Market

This section, unlike the rest, focuses on your game(s) in-development rather than your studio overall. No matter how important your mission is, it can’t overcome a lack of market knowledge and real demand for what you’re creating.

Who will buy your games? Get to know your target audience. What are their preferences, needs, and desires?

What external validation drives your decisions? Before launching, test your concept – even on a small scale. Conduct beta tests, gather feedback via surveys and interviews, and adjust accordingly. Describe your testing strategy here.

Include indicators that show demand. A thorough market analysis of your currently in-development game will provide insights into the demand for your style, genre, and price point. Look for trends, surveys, or studies that indicate a gap in the market that your studio can fill. (If you’re a Weird Ghosts investee, we have an article and template for market analysis on our Vault site.)

Articulate what sets your studio apart. In 2022, over 12,000 games were released on Steam1. Why should players choose your games? What experiences or narratives do you offer? How do you engage with your community, and why should players return to your games? What is special about your studio?

Include rationale for your pricing strategy. Lastly, your pricing strategy should reflect the value you offer and be sustainable for your studio. It’s essential to balance accessibility to your audience and ensuring you’re making enough so that you can continue to deliver impact.

Reflect: Does our market analysis consider audiences or segments that align with our social goals? How does our business plan address these segments’ unique needs or preferences?

Example Market Analysis Summary:
Quixelate’s primary audience consists of players who appreciate narrative-driven experiences with a focus on diversity and inclusion. Our market research indicates a strong demand for such games, with an average sales estimate of approximately 124,751 units per title on Steam alone. The average net revenue from Steam sales for games in our genre and style stands at a promising $1,447,906. This is further validated by the success of titles like “My Time at Portia,” which has over 29,000 reviews and an estimated 1 million sales, translating to a net revenue of over $15 million on Steam.

market analysis

Footnotes

  1. Steam Market Data 2022