How to run an indie game studio: Part 1, What is a studio?

Running an indie game studio is a complex endeavor. Many studios only manage to release one game, and even then, it's unlikely to be a massive success. Founders may feel compelled to invest everything they have into their game in hopes of increasing their chances of success. However, it's crucial to remember that building the studio itself is equally important. This means establishing the structures and processes that will help the studio function effectively in the long term.

As you embark on the journey of creating a game, you must also focus on building the studio. This raises questions such as where to start, how to balance game development with studio management, and whether this approach might lead to a corporate-like environment. These questions are valid because running a studio isn't intuitive.

Fortunately, the core principles are straightforward. Over the course of five articles, we'll explore a framework for indie studio management called FIRM, which stands for Future, Issues, Rocks, and Meetings. These four pillars drive focus, alignment, and accountability within the studio.

Before delving into the FIRM framework, it's essential to understand what a studio is and how it relates to your own studio. When asked what a studio is, responses may vary among different studios. However, the answer matters because it shapes your perspective on your own studio and influences the elements you include or exclude when making decisions.

In essence, a studio is an entity that creates a product or service – in our case, a game – and offers it to customers or players in exchange for money. The goal of the studio is to create more value through selling the game than it costs to make it, ensuring the studio can continue operating and producing more games.

To achieve this, a studio must focus on three core elements: the team, the game, and distribution. As the studio lead, you must build a great team, create exceptional games, and ensure these games reach the target audience through effective distribution and marketing. According to industry experts like Jason Della Rocca, these three elements determine how an investor values your studio.

The stronger your team, the stronger your intellectual property (IP), and the larger your community, the more likely you are to secure investments.

In summary, your role as a studio founder is to consider not only the game but also the team that creates it, the audience that will play it, and the methods for getting the game into the hands of the players. Neglecting any of these elements will disrupt the entire process. By taking a holistic approach and integrating these elements, you can create a mini operating system to effectively run your indie studio.