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[reprinted from..]
Hello, my name is Ben Quintero and I am an addict. I am addicted to explosive gameplay, responsive and clever AI, and high production values. I am addicted to ingeniously designed one-off puzzles as much as I am cutting-edge visuals. I want the whole package in the games I play, but also in the games I create. As you might know, the latter is often the issue.
Games today are developed by a countless number of team members; quite literally in the sense that some development studios will simply list the entire company because they don't actually know who worked on the product. Above and beyond this is the long list of contractors and day-labor that probably didn't even make it to the credits but contributed their fair share of environment props and textures. Some developers are almost bashful to even say and often skirt around the discussion of exactly how many people it took to make their game.
As an independent, it is demoralizing to see this trend. What can one man do with his addiction except quit it all cold turkey? After recently watching the Doom postmortem on Gamasutra and recalling statements made about Wolfenstein, about entire levels being made in a day, I can't help but feel like I was born about 20 years too late. AAA games of today are very much about throwing in the kitchen sink; achievements, co-op, death match, bleeding edge visuals and special effects, face stabs, cut scenes, billions of weapons, more face stabs, and an insane library of animations and actions with unique rigs for every minotaur you slice open to every alien you stick a grenade to. *deep breath*
On the other side of this coin you have the more casual experiences, the Angry Birds and Cut the Ropes and something about an alligator in the sewers; yawn... To be honest I have never found myself actively wanting to play anything in the top 25 on iOS. As someone who really found his stride as a gamer on PC (and NES but come on who didn't own one of those) I've always enjoyed the deeper experiences. Now, as a developer, I see each year that passes as another year where the gap widens in the kinds of games that I like to play and the kinds of games I am able to make.
Though I had spent years making countless demos, mini games, and publisher pitches before this, 2009 was the year I finally decided to forget about publishers ship something. In 2009 I developed an arcade zombie shooter before I knew zombies were a thing. I just really liked Dead Rising at the time but hated the idea of getting pulled around a map, running errands under some artificial time limit. I just wanted to kill zombies. In spite of the fun gameplay and technical achievement of the games' dynamic lighting and shadowing engine, standing next to giants like Forza 3, Assassin's Creed, Uncharted 2, Resident Evil 5, Street Fighter 4, Modern Warfare, was I really going to even make a ripple in that ocean with a PC arcade shooter? This was easily three years in development since I did everything from the code to the art and the sound design.

Before discovering that XBLIG would ultimately turn out to be a failed experiment, I made a couple of games. Again, I aimed for the kind of games I liked to play, not really the disposable experience I think people were paying for on XBLIG. Though this game was still an arcade shooter, it was easily one of my more complex game designs. Unfortunately this game fell flat for a laundry list of reasons. Shooter fans didn't like the RPG progression. Others just played the hater card and called it a clone. Most seemed to think that $3 was extortion and proceeded to piss on it. The lack of exposure for XBLIG games was pretty much the nail in the coffin. This and another XBLIG title added up to another two, maybe three, years.
Right now I am working on another title (not an arcade shooter) with an even more ambitious scope and a story to tell, but I must admit that my passion has waned. In the span of the last seven years or so I've managed to "follow my dream" and develop a short list of games and even write a science fiction novel, and frankly it has only earned me a lot of hate mail and ascii art in the shape of a middle finger. It does make me question who I am doing this for sometimes, but it also exemplifies exactly why I wouldn't care to make a game that I don't want to play for myself.
I read articles and blogs from other indies who are falling over themselves with excitement because they made a profit of $5,000 maybe $10,000. That may sound like a considerable amount of money until you read the fine print; unemployed, living on spouse income or with parents, net profits don't account for any kind of salary to themselves and are over the period of as much as several years of sales across an array of platforms/ports. These are not exactly encouraging numbers. They are made even less encouraging when you understand the conditions under which that money was made. I don't know what to think or say when an Engineer with a college degree is ecstatic that he almost made as much as a part-time high school kid flipping burgers. At what point does it seem ludicrous to continue to follow your dreams?
It seems like the longer I take on a game, the more money I spend to develop it, the deeper I try to make it, the more spectacular the failure. I can only guess at why that may be true, but I know the root of my ironic little problem is that I am trying to make the games I like to play. I have no passion or even interest for mindless click-and-win games and not enough time in the day to make AAA games. Hard place... Meet rock.
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But you're right, games have gone to insane levels of art both in quality and quantity (with teams of 200-300). However, there are a lot of engines out there though and the good news is that small teams can produce nice stuff; it really comes down to how many art assets you can make with your team size though.
As you say, you (were/are) a PC gamer, and as I am one too, I believe that there are many PC hits from the 90's and early 2000's that could be quite doable by smaller teams now (or for tablets) etc... maybe we just need to wait for that blossoming to happen? Personally I think there could be a lot more cool strategy games... stuff like Black & White, Age of Mythology, Warcraft, and so forth.
A more realistic idea is to take a smaller game genre (say from the 90's as stated by Chris above) do a few unique twists to the game play and give the graphics a more modern (but within your budget) coat of paint. Make a game that stands out in some way from the derivative sequels that plague the AAA space.
As for AAA graphics, sure they are cool and I like you drool over them. However, as you well know stick to game play and favor that over AAA visuals, because in the end that is what brings in players. This is always a fine line, because you also can't have the visual fidelity of something that was made by a kindergarten kid and a box of crayons.
