A Guide to Asset Flipping for Game Developers and Publishers

Asset flipping is a common practice in the game development industry, where developers create and sell pre-made game assets, such as 3D models, textures, and animations, to other game developers and publishers.

These assets are often created with the intention of being resold, rather than being used to create a unique game experience.

Developers can create these assets quickly and efficiently by using game engines and pre-made templates, which can save time and money.

According to a study, the average cost of creating a game asset is around $500, but it can be sold for up to $5,000, making it a profitable business venture.

However, not all asset flips are created equal, and some may be of lower quality or have limited use, which can affect their resale value.

Asset flipping is a term coined by games journalist James Stephanie Sterling around 2015, referring to low-quality games produced using pre-made assets.

The term is often used in a pejorative sense, implying that the game is cobbled together and barely functioning, like the titles Vice referred to in 2017.

A unique perspective: Long Term Real Estate Investing

Using pre-made assets in video game development is not inherently bad, as long as the game is actually playable and the assets are used to enhance the overall experience.

For example, a beginner developer might buy assets from the Unity Asset Store to use as a foundation for building their first game, which is a common and acceptable practice.

However, simply throwing a bunch of assets together without any thought or effort is when asset flipping becomes a nefarious practice, resulting in a game that's more like shovelware.

A game made using poorly considered, flipped assets is generally considered to be shovelware, which is a term that implies a game is of very low quality.

If you've ironed out any glitches, created some nice atmospheric effects, and your characters and NPCs work in harmony, then there's no reason you shouldn't market your game, even if it uses pre-made assets.

The asset flip game rose to prominence in the 2010s with the advent of pre-made royalty-free assets. The Unity store launched in 2010, providing a platform for developers to easily access and use these assets.

In 2015, Unity acknowledged the problem of "flips" in a blog post, but it wasn't until February 2017 that the term gained more attention. Digital Homicide Studios were accused of creating asset flips by Sterling, who reviewed one of their games, The Slaughtering Grounds.

In response to the accusations, Digital Homicide Studios sued Sterling for $10 million, as well as anonymous Steam users for $18 million. These lawsuits were dismissed, and the developer's games were removed from Steam for violating their terms of service.

Steam removed 173 asset flip titles released by Silicon Echo and associated accounts in September 2017. 86 of those titles had been launched in the two months before the crackdown, accounting for approximately 10% of all games added to Steam in the period.

Valve released a statement addressing the move, stating that the games were impacting the store’s functionality and making it harder for players interested in finding fun games to play.

Additional reading: 1031 Exchange 10 Year

Some critics argue that the term asset flip is used inconsistently, which can be misleading. Bennett Foddy, the developer of Getting Over It, believes that his game could "reasonably be described" as an asset flip due to its use of bought assets.

This raises questions about what exactly constitutes an asset flip. Foddy's statement highlights the complexity of the issue, making it difficult to draw clear lines.

Some critics argue that the term asset flip is misused to describe any game with pre-made assets, which isn't necessarily a bad thing.

Game developer Bennett Foddy has spoken out against the inconsistent use of the term, pointing out that even his own game Getting Over It features a large number of bought assets.

The real issue is with developers who shamelessly rip off entire games from asset stores and sell them as their own for profit, rather than using pre-made assets to save time and focus on original content.

Check this out: Is Accumulated Depreciation a Long Term Asset

Using pre-made assets isn't inherently problematic, as many game developers do it to concentrate on more important aspects of game development.

The problem arises when people plagiarize others' work and pass it off as their own, which is unfair to both the original creators and the consumers who are misled.

There are games like PUPG, Banished, and Getting Over It that use premade assets and are still successful.

Games like PUPG, Banished, and Getting Over It use a lot of premade assets.

These games show that asset flips aren't always a guarantee of failure.

PUPG, Banished, and Getting Over It are examples of games that defy the idea that asset flips can't be successful.

Games like these demonstrate that success in game development isn't solely dependent on the originality of assets.

Expand your knowledge: Chobani Flips Good

If you're looking to find titles to flip, online marketplaces like Amazon and eBay are a great place to start. These platforms have a vast array of products with varying price points.

Amazon's best-sellers list is a treasure trove of potential titles, with over 25 million products listed. The list is updated hourly, so you can stay on top of the latest trends.

eBay's completed listings page can also be a valuable resource, with over 1.5 billion listings to sift through. You can use filters to narrow down your search and find titles with a high demand.

Some titles sell for a significant markup, with a price increase of up to 500% between the buy and sell prices. For example, a product that sells for $10 on Amazon can be flipped for $50 on eBay.

The key is to find titles with a high demand and a low supply, which can be achieved by analyzing sales data and pricing trends.

For more insights, see: Pension Fund Asset Allocation Trends

Using premade assets can be a great way to speed up the asset flipping process, but it's not a guarantee of success.

In fact, some premade assets can be quite expensive, with prices ranging from $100 to $10,000 or more.

To get the most out of premade assets, it's essential to choose high-quality assets that are designed for intensive performance.

This means selecting assets that have been optimized for fast rendering and can handle a high volume of traffic.

For example, a well-designed WordPress theme can be a great asset for a new website, but it may not be the best choice for a high-traffic e-commerce site.

On the other hand, a custom-built e-commerce platform can be a great choice for a high-traffic site, but it may be more expensive than a premade WordPress theme.

In some cases, premade assets can be a good option for small-scale projects, but for larger projects, it's often better to invest in custom-built assets.

This is because custom-built assets can be tailored to specific needs and can provide better performance and security.

Ultimately, the choice between premade and custom-built assets depends on the specific needs of the project.

By choosing the right assets for the job, you can ensure that your asset flipping project is a success.

Asset flipping is a high-risk strategy that can lead to significant financial losses. It involves buying an asset, such as a rental property or a business, with the intention of quickly selling it for a profit, often before any significant work has been done to improve the asset's value.

Many people have been scammed by asset flippers who promise unrealistic returns on investment. In fact, some asset flippers have been known to sell the same asset multiple times, using different identities and fake documentation to avoid detection.

The key to successful investing is to focus on long-term growth and stability, rather than trying to make a quick profit. This approach may not be as exciting as asset flipping, but it's much less likely to end in financial disaster.

Investors who have fallen victim to asset flippers often report feeling pressured into making a decision quickly, without fully understanding the risks involved. In reality, it's always best to take your time and do your research before making a significant investment.

Ultimately, the best way to avoid the pitfalls of asset flipping is to educate yourself and seek advice from trusted professionals. By doing so, you can make informed investment decisions that align with your financial goals and risk tolerance.

Intriguing read: Risk Identification Asset Threat Vulnerability