Nintendo's Star Fox Dev Says Outsourcing Is the Key to Survival

Velan Studios co-founder Karthik Bala explains why mid-sized teams should mix licensed AA projects with small original experiments to stay alive.

Ever wonder how a mid-sized game studio actually survives in an industry obsessed with billion-dollar blockbusters? Velan Studios co-founder Karthik Bala has a pretty blunt answer: take on established IP, and keep a few wild ideas on the side.

Speaking in an interview reported by Otakukart, Bala laid out the awkward spot mid-sized teams find themselves in. They can't go full minimalist like tiny indie outfits, but they also don't have the hundreds of developers that AAA giants throw at every project. It's a squeeze that has killed plenty of promising studios.

His solution? A two-track approach. On one side, you build AA-scale games using well-known franchises, which comes with a built-in audience and lowers the commercial risk. On the other, you keep a lean team and a smaller budget for original, experimental passion projects. That way, you still get room to try weird ideas without betting the whole company on them.

Velan Studios is basically a living example of this strategy. The team has worked with Nintendo on a Star Fox title, while also producing its own original games like Midnight Murder Club. Bala pointed out that betting everything on a single project leaves a studio extremely vulnerable to publisher changes or funding cuts. Spreading your bets across multiple projects helps soften the blow.

Of course, this approach doesn't magically erase development risk. But it does give mid-sized teams a third path that sits somewhere between pure AAA and pure indie. You keep costs under control while still holding onto your creative freedom.

It's a pragmatic reminder that not every studio needs to swing for the fences. Sometimes, surviving means knowing exactly which fights to pick. And honestly? That might be the smartest play of all.

What do you think — would you rather see more licensed AA spin-offs or risky original experiments from studios like Velan? Drop your thoughts in the comments.