAVE COMING DOWN THE
PIPELINE THAT GAMERS
SHOULD START GETTING
EXCITED ABOUT?
06
The current industry landscape is a little difficult
to navigate, and that’s true whether you’re trying
to break into the industry or have several years
of experience. That said, a heavy focus on developers’
health needs to happen from the top down and I see
many initiatives to uplif t voices and mentor the next
generation of game developers.
I also see many of these initiatives happening here
in Wisconsin. You don’t immediately think of it
as a hotbed for gaming, but there are many publishers
here like Midwest Games and organizations like
the Wisconsin Games Alliance working on bringing
more gaming to the Midwest through conferences
and lobbying, which I think is excellent.
Supporting small studios that invest in individuals
is going to be the best way to encourage sustainable
studio growth and flexible ways of working is truly
the future. A lot of developers end up having to leave
where they’re from to move to California if they want
to participate in games. I think keeping games local so
that people don’t have to uproot their lives is important.
By supporting game development locally and helping
it grow, you’ll see more of those small studios laying
the groundwork for sustainability for the future.
05
WHAT CHANGES/BARRIERS HAVE YOU
EXPERIENCED IN THIS INDUSTRY,
AND WHAT DO YOU THINK WOULD MAKE
THE INDUSTRY MORE WELCOMING?
Image from Whisker Squadron: Survivor game Image from Race The Sun game
Image from Evergarden game
Supporting
small studios
that invest
in individuals
is going to be
the best way
to encourage
sustainable studio
growth and flexible
ways of working
is truly the future.
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A CONVERSATION
WITH KRISTEN
LAMBERT
Ar ticle
02
The Xsolla team had the
pleasure of speaking with
Kristen Lambert, a Game Art
and Animation graduate
from DePaul University with
a rich background in QA at
Wargaming Chicago-Baltimore.
Join us as Kristen delves
into her extensive
experience in the industry,
offers valuable insights into
problem-solving in QA, and
the importance of fostering
healthy game development
practices. Kristen Lambert graduated from DePaul
University’s Game Art and Animation program
in 2013, before working in QA at Wargaming
Chicago-Baltimore for over 9 years. She recently
joined the Midwest Games team and relocated
to Milwaukee and is getting to know her new
hometown. Her favorite part of the QA field
is its problem-solving mindset. She loves
helping Midwest Games build healthy
development habits, facing a new variety
of challenges daily while supporting small
or inexperienced studios, and educating
people on what it takes to bring a game
to completion.
KRISTEN
LAMBERT
QA Manager at
Midwest Games So, like most people, I became exposed

to games pretty early on. At first, I would
watch my older cousins play video games
or watch my stepfather play his PC tactical
strategy games, but as time went on,
I started playing them myself. And then,
for my ninth birthday, I got a Game Boy
Color. So, I had a lot of handheld
experience rather than console experience
growing up.
Professionally, I initially got into gaming
through QA, planning to build my portfolio
and eventually transition to an art position.
However, I realized that many artists
develop an unhealthy relationship with their
art when it becomes their job. Over time,
I found that I enjoy doing art for fun while
maintaining a separate day job.
HOW DID YOU
BECOME INVOLVED
IN GAMING? IS
THERE A PARTICULAR
GAME OR GAMING
EXPERIENCE THAT
HAS SIGNIFICANTLY
INFLUENCED YOU?
01
Image from Game Boy Color
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02
AS A QA LEAD, HOW DO YOU INFLUENCE INCLUSIVITY
IN THE GAMES YOU TEST? WHERE WOULD YOU LIKE
TO SEE THE ROLES OF QA GENERALLY MOVE TOWARDS
HAVING A MORE PROFOUND INFLUENCE IN SHAPING
MORE INCLUSIVE GAME CREATION?
I think it depends on the person. I’m asexual and consider
myself queer, so for me, topics on inclusivity are very near and
dear to my heart, especially intersectional feminism and similar
topics are something I try to be knowledgeable about. Even
issues like class and education access all matter when it comes
to games, so there’s always a lot to think about.
Quality Assurance professionals are the vanguards of advocacy
for the quality of the product and advocacy on behalf of the
consumer. We have to have this consumer mindset of, “What are
they going to think? What are they going to experience?” and then
bring that to the attention of developers before problems happen.
Sometimes, that can entail more design-level suggestions and
advice. Here at Midwest Games , I have a lot of agency, and I’m
very listened to in that respect, but that isn’t always the case for
every QA position. At the very least, we offer suggestions and
feedback and hope they take it into consideration.
