Many gamers have been watching over the last decade as independent game studios have released many titles that either outperform or outlast much larger AAA studio productions. Unlike the giant AAA studios that typically use $1 billion + marketing campaigns and photo-realistic graphics, the independent studios succeed with smaller teams, speed, and a strong sense of focus and personality.
Ask someone who tracks independent gaming trends in 2026 and you’ll find that fans of the trend remember games like Hollow Knight, Hades, and Undertale — not because of the largest budget — but because each of those games provided a unique experience. Those games all feel thoughtful; there is no unnecessary feature included solely to provide a marketing bullet point. Everything in the game was thoughtfully planned.
While large publishers still make up the majority of the revenue in the gaming industry as a whole, the passion of the fans, the loyalty of the fans, and some of the most innovative ideas in gaming right now are coming from smaller teams.
From AAA Dominance to Indie Gaming Success
Large AAA studios have dominated the gaming industry by being large. It took hundreds, or even thousands, of developers to create the expansive worlds and cinematic storytelling that we see in AAA franchises like Call of Duty and Assassin’s Creed. These types of franchises have become an annual tradition, and it was the sheer number of developers working together that gave the franchises the power to achieve this level of success.
However, along with this success came a lot of pressure to deliver. Shareholders wanted consistent results, so the amount of time spent developing a game grew significantly. We’re talking anywhere from two to six years of development time (and often more). And, of course, with great risk comes a shrinking appetite for risk.
This type of environment makes experimenting with new game mechanics difficult. New mechanics had to demonstrate a clear financial reason for taking on the risk. So, safe design became the norm.
Eventually, players began to realize the similarities between AAA games. They all had open worlds with similar icons. All of the games had progression systems that were designed to keep players engaged. And some of the monetization structures in the games seemed to be designed first and foremost with profit in mind, not the best gameplay experience.
On the other hand, the small studios were quietly producing games that felt different.
Games like Deep Rock Galactic, produced by Ghost Ship Games using a team of fewer than 40 people at launch, created cooperative systems that encouraged players to engage in natural teamwork. The game’s procedural mission system provided endless replay value, along with a healthy dose of humor, and continued to update the game frequently to keep the community engaged. In fact, the developers of Deep Rock Galactic saw the game as a collaborative effort with their players, and treated it as a “living” game that would continue to evolve and receive updates.
AAA Studios Still Produce Excellent Games
While AAA studios are still capable of creating outstanding games, they are no longer the only ones producing successful games. Smaller studios have found success by doing things in ways that larger studios cannot.
Why Indies Will Continue To Thrive in 2026
There are several structural changes in the gaming industry that have reduced the barriers to entry for indie developers, and increased the visibility of their games:
Games Engines Provide a Foundation For Development
Prior to recent advancements in game engines, developers needed to create the foundational elements of their games from scratch. This process limited the number of developers that could effectively enter the industry. However, modern game engines like Unity and Unreal Engine provide a solid foundation for developers to build upon. Many developers now prefer to use game engines to provide a platform to develop their games. The Godot engine has seen a significant increase in popularity, particularly among open source developers.
Digital Distribution Provides Access To Global Audiences
In addition to providing a foundation for game development, game engines also provide a means for developers to distribute their games to global audiences. No longer do developers need to worry about manufacturing costs, nor do they need to negotiate with retailers. Digital storefronts such as Steam, Itch.IO, and console marketplaces allow developers to reach a global audience instantaneously.
Improved Discovery Systems Help Developers Gauge Interest Prior To Release
Discovery systems have also improved dramatically in recent years. While Steam has historically provided wish lists, which are useful indicators of interest in a game prior to its release, discovery systems have improved to the point that developers can gauge interest in their game months or even years prior to its release. Additionally, early access models provide developers with a way to fund development, and build engagement with their community, simultaneously.
Social Media Platforms and Streaming Platforms Provide Additional Visibility
Finally, social media and streaming platforms have given developers a way to promote their games to a wider audience than ever before. A single viral gameplay clip can potentially generate millions of views overnight, regardless of the developer’s marketing budget.
All of these factors have come together to create a situation in which a game produced by a small team can compete directly with AAA releases.