This is the case of the Legend of Grim Rock team. While they are nowhere near a AAA studio in terms of content, they still managed to make an enjoyable game within the scope of their abilities. To date they have sold 600K copies. For a AAA studio this a failure, but for a small team of 4 it is a qualified success. The reason is that the business model is different for a small man team than it is for a large AAA studio.
So take advantage of that business reality when making your game.
Also remember there is a market for different types of games. You like AAA games, well I am on the other end of the spectrum. I DO NOT like AAA games and avoid them. For me Legend of Grim Rock was great and money well spent.
Please don't take this post as me being a kill joy. I am just advising to stay away from AAA as it is unrealistic and not achievable by a one or even four man team.
Truer words have never been spoken.....
The only alternative is to make your studio successful enough to tackle projects like that on it's own, which is going to be a long road (then again, if THAT's what you want, you should go after it). Just remember that all good games have a solid foundation in their gameplay first--if you stripped out the bells&whistles Call of Duty would still be fun to play--and the truth is that most of these companies built themselves by iterating on titles that had simple but good gameplay and became franchises, which have continuously added more polish because each time the foundation was already there from the last title. Polish separates amazing games from great games, but gameplay separates great games from bad games and everywhere in between.
Q: "What would you do if you couldn't do this for a living?"
A: "I'd do this for not a living"
It sounds like you are in a down part of a cycle, and I hope you find your passion waxing soon.
http://www.youtube.com/watch?v=OeQwtQOFpAQ
The zombie game seems to not have been completed or released except for a demo on his webpage.
My game actually got a lot of praise at the time and saw over 100k downloads in the first few months. It was a free game that I had hoped to build interest in but I didn't realize that a bunch of other studios (large, funded studios) were working on similar ideas, shipping around a year after my game and with uncanny similarities. But what can ya do; right? It was an awesome experience to watch it blow up on the web, even if I didn't really make a dime on it...
It was a free download with option to donate... and well.. of 100k+ people I think like 2 ever ponyed up some cash. It was flawed to assume people's good will =).
Graphics haven't really been my problem though, my games just haven't had the "soul" yet since I started working on my own.
@Jane, I never really intended to compete directly with AAA games, but there are things that are just better in many high production games. I've played lots of indie PC games and they all have something dear and something very flawed. My envy of AAA has less to do with just pushing more polygons on the screen and more to do with the breathe and depth of the experience and the polish of the controls and mechanics. As you said, there is a fine line between acceptable art and kindergarten crayon art. The line of what is acceptable continues to climb however, and that is part of the problem. Atari sprites were like 8x8 pixels, NES sprites 16x16, SNES 32x32, and now? You just have to look at games like Shank or Skull Girls to see where sprite graphics are headed. Graphics aren't everything but the number of VVVVVV games to make headlines I can count on one hand... =( As important as gameplay is, most members of the press would flat out admit to being a little shallow about the types of games they give their attention to. With so many games fighting for attention, gamers and press have the freedom to have their cake and eat it to; amazing visuals AND gameplay.
@Eric, Though it is true that you can go work for a AAA studio and be a part of a small village of developers, you then become just a line in the credits. You lose your identity and ultimately are working on a vision created by someone else who themselves are likely answering to someone from focus testing. As team sizes grow the personal expression of individuals is often squashed with the exception of a few rouge snippets of code. I worked in AAA, and I would go back to it if the conditions were right, but I know exactly what I would be signing up for as well.
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The library of games today is so large that it is difficult to not be compared with the most successful of each genre. Want to make a shooter? How does it stand up to Call of Duty? What to make a 3rd-person action game? How does it stand up to Gears of War? RTS? Starcraft. Dungeon Crawler? Diablo / Torchlight. Side-scroller? Metroid/Castlevania/Metal Slug/Mario. Physics game? Portal/Limbo. Time manipulation? Braid. The list goes on. The game market has reached a point where people don't care if you are indie or AAA they just know what they like but this is a double edge sword. There is a balance of defining your game as something new without losing your audience for being too different. But of course the more familiar the game the more likely you are to be compared. I don't know if there is an answer to that, but I know that trying to beat AAA at their own game is not the answer.
Also comparing to the best is also subjective. For example, Torchlight while successful, in my opinion does not deserve to be put on the same level as Diablo as you have done in your post. The polish and depth of Torchlight is nowhere near as close to Diablo and yet it still sold well. So in this case your argument may or may not be valid as it is very subjective who you compare against and who is doing the comparing.
The same can be said of side scrollers. There are many games that are successful in this genre that can't hold a candle to Super Mario, Castle Vania etc. etc.
I do agree with you though the level is continuously rising. But this is true in all tech related endeavors. Otherwise we would all be sticking to making horse shoes.
My advice is make the best game you can make and with the best graphics you can muster and\or hire talented artists. If the game still does not do well then make another one that is better than the last and continue.
Genre fatigue is definitely a concern, but don't forget all the places you have an advantage (price being the huge one) over established titles. Most independent gaming successes are a result not only of the end product, but of the idea and motivation behind the entire company (this is actually true in many industries, Apple being an easy example). People will forgive poor graphics for indies in particular, but they're also more forgiving of everything in general if they buy into the personal mission of the company--the freedom of expression of Mojang or the emotional aesthetic of Thatgamecompany. The honesty and devotion to that idea will shine through, and people will buy what you do as much for why you do it as how you do it. A lot of AAA titles are missing this (two I can think of quickly that had this in spades are the MGS series and the latest Twisted Metal by the original team), and it really helps set you apart.
Of course, having such a concise personal mission for a company is a topic in itself, and if I had mine I wouldn't be reading articles.