A funny example of this comes from my time at Wargaming
which involved a decision to add breast physics to female
soldiers. For those unfamiliar, it’s a historical vehicle combat
game where players drive tanks and shoot each other and
I actually made quite a loud noise in the department about how
our player base would very likely comment on this decision and
it did end up getting pulled.
Not every game is going to have a cut and clear instance of how
it catches potential concerns, but I think more importantly,
we have to get people into the industry who have those
perspectives and are thinking about these things. That way,
at every level, we can integrate those thoughts and those
processes into the final product.
03
AS A LEAD, HOW DO
YOU EMPOWER YOUR
TEAM TO SPEAK UP WHEN
TESTING AND KEEP
INCLUSIVITY
AT THE FOREFRONT
OF THE GAMES YOU
WORK ON?
Part of it is just having that conversation
straight up. You speak to them, and you
say explicitly, “Hey, this is a thing that
I care about. I care about listening to you
and fostering that comfort.”
One of my favorite things to do during
the hiring process for internal teams was
to give people a chance who don’t have
experience but really want to work in this
industry but haven’t had the opportunities
that everyone else has had. Those
are always the people who end up
becoming some of the strongest
members of our team, and I’m really
proud of them and happy that they have
their foot in the door in this way.
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05
WHAT CHANGES/BARRIERS HAVE YOU
EXPERIENCED IN THIS INDUSTRY, AND WHAT
DO YOU THINK WOULD MAKE THE INDUSTRY
MORE WELCOMING?
04
DO YOU FEEL
LIKE QUEER
REPRESENTATION
IN THE GAMING
INDUSTRY HAS
EVOLVED IN YOUR
TIME SO FAR?
There’s always more work to be done. I think
that the industry has evolved as society has.
Historically, there’s always pushback whenever
there’s progress, so it’s a back-and-forth thing.
Unfortunately, we’re unfortunately, many places
are currently experiencing some of that pushback
right now, but in general, I think that the people of
this country are more accepting than they were.
That means that the industry is at least trying.
I think it’s really about building the culture and
breaking down the culture that occurs, especially
in some big studios, where maybe there isn’t that
oversight and there isn’t that top-down emphasis
on inclusivity and handling these things well.
But progress wins out slowly, in general.
So it really is about taking the spaces around
you because that’s what you have power over.
Because I don’t have power over the entire
industry, but I do have the power to help my
employees who need it.
06
FINALLY, JUST FOR
FUN: WHAT GAMES
ARE YOU PLAYING
NOW?
I play many different games, but right now,
I am very deep into Oxygen Not Included ,
a colony simulator game. It’s by the people
who made Don’t Starve, and it has the same
cartoony little guy art style, but you’re building
a colony in space.
It’s really challenging, but I of ten find myself
drawn back to those kinds of games
with a ton of technical depth.
I’ve been very lucky, you know,
but I think that it’s impossible not to have
been affected, at least in some way,
by the more insidious subconscious stuff.
Recently, one of my co-workers,
they’re non-binary, AFAB, and femme
presenting, and they were talked down
to while showing games at an industry
event for us. Barriers like that still exist.
Sexist people exist, and therefore,
we experience some sexism, but what
would make it more welcoming
is a more conscious effort to call out
these behaviors when they happen.
More effort is needed to put people – who haven’t had these opportunities
but are very deserving of them – into
positions where they can first of all lead,
but also prevent these things from
happening more.
The more effort you can put in to find
people who are deserving but overlooked,
the quicker the change comes from
within, hopefully. It’s putting active effort
into thinking about these things and
recording that this is how we achieve our
goals of actually making change happen,
which is something we do at Midwest
Games.
Image from Oxygen Not Included game
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EDUCATION
IN GAMING
Section
03

7273
The gamification market is expected
to experience significant growth,
with projected growth from $9.1 billion
in 2020 to $30.7 billion by 2025.
North America will remain the dominant
region, while Europe is also poised
for substantial growth supported by local
governments and key stakeholders.
growth for the gamification
market from 2020 to 2025
>$ 20B
Gamification
market,
by region
Source: MarketsandMarkets Analysis
EXPLORING
ACADEMICS
AND GAMING
Academic market institutions are highly fragmented, with
many smaller players competing extensively. Regionally,
the US witnessed the largest number of players operating
in the market, followed by China. Immense investment
in technology and education in these countries further
drives the market to reach its ultimate potential.
