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[Muz]

Let's say I've got game A and game B.

Bob is willing to pay $50 for game A and $35 for game B. Paul is willing to pay $20 for game A and $50 for game B.

If both games charge at $50, they both make $50 from these buyers.
If game A charges at $20, it will make $40.
If game B charges at $35, it will make $70.

But say both games bundle up and sell at $70. They will sell to both buyers, and after splitting up profits, make $70 each. And the buyers are happier because they feel that they've bought two games at $35. They will spread news of this good deal to all their friends who like similar games, increasing profits further.

Also, I don't buy a lot of games because quite often, the developer loses interest and the later levels are crappy. The demo is fun, the reviews are good, but the game is only half as good as it sells itself to be. While it's rare to get a 'rotten' game, it happens, and you can't refund it by then. Bundles mean that if you happen to get a rotten game, at least the other one might still be good.

Since indies can often get 'cross-inspired' by certain titles, why aren't more indies teaming up with games they like and selling together as bundles?

[Moczan]

I think the main problem is handling the money and if the devs are not friends, one of them will have a feeling that the other one is riding on their popularity. Also, there are tons of people who want to pay 30$ for game A, but 0$ for game B.

[RudyTheDev]

While bundles are popular, there is inherited notion that they will be significantly cheaper than the games themselves. So I don't think most people are actually going to buy the 70$ bundle unless they would have bought the individual games. Heck, some people don't buy the games because they know they will be in a bundle soon anyway. May be if you don't call it "bundle" or associate it with any of bundle business, rather sell it as a regular package deal.

[Muz]

I think the main problem is handling the money and if the devs are not friends, one of them will have a feeling that the other one is riding on their popularity.

There are some cases where both would be equally popular or a similar genre. If one is more popular, it doesn't have to be a 50-50 split. It's even more powerful for new developers with no portfolio, who are 'higher risk' to the buyer.

Heck, it could even be a 100-0 split or something if one of them actually wants to ride on another's popularity. One gets marketing to the right market, the other gets to charge more for a game. Yeah, the one who's not getting a cut won't make money, but especially for new developers, you'd want to build a fan base.

Also, there are tons of people who want to pay 30$ for game A, but 0$ for game B.

Not an issue because they can still buy it separately. It's there to give an option for those who do want both.

[Mittens]

I think by bundling games you can also run the risk of making your game look cheap or unwanted.

Giving it that bargain bin look might actually result in fewer overall sales

[Eigen]

I started a similar topic at one point:
http://forums.tigsource.com/index.php?topic=30252.0

[Muz]

I think by bundling games you can also run the risk of making your game look cheap or unwanted.

Giving it that bargain bin look might actually result in fewer overall sales

It's a possibility, but so far it hasn't affected the reputation of games like Machinarium or World of Goo. I've never actually associated 'bargain bin games' with 'bad'. In fact, some of the best purchases I've ever made were cheap games and my worst purchases were overpriced indie games.

Steam bundles games all the time and they make a killing every time.. it's a proven business model. I'm baffled why so many people think that giving a buyer a good deal is bad for business.

[Chaotic Kitten]

From some perspective it's a timing thing. when your game is brand new, it has a higher level of interest, and after a while that fades and your purchases will peter out.  The best approach to maximize sales would be to bundle once the purchases slow down.

If you aren't expecting any kind of buyer rush, by all means Bundle away! You would get a lot of awareness from a major bundle site like the humble bundle if you can get in.