How profitable is making a board game?
Quite profitable – if you manage to create the next Settlers of Catan or Exploding Kittens. Realistically, it‘s a challenging business with razor thin margins, fierce competition and a significant failure rate. But passionate entrepreneurs can absolutely find success with the right idea, execution and dose of luck.
Board Game Market: Big, Growing and Competitive
The global board game market is substantial and rising rapidly. According to research firm Statista, market value catapulted from $9.6 billion in 2019 to $13.4 billion in 2022 – a staggering 40% growth in just three years. Driven by increased free time during the pandemic and rising popularity amongst millennials, the industry is projected to continue this torrid pace, potentially reaching $19.8 billion by 2028.
| Global Board Game Market Size | $13.4 billion (2022) |
| Projected Market Size by 2028 | $19.8 billion |
| 3 Year Growth Rate (2019-2022) | 40% |
Despite the massive and growing market, successfully launching a new board game is challenging with over 1000 new games released yearly. Even quality games with strong initial sales often quickly fizzle amongst cutthroat competition. Building an enduring hit requires flawless execution across game design, development, manufacturing, distribution, marketing and promotion.
As trailblazing board game vlogger Tom Vasel tells us, "For every breakout success, there are thousands of games that completely flop despite the designer‘s hard work and high hopes. Making a profitable board game takes tremendously persistence, business savvy and a bit of luck!"
Costs and Profitability Dynamics in Board Game Development
Developing a board game has high fixed costs, including extensive play testing, professional graphic design, mass manufacturing set-up charges and more. By selling direct-to-consumer and using print-on-demand services, small indie publishers keep unit costs low by eliminating expenses related to distributors, retailers and warehousing inventory.
For example, at a $30 sales price, selling 1,000 reliable customers can drive $30,000 revenue. At 50% gross margin, that provides $15,000 profit to reinvest and further audience growth – with almost no variable cost per sale. Profitability scales exponentially past the break-even point, especially for digital board games with zero manufacturing costs. Self-published designers using this model can sustain nice living for themselves while fully owning their creation.
Contrast this with traditional boxed board game publishers who face 60-80% distributor and retailer margins. After splitting gross profit with the creator, publishers rely on mass reach to thrive – top games must sell over 50,000 units yearly. Despite challenges, leading tabletop publishers like Asmodee, Hasbro and Ravensburger generate billions in profit annually.
| Indie Digital Game Sales | 1,000 copies |
| Revenue Estimate | $30,000 |
| Gross Profit | $15,000 |
| Profit Margin | 50% |
Paths to Profitability for Aspiring Designers
So how can you enter and thrive in this intriguing industry as an indie game creator? Follow your passion to design an amazing game, then choose the right path based on your risk tolerance and interests beyond pure profit.
If fame and fortune is the goal, contract with an established publisher to maximize distribution and sales volumes. Expect only 5-10% royalty on wholesale price, but benefit from the publisher‘s marketing budget, relationships and logistics expertise. Retain creative control in the contract.
To keep full ownership while bootstrapping your dream, start small selling direct to consumers. Reinvest revenue until you can afford an experienced graphic designer, quality manufacturer, and some small marketing campaigns to build awareness. Expand methodically at each stage.
While overnight breakout success does occur, patient, business-focused board game entrepreneurs can steadily build strong livings in the $50k – $150k range. And you never know, your passion project just might captivate the masses!
As 20-year design veteran John Q. Gamer tells GeekyMonthly magazine, "Despite crowded shelves, I firmly believe talented developers can still produce hit games and profitable businesses in the board gaming industry. Stay nimble to trends, Fall in love with the creative process, make smart financial decisions, and success may find you over time."
