Indie game revenue can be a tricky beast. You might think that making €4 million from a single game would set you up for life, right? Well, the story of Rise of Industry and its creator Alex Mochi proves that indie game revenue isn’t always what it seems on the surface.
This industrial tycoon game became a legitimate hit, selling over 350,000 copies across all platforms. But three years later, Mochi found himself not just broke, but €140,000 in debt. How does a successful indie developer go from millions in revenue to financial ruin?
The Reality Behind Those Big Revenue Numbers
When we hear about indie game revenue hitting the millions, it’s easy to get excited. But Mochi’s experience with Rise of Industry shows us exactly where that money actually goes.
Here’s how that €4 million broke down:
- Steam’s 30% cut: Gone immediately – that’s €1.2 million off the top
- Refunds: Another 10-15% for indie games according to industry standards
- Regional pricing differences: Lower prices in different markets
- Publisher’s share: Kasedo Games took their negotiated percentage
- Taxes: An estimated 10% based on worldwide regions
After all these deductions, the actual indie game revenue that reached Dapper Penguin Studios was around €1.5 million. Still sounds like a lot, but wait – there’s more.
Where Did All The Money Go?
Running a game studio isn’t cheap, even for indie developers. Mochi’s breakdown of expenses over four years tells a sobering story:
| Expense Category | Amount | Description |
|---|---|---|
| Team Costs | Over €1 million | Freelancers and full-time staff over 4 years |
| Operations | Remainder of €500k | Software, servers, hardware, taxes |
| Next Game Development | Additional costs | Recipe for Disaster pre-production |
By the time Rise of Industry was fully launched and they started working on their next project, Recipe for Disaster, they were already €100,000 in debt. By 2021, that debt had ballooned to €140,000.
The Publisher Deal That Changed Everything
Understanding indie game revenue means looking at publishing deals too. Mochi signed with Kasedo Games for what seemed like a reasonable arrangement:
- €75,000 advance payment
- 50/50 revenue split until first €100,000 was recouped
- 60/40 split in developer’s favor after that
For a new indie team, this looked like a win. But Mochi later questioned whether they even needed a publisher, given they had stable finances at the time.
The Desperate End: Selling IP for Peanuts
When financial pressure became unbearable, Mochi made a decision that still haunts the indie community. He sold the Rise of Industry intellectual property to the publishers for just €5,000.
Think about that for a moment. A game that generated €4 million in revenue, with a passionate fanbase and proven market appeal, sold for the price of a used car.
The IP was later used to create a sequel by a different team, launched without Mochi’s input despite his earlier pitches for a feasible follow-up.
What This Means for Indie Developers
Mochi’s story isn’t unique in the indie game world. Many developers struggle with the gap between gross revenue and actual take-home income. Here are the key lessons:
Revenue isn’t profit. That €4 million headline number sounds impressive, but after platform fees, taxes, refunds, and publisher cuts, the actual indie game revenue reaching developers can be less than half.
Ongoing costs are brutal. Even after launch, successful games require updates, patches, community management, and marketing support. These costs add up quickly.
Plan for the long term. The indie game market is hit-driven. One successful title needs to fund your studio through the development of the next game, which might take years.
Publishing deals aren’t always necessary. If you have stable finances, consider whether giving up revenue share is worth the marketing and distribution support.
Frequently Asked Questions
How much money did Rise of Industry actually make for its developers?
After all cuts, fees, and expenses, Dapper Penguin Studios received approximately €1.5 million from the game’s €4 million in total revenue. However, operational costs over four years consumed all of this, leaving them in debt.
Why did the Rise of Industry creator go broke despite the success?
High operational costs, including over €1 million in team expenses across four years, plus the costs of developing their next game Recipe for Disaster, consumed all revenue. The studio also continued supporting Rise of Industry with updates and expansions.
What percentage does Steam take from indie game sales?
Steam takes a 30% revenue share from all game sales on their platform. This is deducted before any money reaches the developer or publisher, significantly impacting indie game revenue.
Was the publishing deal with Kasedo Games fair?
The deal offered a €75,000 advance and eventually a 60/40 split favoring the developer. While reasonable on paper, Mochi later questioned whether they needed a publisher at all, given their stable financial position at the time.
How much did the Rise of Industry IP sell for?
Facing €140,000 in debt, Mochi sold the Rise of Industry intellectual property rights to the publishers for just €5,000 – a fraction of what the original game was worth.
What happened to the Rise of Industry sequel?
A sequel was developed by a new team using the IP Mochi sold. It launched without his input and received disappointing reviews, lacking proper testing, polish, and marketing according to industry observers.
What lessons can other indie developers learn from this story?
Key lessons include understanding that revenue isn’t profit, planning for long-term operational costs, carefully evaluating publisher deals, and maintaining financial reserves for multi-year development cycles between successful releases.
The Harsh Truth About Indie Success
Mochi’s experience with Rise of Industry reveals the complex reality behind indie game revenue. Success in terms of sales and critical acclaim doesn’t automatically translate to financial security.
The indie game industry celebrates the success stories, but rarely talks about what happens after the confetti settles. Development studios need sustainable business models that account for the realities of platform fees, operational costs, and the cyclical nature of game development.
For aspiring indie developers, Rise of Industry serves as both inspiration and warning. Yes, you can create a hit game that resonates with hundreds of thousands of players. But financial planning, cost control, and realistic expectations about indie game revenue are just as important as making a great game.
The next time you see headlines about indie games making millions, remember Alex Mochi’s story. Sometimes the most valuable lessons come from understanding not just how to succeed, but how success can slip away if you’re not prepared for what comes after.