Advantages of Working With a Small Studio
Working with a small studio provides a number of advantages. For instance, because there are fewer members on a team, decisions are typically made more quickly, and communication is generally easier. Because of the smaller size of the team, creative intent is also easier to maintain.
As mentioned earlier, creative freedom is a key element of what makes small studios so effective. Because they typically answer to only themselves, and therefore are not bound by the same restrictions as larger studios, they can pursue ideas that would likely be rejected by larger studios, due to concerns regarding risk.
Toby Fox’s Undertale is a prime example of this. As an example, the game allows players to complete the entire game without having to kill a single enemy. The combat systems in the game reward empathy over aggression, and are completely opposite to what players expect from traditional action-adventure games. Undoubtedly, no large publisher would have greenlit this idea without major hesitation. However, the game went on to become one of the most influential indie developer wins of the past decade.
Another aspect of creative freedom is allowing developers to express their own personal experiences in their games. When developers create games that are based on their own experiences, players can tell. Players know when they are playing a game that is emotionally authentic, and they tend to be loyal to those developers.
Agility And Rapid Iteration
Speed is another key factor that allows small studios to excel. Unlike the development pipelines of AAA studios, which are more akin to industrial processes, small studios are able to iterate on their games constantly.
For instance, a designer might notice that something feels off in the game, and they can immediately adjust the values and test the game again. This process can be repeated multiple times in a day, and the designers can get immediate feedback from testing.
Because of this ability to quickly iterate, small studios are well-suited to creating games that are designed around rapid prototyping. Designers can experiment with different mechanics and designs, and the game can evolve organically, rather than through rigid planning. This agility is especially valuable during live development phases, such as early access.
Developers can respond to player feedback in a matter of days, rather than weeks or months.
Players notice this type of responsiveness, and it helps to build trust with the developers. If players feel that the developers are listening to their feedback and responding accordingly, they are far more likely to feel invested in the game.
Additionally, this agility also eliminates the sunk cost fallacy. Large studios may choose to continue to invest money in a flawed system simply because abandoning it would result in a huge loss. Small studios, on the other hand, can abandon a system without suffering financially.
Tools Empowering Independent Developers
In the past, creating a video game was a highly technical and costly endeavor. Today, thanks to advances in technology and the availability of affordable tools and software, creating a video game is a relatively accessible and affordable endeavor.
Developers today have access to tools that previously required entire engineering teams to build.
Game Engines Provide Rendering, Physics, Audio, Animation, Networking, and Cross-Platform Support
Modern game engines eliminate the need for developers to create the underlying technology that enables the game to run. Developers can focus on gameplay, rather than spending countless hours building rendering pipelines.
The Godot Engine Is An Example of a Popular Open Source Game Engine
The Godot engine is an open-source game engine that is gaining popularity among developers. One of the reasons why it is growing in popularity is that it does not charge developers any licensing fees.
Access to Asset Marketplaces Has Accelerated Production Time
In addition to providing the underlying technology for the game, many game engines also include a wide variety of pre-built assets that developers can use to save time and money. Developers can buy or license these assets for a fraction of the cost of building them from scratch, and then focus on the gameplay design.
Middleware Solutions Simplify Complex Systems
Middleware solutions also provide developers with a means to implement common game systems such as multiplayer networking, procedural generation, and AI behavior.
Distribution Tools Provide Instant Updates and Real-Time Player Behavior Data
Finally, distribution tools provide developers with a means to easily distribute their games to a global audience. Additionally, many distribution tools provide developers with analytics data that shows real-time information about player behavior.
Collectively, these tools have empowered individual developers and small teams to build games that truly reflect their visions.
Success Stories That Have Changed Expectations
The success of various individual titles illustrates how small studios can now successfully compete against much larger AAA studios.
Supergiant Games and Hades
Supergiant Games developed its reputation through a series of gradual releases. Each release helped refine their strengths in areas such as art direction, tight gameplay, and emotional storytelling. Supergiant’s Hades marked a turning point.
With a team of approximately 20 people, Hades combined elements of roguelikes with rich narrative integration. Characters in the game react dynamically to player actions. The story progresses through repeated runs rather than linear sequences.
