Making an indie game might seem like a low-cost endeavor compared to AAA development, but the reality is more complex. From essential software licenses to marketing expenses, the costs can add up quickly even for small teams.

Core Development Costs

At the foundation of any game development budget are software licenses and development tools. While game engines like Unity and Unreal offer free tiers, commercial licenses can range from zero to $1,800 annually depending on revenue. Development software adds another significant expense, with tools like Adobe Creative Suite running $600 per year and Visual Studio costing $45 monthly. For asset creation, developers might need 3D modeling software such as Maya at $1,620 annually, though free alternatives like Blender exist. Sound design requires its own suite of tools, with professional Digital Audio Workstations like Pro Tools adding another $600 yearly.

Personnel Costs

For a small indie team working on a 12-month project, salary costs can quickly become the largest expense. A programmer typically commands $60,000-90,000 annually, while artists range from $45,000-75,000. Sound designers and game designers fall into similar ranges, from $40,000-80,000 per year. Many indie developers reduce these costs by wearing multiple hats or working part-time while maintaining other jobs.

Marketing and Distribution

The often-overlooked costs can make or break an indie game’s success. Steam’s Direct Fee runs $100 per game, while console developer programs range from $99 to $2,000 depending on platform. Marketing typically requires 20-30% of the development budget, with social media advertising needing at least $1,000-5,000 for meaningful reach. Website hosting and maintenance add another few hundred dollars annually.

Real-World Examples

The range of indie game development costs tells a fascinating story of creativity meeting constraints. Undertale, developed by Toby Fox, was created for roughly $50,000, with Fox handling most development tasks himself while using basic tools and simple graphics. The game went on to sell millions of copies, proving that budget constraints don’t necessarily limit success.

Cuphead represents the opposite end of the spectrum. Studio MDHR initially estimated a $150,000 budget, but the final cost exceeded $7 million after expanding the scope and extending development to seven years. The team’s commitment to hand-drawn animation and original jazz recordings drove up costs substantially, though the game’s unique style helped it stand out in the market.

Among Us, developed by InnerSloth for approximately $130,000, shows how timing and community engagement can overcome modest budgets. While its initial release was quiet, the game’s pandemic-era explosion proved that success isn’t always tied to development costs.

Rogue Legacy 2 demonstrates a middle-ground approach, with Cellar Door Games spending approximately $2 million over three years of development. Their team of seven full-time developers plus contractors created a successful sequel that justified the higher investment.

Papers, Please offers another perspective on lean development, with Lucas Pope spending around $70,000 over nine months. By handling programming, art, and design himself and focusing on distinctive pixel art that matched his capabilities, Pope kept costs manageable while creating a critically acclaimed game.

Funding Options

Indies typically fund their projects through various means: personal savings, part-time development work, crowdfunding platforms like Kickstarter and Indiegogo, publisher deals, or government grants where available. Early Access sales have also become a popular way to generate development funds while building a community.

Additional Considerations

Beyond the basic development costs, indie developers must account for legal fees for business setup and contracts ($2,000-5,000), quality assurance testing at $25-50 per hour, localization costs of $0.10-0.25 per word per language, music licensing ranging from $50-500 per track, and basic business insurance running $500-2,000 annually.

The Bottom Line

A realistic budget for a small indie game developed over 12-18 months typically falls between $100,000-300,000, though costs can vary dramatically based on scope, team size, and location. Consider Hades, which despite Supergiant Games’ larger team of 20 people, maintained efficiency through careful planning and regular releases of polished content during Early Access. This approach helped manage costs while building a dedicated community, proving that strategic development practices can help control even larger-scale indie projects.

For aspiring developers, the key is starting small and scaling up based on success. Many hit indies began as passion projects with minimal budgets before growing into larger productions. The most successful indie developers often find creative ways to minimize costs while maximizing impact through careful scope management and strategic use of resources.