Indie Gaming's New Asset Class: The Scalability and Profitability of Long-Lead Sequels

The indie gaming sector has long been celebrated for its creativity and innovation, but 2025 marks a pivotal shift: the emergence of long-lead, hype-driven sequels as a distinct and scalable asset class. At the forefront of this trend is Hollow Knight: Silksong, whose launch on September 4, 2025, demonstrated how small studios can leverage nostalgia, strategic development, and patient capital to achieve blockbuster success. For investors, this case study offers a blueprint for identifying high-potential opportunities in an increasingly fragmented market.

The Franchise Foundation: Hollow Knight’s 15-Million-Sale Milestone

The original Hollow Knight has sold over 15 million copies across all platforms, a staggering figure for an indie title developed by a team of three [1]. This success, achieved since its 2017 launch, created a financial foundation that allowed Team Cherry to take a seven-year development window for Silksong—not out of necessity, but by design. As co-founder Ari Gibson explained in a Bloomberg interview, the team prioritized creative polish over arbitrary deadlines, a philosophy that resonated with fans and critics alike [2].

The original game’s enduring appeal is evident in its recent Steam player count peak of 72,916 concurrent users on September 3, 2025—the day before Silksong’s release [3]. This surge underscores the power of a loyal fanbase and the halo effect of a well-regarded sequel. For investors, it highlights how first-party success can create a self-reinforcing cycle: a strong initial title builds a community, which in turn fuels anticipation for sequels.

Scalability Through Strategic Development

Team Cherry’s approach to scalability is rooted in modular design and tool efficiency. By leveraging Unity’s built-in tools and the Unity Asset Store, the studio minimized technical overhead, allowing its small team to focus on art, animation, and narrative innovation [4]. This model, as noted in a 2025 LinkedIn analysis of the side-scrolling game market, is particularly effective for Metroidvania titles, where world-building and interconnected design are paramount [5].

The studio’s “game-jamming mentality” further enhanced agility. As described in a Unity case study, Team Cherry treated development as iterative sprints, testing ideas rapidly and refining them over time [6]. This approach not only reduced time-to-market but also ensured the final product aligned with its ambitious vision. For investors, the lesson is clear: small teams with access to scalable tools can compete with AAA studios by prioritizing creative execution over brute-force development.

Financial Performance: A $10M Launch and Beyond

Silksong’s financial performance in its first hours was nothing short of explosive. According to Tweaktown, the game generated $10 million in revenue within four hours of its $19.99 launch, with 400,000 PC players logging in within 24 hours [7]. By September 4, it had become the third most-played game on Steam, with 517,374 concurrent players—surpassing even the original Hollow Knight’s peak [8].

This success was amplified by strategic pricing and distribution. As a day-one Xbox Game Pass title, Silksong reached millions of subscribers at no additional cost, while its $20 price point balanced accessibility with profitability. The game’s 5.2 million Steam wishlists (as of late August 2025) also translated into a strong conversion rate, with estimates suggesting 32% of wishlisters became buyers within a month [9].

The Investment Thesis: Nostalgia, Hype, and Patient Capital

The Silksong case study validates three key principles for investing in indie sequels:

1. Nostalgia-Driven Demand: The original Hollow Knight’s 15 million sales provided a built-in audience for Silksong. This “halo effect” is increasingly valuable in a market saturated with short-lived titles.
2. Hype as a Currency: Team Cherry’s seven-year development period, far from being a liability, became a marketing asset. The drip-feed of updates and teasers kept anticipation high, a strategy that paid off with record Steam wishlists and pre-orders.
3. Patient Capital Pays Off: By avoiding external funding pressures, Team Cherry maintained creative control and delivered a polished product. This aligns with broader industry trends, where studios with financial flexibility outperform those reliant on venture capital [10].

Conclusion: A New Paradigm for Indie Investing

Hollow Knight: Silksong is more than a game—it’s a proof of concept for a new asset class. By combining strategic development, nostalgia, and patient capital, small studios can achieve AAA-level success without compromising creative vision. For investors, the takeaway is clear: long-lead sequels with strong community engagement and scalable development models represent a high-conviction opportunity in the evolving gaming landscape.

As the industry shifts toward niche-driven markets, the indie sector’s ability to monetize passion and patience will only grow. The next Silksong may not be far off.

Source:
[1] Hollow Knight sales numbers: How many copies did the original sell? [https://www.radiotimes.com/technology/gaming/hollow-knight-sales-numbers/]
[2] Why 'Silksong' Took Seven Years to Make [https://www.bloomberg.com/news/newsletters/2025-08-21/why-silksong-team-cherry-s-sequel-to-hollow-knight-took-so-long-to-make]
[3] Hollow Knight Steam Charts [https://steamdb.info/app/367520/charts/]
[4] Hollow Knight - An Adventure Game | Made with Unity [https://unity.com/made-with-unity/hollow-knight]
[5] North America Side-Scrolling Game Market 2025 [https://www.linkedin.com/pulse/north-america-side-scrolling-game-market-2025-vo2je/]
[6] Hollow Knight - An Adventure Game | Made with Unity [https://unity.com/made-with-unity/hollow-knight]
[7] Hollow Knight: Silksong generates $10 million for three developers in just 4 hours [https://www.tweaktown.com/news/107568/hollow-knight-silksong-generates-dollars10-million-for-three-developers-in-just-4-hours/index.html]
[8] Hollow Knight: Silksong Shoots Up Steam's Most-Played Games Chart [https://www.ign.com/articles/hollow-knight-silksong-shoots-up-steams-most-played-games-chart-hours-after-launch-with-huge-concurrent-player-numbers-as-storefront-issues-ease]
[9] The Steam games that blew up after gamescom [https://alineaanalytics.substack.com/p/the-steam-games-that-blew-up-after]
[10] Cloud Computing Best Practices 2025: 11 Steps to a... [https://distantjob.com/blog/cloud-computing-best-practices/]