Supergiant also utilized early access to encourage player feedback. Players provided input that shaped both balance and pacing.
At the time of its release, the game felt polished and responsive. It went on to sell millions of copies and win numerous “Game of the Year” awards. Perhaps more important than that, however, it demonstrated that small teams can compete directly with AAA giants in terms of both quality and cultural impact.
Team Cherry and Hollow Knight
Perhaps the best example of the success of indie games is Team Cherry’s Hollow Knight. Developed primarily by three people, the game contained vast amounts of exploration, precise combat, and atmospheric storytelling.
Every area in the game had an identity, and the world felt crafted by hand rather than generated procedurally.
Player enthusiasm for the game was extreme. Word-of-mouth marketing games like Hollow Knight thrive because players feel compelled to share their discoveries.
The game was successful long-term, and years after its initial release, it is still attracting new players.
Ghost Ship Games’ Deep Rock Galactic and Cooperative Evolution
Ghost Ship Games took a different approach to cooperative gameplay. Rather than forcing players into specific roles, Ghost Ship created systems that encouraged cooperation naturally.
The procedural nature of the game’s environments provided endless replay value. The humor in the game helped create memorable moments. Regular updates helped keep the community engaged.
Throughout the game’s development, the developers communicated openly with their players. This openness helped build a strong sense of loyalty.
Ghost Ship Games’ continued success with Deep Rock Galactic has shown that community-driven games can outlast much larger competitors.
Building Loyal Fanbases
Small studios consistently follow a few principles that help build strong connections with their players:
- Open communication channels: Use Discord and developer blogs to communicate with your players.
- Frequent updates: Update your game regularly to show your players that you’re listening to their feedback.
- Transparency: Share your development process with your players, including setbacks.
- Treat players as collaborators: Involve your players in the development process.
- Focus on long-term trust: Don’t try to monetize your players in the short term. Build a relationship with them, and they’ll be loyal to you for years to come.
By treating your players as active participants in your game, you can build a community that is dedicated to your game.
Creating Economically Sustainable Games
AAA games often attempt to gain attention through the sheer size of their maps, or the quantity of content that they contain. Smaller studios, however, focus on creating dense experiences, and often accomplish more with less.
Rather than creating large worlds filled with repetitive content, smaller studios create smaller environments that contain a wealth of engaging interaction.
Creating smaller, denser experiences reduces development costs while improving the quality of player engagement.
Additionally, players rarely complain about the length of a game, if the game is memorable.
Sustainable Development Practices
One of the main challenges facing small studios is achieving financial stability. Long development timelines can lead to uncertainty about revenue. Fluctuations in revenue can occur unexpectedly.
Small studios are also susceptible to burnout. Because of the extended hours worked by the staff, and the overlapping responsibilities of the staff, small studios can quickly become overwhelmed.
Visibility for small studios remains a challenge. There are thousands of games released each year, and competing for visibility can be extremely challenging.
Achieving success requires not only quality, but also timing, and visibility. Sustainability for small studios relies on careful planning.
Strategies to Improve Survival Odds
Several strategies exist to help improve the chances of success for small studios:
- Realistically scope project according to team size
- Use early access to generate revenue during development
- Create reusable tools and workflows
- Maintain a reasonable team size to preserve agility
- Diversify revenue streams when possible
By implementing these strategies, small studios can increase the likelihood of surviving long enough to achieve multiple releases.
Indie vs AAA in the Future
AAA studios will always be necessary for creating large-scale experiences that are impossible for small teams to replicate. However, small studios will continue to drive innovation. They are always pushing the boundaries of what is possible in game design. They are constantly trying out new ideas and refining existing mechanics. Successful innovations often move upwards. Larger studios begin adopting concepts developed by indie developers. The combination of small studios pursuing creative endeavors and large studios focusing on scale produces a positive outcome for players. Small studios offer creativity and large studios offer scale. The lines between indie and AAA are continuing to blur. Some indie developers are becoming larger in size while remaining independent. Technology will continue to empower individuals and small teams, making the indie space more vibrant. Large studios will still be present. However, increasingly, the most memorable experiences
