Fantasy TBS really are a niche market, but I think Stardock CEO Brad Wardell summed their success up nicely by saying:
"Turn-based strategy games will probably always be a niche. However, they are a steady niche. As a developer, I have a pretty good idea what a well-produced, well-marketed turn-based strategy game will do. By contrast, if I’m making a first-person shooter, for instance, I really have no idea how well it will sell. It could be a major hit or it could totally bomb regardless of how well produced and marketed."
I think this is why we've seen Fantasy Wars and King's Bounty, with Elven Legacy forthcoming from 1C. Not to mention Disciples III, HOMM Kingdoms, possibly HOMM6, Stardock's new fantasy TBS, etc.
I started PC gaming exactly 2 years ago and immediately swore off console gaming for good. My favorite games now are all PC TBS titles, and I had to do a lot of digging to find them. But as long as they keep getting made, I don't mind doing the work hunting them down as opposed to having a hundred ads shoved in my face.
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