Indie Games Should Be Too Cheap or Too Expensive

Spiderweb Software's Jeff Vogel shares some interesting thoughts on the pricing of independent titles, mostly to argue against the "indie must be cheap" mantrum.
These games are more expensive. They have to be. When you write a game for a small, dedicated fan base, you need to extract more money from each customer as a condition of survival. Suppose the market for my retro RPGs is ten thousand people. If I charge each of them one or three dollars for a game, I go bankrupt in one year. So they have to pay more, but, in return, they get an experience that is deep, lasting, and rare. I can charge more because very few developers make what I make.

Writing these sorts of games is perfect for an Indie developer because you can "own your niche" and have very little competition. Blizzard can always make a bigger, shinier real-time strategy game, so you can't ever beat them. But if you write a super-detailed simulation of war in the Pacific, lack of competition will help your fans to forgive the flaws that come with a smaller budget. And, when you do build a fan base, they can give you a decent living. You won't get rich writing games for 10000 people, but you can have a nice life.

If you're making a game at this end of the spectrum, you'll probably have to swallow hard and make your price high enough to survive. You will get e-mails every day complaining that your game doesn't cost as much as Doodle Jump. Ignore them, and turn away any distributor who tries to get you to charge a pittance. You have to charge what it takes to survive.