Edutainment Market
Concentration
Source: Mordorintelligence
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The average salary of game developers
in the US increased from $88,010 in 2023
to $91,009 in 2024. The approximate hourly
rate for a game developer is $43.75.
increase in avg salary for game developers from 2023 to 2024
$ 10K
Average game
developer salary,
2016 to 2024
Source: Zippia
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ALTERNATIVE EDUCATION
FOR THE WIN
While traditional art degrees continue
to hold value, there’s a growing emphasis
on interdisciplinary programs, alternative
learning, and experiential education that
bridge the gap between artistic skill,
management prowess, business savvy,
and technical expertise. This change
emphasizes more adaptable and accessible
learning pathways for today’s aspiring
video game professionals.
Among the video game industry’s most
popular approaches to learning
are edutainment and online academies.
The learning landscape for video game
artists has undergone a significant
transformation in tandem
with technological advancements
and the gaming industry itself.
Edutainment:
Serious fun
The edutainment industry
is expected to reach a market size
of $2.58 billion in 2024. And with
a predicted impact extending
beyond the next decade,
projections suggest it could surpass
$11.52 billion by 2034.
While North America leads with
its strong infrastructure, resources,
and investment in educational
entertainment, Europe shows
steady growth driven by a focus
on lifelong learning and technology
in education. Additionally, the Asia
Pacific region is primed for
explosive growth due to its young
population and government
investment in education with
a focus on improved learning
outcomes.
market size for
edutainment in 2024
$ 2.6B
MASTERING GAME
INDUSTRY SKILLS
WITH ONLINE
AND ALTERNATIVE
LEARNING
The video game industry thrives
on the intersection of creativity
and technical expertise. Traditionally,
aspiring game developers and artists
have pursued degrees in computer
graphics, coding, animation,
or game design.
But, while a formal degree can be advantageous, it’s not the sole
path to success. The games industry is known for its openness
to diverse talent pools, recognizing that exceptional skills
(including financial, operational, and management expertise) can
be acquired through various avenues. Many game developers
have built flourishing careers through self-directed learning,
online academies, remote courses, and gaining practical
experience in the field.
Ar ticle
01
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Online learning:
Global reach
Online university education was
the leading segment in 2023, generating
a revenue number of US$103.8 billion.
Online education market
revenue, 2017 to 2027,
in billion dollars
Source: Statista
The edutainment market is on a clear
upward trajectory, with a significant
impact expected well past 2034. Analyst
estimates suggest the market will reach
$2.5 billion by the end of 2024 and could
balloon to $11.5 billion by 2034. This
translates to a promising Compound
Annual Growth Rate (CAGR) of 16.1%.
This growth is primarily driven by
increased investment from major players
in the education and gaming industries.
Edutainment
market growth
Forecasted CAGR
of Edutainment, 2024-2034
Source: Future Market Insights Inc.
Source: Future Market Insights Inc.
CAGR of edutainment market
for the next 10 years
16.1 %
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MOOCs are affordable and accessible, of ten created by top
universities, and cover a wide range of topics. This allows game
developers to gain new skills or dive deeper into existing ones,
all at their own pace.
But MOOCs are just one piece of the puzzle. All sectors of online
education are also getting a major tech upgrade. Virtual reality
(VR), artificial intelligence (AI), and even gaming elements
(gamification) are being used to make learning more engaging
and interactive. Imagine practicing 3D modeling techniques in VR
or receiving personalized feedback from an AI-powered tutor.
While edutainment and online learning benefit all industries,
the professional video game world also recognizes the need
for continuous learning. Robust online academies are rising
in prominence by partnering with leading companies to offer
an extended learning program. These 24/7 accessible platforms
provide video game developers, designers, artists, and game
leadership a path to staying relevant and competitive
in a fast-paced industry.
Course
distribution,
by subject
Massive Open
Online Courses
(MOOCs)
Source: Statista
The way we learn is evolving, and the video game industry
is no exception. We’re seeing a surge in Massive Open Online
Courses (MOOCs), with revenue expected to grow at an annual
rate of 8.56% from 2024 to 2029, reaching a projected market
volume of $279.3 billion and an estimated number of 1.12 billion
participants by 2029 . The online university education market
is projected to reach $120.7 billion in 2024, with the United
States generating the most revenue globally, estimated
at $87.5 billion in 2024.
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SHAPING
THE FUTURE OF GAME
DEVELOPMENT
A core strength of these platforms
is their commitment to accessibility.
