How indie studios can survive industry volatility | Opinion

Indie studios are finding ways to survive in an unpredictable industry. Denis Fedorov, founder of Unfrozen, also leads Nova Assembly, a holding company that helps five studios share resources while maintaining their creative independence. Despite challenges like intense competition, funding difficulties, rising development costs, and financial risks, 2025 saw indie developers succeed commercially and critically.

Games like Clair Obscur: Expedition 33 and Kingdom Come: Deliverance 2 demonstrated that smaller teams can thrive with sustainable budgets.

However, many independent projects go unnoticed. In 2022, industry layoffs surged, affecting both major and small studios. A 2026 GDC survey found that 28% of respondents were laid off in the past two years (33% for US respondents), leading to a significant loss of talent and institutional knowledge. Declining revenue, restructuring, and higher development costs create a structural problem for single-project studios, as a single setback can devastate the entire team.

To improve their odds, indie studios should focus on resilience. Maintain a financial runway of at least 12–18 months, regardless of project performance. Use fast-iteration prototypes to validate ideas before committing full teams. A multi-project model doesn't mean working on two games simultaneously; start by testing new ideas while keeping the main project properly staffed.

Traditional funding methods, such as seeking publishers, are becoming less effective. Publishers are wary of investing in unproven projects and prefer those with established metrics and audiences. Indie developers now have alternatives like self-publishing, early access, and partnerships with dedicated indie funds like Outersloth. However, isolation can lead to a loss of perspective, making early feedback crucial for building a viable product.

Collaboration with other studios is essential. Studios can support each other during development, share expertise and tools, and provide honest feedback while preserving their own IP, team, and direction. Engaging with players early and often is vital. Early feedback helps identify weak points before they become costly production issues, and player reviews, testing, and early analysis should shape development priorities.

Shows and public demos remain effective ways to gather feedback and observe player behavior in real-time.

Ultimately, indie developers must find their unique selling point before starting to code. A game's core differentiator must be clear and compelling to stand out in a crowded market. Early marketing is essential once a hook is found to ensure the audience is ready when the game is ready. While layoffs may become inevitable, retaining experienced developers who form the core of the studio—preserving internal expertise, production continuity, and creative chemistry—is critical. In this new era of volatility, small studios must either adapt or leave the market.