Are AA Games Catching Up AAA Games?

AAA games, once considered the safe bet due to their massive teams, budgets, and marketing, have dominated the gaming industry for decades. However, a significant shift is occurring, with midsized and even tiny games increasingly gaining popularity. These smaller games often charge less, run better, understand their audience, and, in many cases, attract more players. When discussing "smaller games," this encompasses everything from AA titles to indie projects, solo developer creations, survival games, co-op horror experiences, and even Roblox experiences. These diverse titles are achieving player numbers previously thought impossible without a major publisher, a massive development team, or a high-profile reveal at a major gaming event. The core reason for this shift is that players are increasingly prioritizing focus, affordability, creativity, and genuine fun over raw production value. According to Alinia Analytics, indie games accounted for approximately 25% of Steam's total revenue in 2025. With Steam's revenue reaching around $17.7 billion, indie games generated roughly $4.5 billion. This is far from "passion project money" and indicates a substantial market presence. Furthermore, indie games often cost significantly less. Players are increasingly opting to purchase multiple affordable, interesting indie titles rather than a single, expensive AAA game, feeling they get more enjoyment and better value for their money. The "1% club," a community built around the idea that single-player and smaller, more focused games are becoming more significant, highlights this trend. While the profit margins on individual smaller games might be lower than AAA titles, the sheer volume of players they attract is remarkable. For example, games like Repo and Peak have garnered over 15 million players each, demonstrating that millions of players are flocking to non-AAA franchises that offer a more accessible and often more engaging experience. Beyond price, smaller games offer a socially easier entry point. They are easier to recommend, gift, or even purchase on impulse. Often, an indie game provides a gourmet treat in terms of content, while some AAA titles can feel like empty calories. This accessibility allows players to easily pull friends or Discord communities into a game. A prime example is "Schedule 1," which sold 7.7 million copies by April 2025, grossing approximately $118 million – a remarkable achievement for a game primarily developed by one person. Similarly, Green Hell, a survival game, has sold over 12 million copies since its 2019 launch, years after its initial release, without continuous, expensive marketing campaigns. Its success stems from a compelling game that people are interested in playing, coupled with a feasible pricing model that allows developers to profit without needing to make "all the money." Capcom, while not an indie developer, has adopted an approach closer to that of an indie studio, focusing their efforts and releasing well-crafted games without excessive spending. This contrasts sharply with the thousands of people often involved in AAA game development, which can hinder experimentation and specificity. The concept of "perfect seven games" from the Falcon Show describes highly specific games that excel in one innovative or superior aspect, even if they don't try to be "everything." Players are increasingly gravitating towards these focused experiences over bloated, massive-budget "masterpieces." The economic circumstances surrounding smaller games allow for greater creativity and strangeness. Developers can commit to a single good idea, limit the scope, and even embrace a certain level of "ugliness" or "jankiness" that can be charming, unlike the often-criticized issues in larger AAA titles. This has led to the rise of "Triple-I" initiatives, where independent teams with recognizable hits and high production values operate without the full corporate circus of AAA studios. Roblox, a platform where creators earned over $1 billion globally in 2025, further illustrates the potential. The top 1,000 Roblox developers averaged $820,000 each, with the top 10 averaging $33 million, demonstrating that significant wealth can be generated outside traditional AAA development. However, it's crucial to remain grounded. While the ceiling for small games has become absurdly high, the indie market is brutally crowded. Over 20,000 games were released on Steam in 2025, but only 608 of them garnered 1,000 reviews, a benchmark for doing "real business." This means a vast number of games go unnoticed. Yet, those that break through can compete with AAA games in terms of player count, hype, and cultural impact, often enjoying a longer sales tail. Smaller games have also revolutionized the concept of a launch. Unlike AAA titles, where launch day is often a make-or-break event, many smaller games build an audience through demos, early access, and public betas. This iterative development allows for real-time feedback, enabling developers to listen, react, patch, and evolve the game based on player input. Green Hell, with over 80 updates and 19 major expansions, exemplifies this long-tail model, continuously engaging its audience and selling for years. The nimbleness of smaller teams is a significant advantage. When a problem arises, developers can directly engage with their community, quickly identify issues, and implement fixes. In contrast, AAA studios face bureaucratic hurdles, requiring multiple meetings, approvals, and notifications, by which time players may have moved on. Players are increasingly comfortable with games that grow over time, fostering a sense of community and loyalty where they actively support developers who cater to their audience. While AAA games are not disappearing, they are no longer the sole default center of the industry. The rise of smaller, focused, fairly priced games that understand and respect their audience is challenging the notion that scale equals value. These games, made by passionate individuals or small teams, are proving that genuine connection and engaging experiences can be more important than massive budgets and all-encompassing features. The lesson for AAA developers is to embrace this focus and passion, moving away from the assumption that bigger always means better.