As an outside observer, indie game development is still doesn't seem sustainable. I've read too many stories of people with initial success and try to build a company around it to finally fail. There are too many variables in play to build predictable revenue.
There are of-course exceptions, it mostly involves making as many games as possible and praying one of them clicks (Zynga, Rovio etc). In such a market, the competition is ruthless. Both perfect competition and complete monopoly are not favourable[1].
[1] http://blakemasters.com/post/20955341708/peter-thiels-cs183-... (Read from "IV. Capturing Value")