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Alternatively you rely on curators to surface that quality work. We have plenty of books in the world, and curation and personal recommendations (as well as an author's reputation over multiple books) seem to work quite well there.

Also since you can realise your artistic vision for a lower budget, you don't need to make back a gigantic outlay so you're not needing to take a huge risk that needs to have a massive reach on the launch week

Why can Netflix and Spotify figure it out but the game industry can't?

Not at all. This means we are no long tying production quality of a game to how much money the developers have access to. It enables real creativity. Right now do you not think the AAA market is satured with yet another first person shooter etc? Creativity has lost out to capitalism, this will bring it back.