Many are meticulously craf ted to
bridge the gap between business
knowledge and the game industry’s
practical demands, providing
professionals with invaluable insights
into the industry landscape. A focus
on inclusivity ensures that anyone
with a passion for gaming has
the opportunity to hone their skills
and turn their aspirations into reality,
fostering not only business savvy but
also a deep understanding of current
trends and challenges.
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WHAT DOES
THIS MEAN
FOR THE
INDUSTRY? Enhanced skill
development and
industry readiness
The rise in online learning platforms tailored for game
development fosters continuous skill enhancement among
industry professionals. Game developers can access specialized
training on evolving technologies, tools, and methodologies
relevant to game design and development. This ongoing
education ensures that professionals remain competitive and
adaptable. And as more individuals gain industry-specific skills
through alternative learning pathways, the talent pool becomes
more robust and diverse.
Continuous learning
and professional
development
Online learning academies are shaping the future of game
development by nurturing budding talent into skilled creative
leaders. These future leaders will be equipped to tackle all
aspects of the game industry, from craf ting effective marketing
strategies and maximizing revenue through strategic
monetization to ensuring distribution reach and profitability. This
empowers them to drive innovation, create fresh intellectual
properties, and transform a passion for video games into
thriving, sustainable businesses.
1
2
Average game developer salary,
2016 to 2024
Source: Zippia
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INFLUENCERS
IN GAMING
Section
04

89 88
In 2024, the influencer
industry is projected
to grow to a value
of $24 billion as
par tnerships between
brands and content
creators continue
to evolve.
Source: Statista
Influencer marketing market size
worldwide from 2019 to 2024
THE IMPACT
OF GAMING
INFLUENCERS
The value of the global influencer market has tripled since 2019,
reaching $21.1 billion in 2023. Marketers are continuing to invest
in collaborations with prominent social media figures to appeal
to the millions online browsing social media for entertainment,
ideas, and recommendations.
Influencer
marketing
worldwide,
2019 to 2024
Source: Statista
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Guest
Column
POLMARTIN
MAHMOUD ALYALDANI
Youtuber – Shadow Fox BG, Websi te
I’ve been creating
videos for four years,
primarily targeting
a younger audience
with content focused
on Minecraf t, Roblox,
and GTA.
To date, I’ve amassed 110,000
subscribers on my channel and my
audience mainly consists of kids
aged 7-14. I interact with them via
YouTube videos and comments.
If I want to share personal moments,
I turn to Instagram posts and stories.
Aside from YouTube, I also use
Instagram. I’ve tried TikTok,
but it’s not for me, and I’ve used
Twitch in the past, but I prefer
creating content and occasionally
streaming on YouTube. My average
video runs for about 20-40 minutes,
while streams can last 2-3 hours. While I’m an independent influencer,
I occasionally collaborate with
agencies that connect influencers
and sponsors. Whenever I’ve worked
with them, we’ve negotiated a fixed
price for each project.
YouTube has been a great platform
for me, especially for longer videos
that generate a lot of views. These
videos contain more ads and,
as a result, generate more revenue.
If a video gets demonetized, I usually
look for a video that gets a lot
of views and find a sponsor for it.
Promoting games on my channel
is relatively easy because my viewers
trust my opinions. If they know
I enjoy a game, they’re likely to try it.
I think when kids are your fans,
they’re likely to try what you’re
promoting because they aspire
to be like you in some ways.
People trust influencers for their knowledge,
transparency, and authenticity. According to a Linqia
sur vey , 40% of respondents said that they increased their
budgets in 2023, compared to 2021.
Source: At t ro c k
How did influencer
marketing budgets change
in 2023 vs 2021?
Influencer marketing platforms have also
grown, rising from a value of $15.2 billion
in 2022 to $17.4 billion in 2023. Creators
use these marketing platforms to track
analytics, find new clients, and manage
brand relationships.
growth of influencer marketing
platforms from 2022 to 2023
$ 2.2B
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Marketers believe YouTube
to be a fertile advertising
platform for several
reasons. First, YouTube
influencer engagement
rates are among
the highest in the industry.
In 2022, mid-to-large
creators with 100,000
to 1 million followers had
a platform-best
engagement rate of 3.5%.
Second, influencers can
embed promotions
in longer-form 30
or 60-minute videos,
reaching thousands
of more viewers
at the cost of higher
production expenses.
