Apologies in advance for the manifesto that is below. I started to write a response, and rambled on and on... TLDR: Industry itself is unique and I think the market will sort itself out. As the overall quality of games get better, it will be harder for newcomers to enter the market and compete.
This is certainly an interesting topic that I know I have thought about a good bit, as I'm making my own game and brings about some really good discussions. This very new market is unlike most that anyone studies in school or has much expertise in. As a (very small) dev, I am creating a game and people essentially donate money to me because they like what I'm in the process of making (not even finished making!). This is something they can get for free, but some people choose to give me whatever amount of money they feel like giving because they want to. Sure, some developers have rewards or early releases for the different pledge amounts, but in what other industry does someone provide an unfinished product or service to a wide audience and just take what people are willing to give them? Other than street/subway performers, I can't think of any... This tells me we are far from a mature market -- we don't even have a real marketplace!
Because there is a very low barrier for entry, as was mentioned already in this thread, ANYONE can decide one day that they want to make adult games. We see this several times a week on this site. It seems like nearly daily there is another V.1 or Alpha release of a new game on the site. Why? Because so many people think (1) this is going to be easy (2) other people are making a lot of money doing this (3) how hard can it be and (4) it does't cost anything to give it a shot and/or I want to try something new. Whether or not that is a good thing can be debated. I tend to think it is. Simply put: more choices = better odds that consumers will find something they like. I think the market does sort out the good from the bad. So many of these new V.1s don't get far passed that when the new dev gets frustrated that they aren't making $1000s a month and they give up. Others steadily, slowly grow as their game gets traction and still others shoot up like a rocket ship after a promising first or second release. This doesn't happen as much as it did 1-2 years ago, but it still happens (I'm pretty sure A Wife and Mother surpassed $1,000 very quickly after the first release). I'm kinda surprised that pornhub hasn't tried to monetize this industry at all - they have their verified amateurs section where amateurs can submit and make money based on the amount of views that they get - I would think porn games have a place somewhere in there as well.
Now to answer your original question about where we are. In my opinion, we are getting close to the end of the growth stage - the games are becoming somewhat standard gameplay, but there are still a decent amount of unique games. At the same time, there are some industry leaders that are emerging (ICSTOR, Lewdlab, Mr Dots, etc). There are games like Milfy City that absolutely blow my shitty animations out of the water, and as that quality becomes the norm it's going to be harder and harder for the new/little devs to compete. I'm not saying that's going to happen tomorrow, but I can see it on the horizon. So the choice for the new/little devs is becomes either attempt to get on their level or stop making money - and that's when things could get really difficult.
As a very small dev, I'm just going to keep making the game I want to make and see where it takes me. I started doing this for fun and because I wanted a creative outlet. Before doing this, I taught myself woodworking (no lie). I started playing some adult games and thought to myself that I could do something like this. I'm still very much learning, but this is a labor of love for me and it relaxes me. I told myself I'll keep doing this as long as I enjoy doing it and I'm not losing money. It's entirely possible in a year that the market standard has surpassed my capabilities and people stop donating to me, OR as my game slowly grows, I'm able to afford the resources necessary to increase the quality of my game. Or maybe there will always be a market for the small guys with bad animations to create in, while the vast majority of the money goes to the industry leaders... Anything is possible with an industry this new. Who knows which direction we go in from here??
This is certainly an interesting topic that I know I have thought about a good bit, as I'm making my own game and brings about some really good discussions. This very new market is unlike most that anyone studies in school or has much expertise in. As a (very small) dev, I am creating a game and people essentially donate money to me because they like what I'm in the process of making (not even finished making!). This is something they can get for free, but some people choose to give me whatever amount of money they feel like giving because they want to. Sure, some developers have rewards or early releases for the different pledge amounts, but in what other industry does someone provide an unfinished product or service to a wide audience and just take what people are willing to give them? Other than street/subway performers, I can't think of any... This tells me we are far from a mature market -- we don't even have a real marketplace!
Because there is a very low barrier for entry, as was mentioned already in this thread, ANYONE can decide one day that they want to make adult games. We see this several times a week on this site. It seems like nearly daily there is another V.1 or Alpha release of a new game on the site. Why? Because so many people think (1) this is going to be easy (2) other people are making a lot of money doing this (3) how hard can it be and (4) it does't cost anything to give it a shot and/or I want to try something new. Whether or not that is a good thing can be debated. I tend to think it is. Simply put: more choices = better odds that consumers will find something they like. I think the market does sort out the good from the bad. So many of these new V.1s don't get far passed that when the new dev gets frustrated that they aren't making $1000s a month and they give up. Others steadily, slowly grow as their game gets traction and still others shoot up like a rocket ship after a promising first or second release. This doesn't happen as much as it did 1-2 years ago, but it still happens (I'm pretty sure A Wife and Mother surpassed $1,000 very quickly after the first release). I'm kinda surprised that pornhub hasn't tried to monetize this industry at all - they have their verified amateurs section where amateurs can submit and make money based on the amount of views that they get - I would think porn games have a place somewhere in there as well.
Now to answer your original question about where we are. In my opinion, we are getting close to the end of the growth stage - the games are becoming somewhat standard gameplay, but there are still a decent amount of unique games. At the same time, there are some industry leaders that are emerging (ICSTOR, Lewdlab, Mr Dots, etc). There are games like Milfy City that absolutely blow my shitty animations out of the water, and as that quality becomes the norm it's going to be harder and harder for the new/little devs to compete. I'm not saying that's going to happen tomorrow, but I can see it on the horizon. So the choice for the new/little devs is becomes either attempt to get on their level or stop making money - and that's when things could get really difficult.
As a very small dev, I'm just going to keep making the game I want to make and see where it takes me. I started doing this for fun and because I wanted a creative outlet. Before doing this, I taught myself woodworking (no lie). I started playing some adult games and thought to myself that I could do something like this. I'm still very much learning, but this is a labor of love for me and it relaxes me. I told myself I'll keep doing this as long as I enjoy doing it and I'm not losing money. It's entirely possible in a year that the market standard has surpassed my capabilities and people stop donating to me, OR as my game slowly grows, I'm able to afford the resources necessary to increase the quality of my game. Or maybe there will always be a market for the small guys with bad animations to create in, while the vast majority of the money goes to the industry leaders... Anything is possible with an industry this new. Who knows which direction we go in from here??