User-generated content (UGC) has become a force to be reckoned with in the gaming industry, opening up profitable revenue diversification opportunities as it rethinks the way users engage with and even earn from games. While giants like Roblox and Fortnite set the foundations for this latest manifestation of a UGC scene, a new wave of competitors and innovation highlights how new players and tools are leveraging this trend, and how smaller developers and independent creators can tap into this growing market.
The UGC boom
The UGC model has evolved significantly since its earliest adoption in games like Doom and Second Life. Technologies such as voxels and signed distance fields have made content creation more intuitive and scalable, letting users remix and expand upon existing creations. These developments have led experts to draw comparisons between today’s UGC tools and the impact of YouTube on video creation, with low barriers to entry providing opportunities for creators to generate income and even develop full-time careers.1
The success of UGC platforms like Roblox and Minecraft is well-documented, with Roblox alone boasting over 66 million daily active users. These platforms have thrived on user-created content, which not only boosts player engagement but also drives revenue. However, the UGC phenomenon is not limited to these two behemoths.
For example, the GTA franchise's upcoming entry, GTA VI is set to build onto GTA V’s thriving UGC scene. The game’s infrastructure is powered by FiveM, a third-party modding framework. FiveM enables immersive role-playing servers where over 200,000 players engage daily, adopting various roles within a detailed virtual economy. These servers, sustained by strong player commitment and community bonds, generate substantial revenue, sometimes up to $100K monthly.
It’s worth noting, that Rockstar’s recent acquisition of FiveM suggests a strategic move to grow player migration to GTA VI, signaling an intent to build on FiveM's existing success rather than starting from scratch, ultimately giving them an edge in developing a creator ecosystem.2
Meanwhile, EA games is also getting busy. A new job listing suggests that The Sims 5 will be free-to-play and feature an in-game marketplace, as EA and Maxis are hiring a Head of Monetization and Marketplace for The Sims 5 to manage in-game content pricing and UGC (user-generated content), both free and paid.3
EA also revealed that its new Skate project will launch soon, and that UGC will be at the very center of the new game. This title will probably have a park editor similar to Skate 3 that allows gamers to create and share their own unique and custom skate parks online.
On a Q3 2022 earnings call, Electronic Arts CEO Andrew Wilson called out UGC as a key focus, explaining "I think that has been the fuel that has driven the growth in recent times. As part of that of course, the ability to create your own content and put it into that ecosystem has become a really valuable part of what our industry offers to our players and our fans that traditional media doesn't offer.”4
Dimensions of competitor UGC applications and tools
Recent developments in the UGC space highlight the industry's commitment to expanding opportunities for creators, even in games by small and medium-sized studios. Eggy Party, a social party game, emphasizes UGC by allowing users to create and share their own maps. With over 100 million user-generated maps already available, the game exemplifies how UGC can drive community engagement and content variety for small studios. The developers' focus on global localization and frequent updates ensures that the content remains fresh and relevant across different cultures.5
Meanwhile, Spatial, a social and gaming platform and a Ready Player Me partner, has introduced an entire UGC games hub with a mission to rival Roblox. By enabling Unity developers to publish directly to mobile, browser, and VR platforms without learning new tools, Spatial aims to democratize game development and attract a broad range of creators. This approach aligns with the trend of making UGC more accessible and scalable.6
In the Web3 space, Dookey Dash: Unclogged by Yuga Labs integrates blockchain technology into UGC, allowing players to create and sell cosmetics while earning significant revenue. The game’s creator mode and planned esports tournaments underscore the growing intersection of UGC and blockchain, which could shape the future of digital content creation and monetization.7
With our next-generation content creation tools, users will be able to bring their own design into their favorite games that integrate Ready Player Me. Developers can generate a link to a content editor that gives their players creative freedom in creating custom avatar assets. It's the perfect way to engage with dedicated community members around a game.
Investment and developer support for UGC creators
The financial backing for UGC platforms and tools reflects the increasing recognition of their value. Megamod, a platform designed for creators with limited development expertise, recently raised $1.9 million to support its go-to-market strategy. The platform’s emphasis on creating games 200-300 times more cost-effectively than traditional methods highlights the growing efficiency and accessibility of UGC development tools.8
Similarly, Gamefam has launched a $5 million Creator Fund to support UGC creators on platforms like Roblox and Fortnite. This fund provides financial backing, expert advice, and resources, with a particular focus on underrepresented creators. Gamefam’s commitment to diversity and support for innovative ideas aligns with the broader trend of investing in UGC as a viable and lucrative sector.9
Hypersonic Laboratories’ $7 million investment in the Helix platform further demonstrates the industry's confidence in UGC. Helix aims to be a "modding paradise," offering high-detail graphics and user-friendly tools based on Unreal Engine 5. By providing a professional and accessible environment for creators, developers like Helix are an example of the strong bets investors are placing on plug-and-play development tools.10
Opportunities for smaller developers and independent creators
The growing investment in UGC reflects a broader trend of supporting creative and diverse voices in the gaming industry. By staying informed about industry trends and exploring new technologies, smaller developers can capitalize on these opportunities and carve out their niche in the evolving UGC landscape. Engaging with communities on platforms like Discord and Reddit, and organizing UGC challenges and collaborations, can also enhance visibility and attract potential players.
On the technological side of things, with the proliferation of UGC tools and platforms, smaller developers, and independent creators have unprecedented opportunities to enter the market. Tools like Ready Player Me, which offer advanced features and low barriers to entry, enable developers to create custom content without extensive and costly technical expertise. A nascent universe of creator tools, for example, platforms like Megamod and Spatial, are designed to simplify the development process and reach broad audiences.
For independent developers, the ecosystem’s embrace of UGC not only brings potential strategic advantage but also offers sophisticated plug-and-play customization tools that alleviate high development costs. By leveraging existing tools and platforms, developers can focus on creativity and innovation rather than the complexities of game development.
Bring UGC into your own game
Ready Player Me's next-generation tools allow you to build a character customization system with any characters and content – including that made by your community. The built-in UGC tool gives your players the ability to show off their creativity and submit their own asset designs to be used in your game. Once you approve their creations, the content will be live in your game.
Apply for early access and learn more about our next-generation tools here.