Still, the most
advantageous aspect
of YouTube from a games
marketing perspective
is that gaming content
is one of the platform’s
most popular categories
of entertainment. In 2023,
“Entertainment”
and “Video Games” were
the second and third-most
popular categories
for YouTube Influencers,
with influencer shares
of 14.5 and 12.9 percent,
respectively. There’s great
potential to use YouTube
to meet gamers where
they prefer to watch
gaming content. Distribution of YouTube
influencers worldwide in 2023,
by category
Source: Statista
THE POWER OF
INFLUENCERS
Influencer marketing is nothing new.
Influencers have built followings on nearly
every social media platform and receive
thousands, hundreds of thousands, or
even millions of views on content ranging
from videos to tweets, blogs, and more.
With the influencer industry poised to grow even stronger over
the next few years, it’s worth investigating how influencers can
precisely target gamers and how to create lasting partnerships
with the right creators.
Leverage
the right platform
for your game
Gaming content has found a welcome home
on each social media channel, from long-form
reviews and walkthroughs on YouTube to highlight
reel-style compilations on TikTok. However,
in the current market, YouTube may be the most
promising avenue for gaming-specific influencer
marketing.
3.5 %
engagement rate
of mid-to-large creators
on YouTube in 2022,
the best on the platform
Ar ticle
01
How they grow games from local to global
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Traits to look
for in an influencer
Influencer best
practices
Source: 80LV
Developers considering leveraging gaming
influencers to market their games are likely to use
an influencer marketing platform to connect with
a creator partner of choice. These platforms are
usually tailor-made for influencers and have
built-in tools for managing various aspects
of their content creation business.
Influencer marketing platforms aid both the
brands and the creators, offering services like
client discovery, campaign management, and
per formance measurement. Practical tools these
platforms provide help creators maximize their
reach and understand audience preferences.
Engagement data, options for content
optimization, and solutions for streamlined
workflow are all top considerations for influencers
seeking a home base to connect with potential
clients.
The Xsolla Partner Network (XPN) platform offers
considerable benefits to content creators and
game developers. Built specifically with gaming
content and gaming audiences in mind, XPN is an
affiliate marketing engine that brings top gaming
influencers and brands together. With built-in
tools such as per formance analytics and
customized landing pages, the XPN platform is a
choice destination for content creators and the
per fect destination for every game developer’s
marketing campaign.
The tools of the trade:
How effective influencer tools
can be a difference-maker
Common tools
and mechanics used
by influencers
Source: 80LV
With more and more bright, creative individuals entering
the content creation scene, how do you determine the best fit
for your game’s promotion? Two of the most essential qualities
an influencer can demonstrate to resonate effectively
with audiences are honesty and relevance.
Tools like Rainmaker can be a game changer when searching
for the right creator to promote a game. Rainmaker’s data
stream allows developers to track the viewership and awareness
metrics of creators working on their campaigns. Additionally,
it’s a way to discover influencers who are generating content
for competitive or complimentary games, which can open new
partnership possibilities with those creators.
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Investing in tools
for influencers
is a win-win
Content creation platforms and tools benefit
the influencers as well as the brands they
promote. Influencers equipped with tools from
platforms like Xolla Partner Network drive higher
interaction, increase audience loyalty, and boost
conversion rates for the brands they represent.
This is especially true in the gaming industry,
where influencers have 53% more loyal audiences
compared to other industries.
The future
of influencer
marketing
in games is bright
The influencer marketing industry
and the popularity of games as entertainment
are on the rise. Gaming-specific influencers
are already among the most popular content
creators on YouTube, and more social media
platforms are sure to follow.
1
2
53 %
more audience
loyalty
in gaming,
compared
to other industries
WHAT DOES
THIS MEAN
FOR THE
INDUSTRY?
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Short-form media
can be a cost-effective
and impactful approach
Although YouTube is still one of the best advertising platforms
for its long-form formats and gaming audience, it may be
relatively expensive considering the high production costs.
Mega-influencers with 9-digit follower counts, like PewDiePie,
have led to increasing prices for sponsored YouTube videos.
Videos can start at as much as $2,500 and quickly go up
thousands of dollars depending on the influencer’s follower
count. This is why influencer endorsement on apps like Tik Tok
and Instagram have proven to be an immensely cost-effective
form of social media marketing, with the average minimum price
per post of macro-influencers with 500,000 to 1 million followers
being $150.
