Term | What It Means | Game Example |
---|---|---|
TAM (Total Addressable Market) | Total demand for your type of product | All players who play cozy strategy games |
SAM (Serviceable Available Market) | Portion of TAM you can serve based on platform, genre, and language | Cozy PC players who buy games on Steam |
SOM (Serviceable Obtainable Market) | Portion of SAM you realistically expect to capture | 1β5% of that audience during your first year |
Formula Example:
TAM = # of global PC gamers Γ % who play cozy/indie games
SAM = # of Steam users Γ % who play relevant tagged games
SOM = SAM Γ expected conversion (e.g. 2%)
Start with public numbers and work down to your niche.
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