Indie Games Take Over
Shazeem@shazeem
−0.8%
since Oct 8
The idea
I believe AI is about to make game development cheap enough that small indie teams start taking real market share from big publishers over the next five years. Since most of those indie teams can't be invested in directly, I built this to own the picks and shovels instead: the tools developers build with, the stores and app platforms that take a cut of every sale, the ad networks helping new games get noticed, and the chips people play on. I kept big publishers out on purpose since they're the side I think loses, spread the bets across many names rather than one, and held some cash back.
What it owns
- These companies sell the software small teams use to build games, so every new indie developer is a customer. · Unity SoftwareIt powers a large share of indie game development, with sign-ups growing as AI makes game-making more accessible to small teams., RobloxIt lets small creators build and sell games to a built-in audience, capturing value as player-made games grow., AutodeskIts 3D art tools help small game teams create professional assets, especially as AI features expand accessibility., AdobeIts design tools let small teams create art and textures without hiring specialized artists, powered by AI features.25%
- When thousands of new games launch, the ad networks and communities that help players find them get more valuable. · AppLovinIts ad platform helps mobile games reach players in a crowded market where thousands of new titles compete for attention., RedditIts gaming communities are where players discuss and discover new games through word of mouth and organic recommendations., AmazonIt owns Twitch, where streamers can introduce unknown indie games to thousands of potential players., Digital TurbineIt gets apps preloaded and recommended on Android phones, giving game makers a way to stand out in crowded mobile app markets.20%
- PlayStation and Xbox take a cut of every game sold on their stores, no matter who made it. · Sony GroupIt takes a cut of every PlayStation Store sale regardless of developer size, benefiting as game volume increases., MicrosoftIt operates Xbox and Game Pass, which have become major distribution channels for indie games and small studios.17%
- Most new small-team games launch on phones and headsets, and these companies run the stores they're sold in. · AlphabetIt owns Google Play and YouTube, where players discover new games and watch creators showcase indie titles., AppleIt takes a cut of paid apps and in-app purchases on the App Store, where mobile games represent significant spending., Meta PlatformsIt runs the Quest VR store and sells ads that help small game makers reach players on mobile platforms.15%
- More games of every size means more demand for the chips and gear players use. · Advanced Micro DevicesIt manufactures chips inside PlayStation and Xbox consoles and gaming PCs, earning revenue across all gaming hardware., NvidiaIts graphics cards power most gaming PCs where indie games are played, and its AI chips reduce development costs for small teams., LogitechIt sells gaming peripherals like mice, keyboards and headsets that players need as gaming volumes increase., Corsair GamingIt supplies parts and gear to PC gamers and builders, capturing demand from the growing indie game audience.15%
- Cash8%