3
$ 2 500+
$ 150+
per video: avg cost of long-form
influencer media
per video:
avg cost
of short-form
influencer
media
Sector loyalty based
on top influencers
compared to average
loyalty on YouTube
Source: Tubular labs
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100101
Guest
Column
ALEKS
VASILEV
Youtuber –
GNRAK , Twitter
I’ve tried various streaming services
to boost monetization. For instance,
I’ve been double-streaming on
YouTube and TikTok. This approach
has potential for the streaming
industry since it offers audiences
the flexibility to choose their
preferred platform.
Monetization programs for influencers
vary greatly. My former contract,
for example, paid me for a set number
of hours streamed. Though while
the monetization was good for me,
it wasn’t profitable for the company.
On the other hand, TikTok’s model
only allows influencers to keep 30% of
donations, so it isn’t a large sum, but it
attracts a lot of viewers. The platform
is highly browsed, and streamers
can easily gain visibility there. I’ve noticed that many influencers
are hesitant to reach out to companies
for collaborations or alternative monetization
methods. Instead, they of ten prefer
to capitalize on a product itself, offering
merchandise, specific foods, video editing
services, or other products that appeal
to their audience.
But to me, building relationships with my
viewers, who spend hours on my live
streams almost daily, is a crucial aspect
of my work. This dynamic is specific
to the streaming industry and enables
users and bloggers to learn more about
each other on a deeper level.
Can you give us
some insight
into monetization
for influencers? What makes
big influencers
financially
successful? Meanwhile, Twitch splits monetization
products 50/50 but requires
streamers to bring their own
audience. And I firmly believe that
Twitch could better allocate
its advertising budget by sharing
it with people who can attract their
friends to the platform through
a referral program. I’d love to see
more creator-based programs that
incentivize content creation both
on and off the platform. This could
help attract new audiences.
YouTube’s monetization model is also
unique since creators keep 80%
of their revenue and pay 20% in taxes.
Despite some issues with this model,
I appreciate the ads on YouTube
for their potential benefits.
I’ve noticed that people typically
don’t visit YouTube specifically for live
streams. Audiences seem to prefer
well-edited content over spending
hours on live streams, so perhaps
the platform could benefit from some
changes in this area.
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102103 THE XSOLLA REPORT
ABOUT XSOLLA 103
ABOUT XSOLLA
Xsolla is a global video game commerce
company with a robust and power ful set
of tools and services designed specifically
for the industry. Since its founding
in 2005, Xsolla has helped thousands
of game developers and publishers of all
sizes fund, market, launch and monetize
their games globally and across multiple
platforms. As an innovative leader in game
commerce, Xsolla’s mission is to solve
the inherent complexities of global
distribution, marketing, and monetization
to help our partners reach more
geographies, generate more revenue, and create relationships with gamers
worldwide. Headquartered
and incorporated in Los Angeles,
California, with offices in London, Berlin,
Seoul, Beijing, Kuala Lumpur, Raleigh,
Tokyo, and cities around the world, Xsolla
supports major gaming titles like Valve,
Epic Games, Take-Two, KRAFTON, Nexters,
NetEase, Playstudios, Playrix, miHoYo,
and more.
For additional information
and to learn more, please visit:
xsolla.com
THE XSOLLA REPORT
CONCLUSION 102
CONCLUSION
Driven by growth in the indie game sector,
the rise of online learning programs
tailored to the games industry, evolving
gamer behavior, and influencers’ impact
on game success, changes in the games
industry are creating new avenues
of opportunity for developers, investors,
publishers, and gamers alike.
Indie games accounted for 31% of all
Steam revenue last year, highlighting
the robust potential for independent
developers. The democratization of game
development has empowered a new
generation of creators, resulting
in a diverse array of innovative games.
Educational programs have also emerged
as crucial components in nurturing
a skilled, diverse, and future-proof
workforce for video game development.
Online learning platforms have surged
in popularity, with an increase
in enrollment for game design courses,
underscoring the demand for flexible,
accessible education that equips aspiring
developers with essential skills.
Finally, influencers’ ability to engage large,
dedicated audiences has proven to be
a highly effective promotional strategy
for game developers. Influencers drive higher interaction, increase audience
loyalty, and boost conversion rates
for the brands they represent, which
is especially true in the gaming industry,
where influencers have 53% more loyal
audiences compared to other industries.
Strategic planning and adaptability
are keys to success in the games industry.
At Xsolla, we are committed to navigating
these trends and supporting our partners
in leveraging these opportunities
and innovating new ways to propel
the gaming industry forward.
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INTRODUCTIONINTRODUCTION
INDIE GAME GROWTH INDIE GAME GROWTH

XSOLLA.COM