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Indeed, you have to look for niches -- and find the ones that are in

1) high demand (not just high demand in general -- high demand for new/better content by a new entrant);

2) low supply;

3) well paying customers.

I'm sure despite the flood those will still exist, as long as there's still a good amount of differentiation between people's preferences. A niche is a small subset of in the space of products that a small subset of customers have strong preference to. This needs preference differentiation.

This preference difference could be toward many features: cultural setting, story style, gameplay style, aesthetic style, etc.

There's perhaps a combinatorial advantage here: if sensitivity varies significantly across many of those parameters, just choose any unexplored subset, optimizing for 1/2/3 -- there are exponentially many in the number of distinguishing features (if you browse Steam tags you see this is potentially a very large number!).

https://store.steampowered.com/tag/browse#global_492



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