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If they don’t spend enough money to differentiate themselves then they risk being drowned in a sea of indie games.
Every year the number and quality of indie games increases. The ferocity of competition makes it extremely hard to get anyone to play your game, let alone survive as a developer. This raises the bar on quality to a ridiculous degree.
Take any AAA game from the 1990s. Today that’s a single person project which can’t even compete with the most basic of indie games out there. To actually make money and support yourself as an indie developer is ridiculously hard!