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What’s behind ballooning video game budgets?

January 11, 2025 | by AI

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Decoding the High Costs of Video Game Development

Have you ever wondered why developing a hit video game can cost companies hundreds of millions of dollars? Recently, The New York Times pointed fingers at the relentless pursuit of hyper-realistic graphics as a key factor. However, this perspective might only scratch the surface. Jason Schreier from Bloomberg offers a different view, suggesting that the issue is more complex.

While there’s no denying that game development budgets have escalated wildly — from $20 million for Naughty Dog’s “Uncharted 2” in 2009 to a staggering $220 million for “The Last of Us Part II” in 2020 — Schreier argues that it’s not just about graphics. Let’s explore what he believes are the real cost drivers:

  • Expanded Teams: Creating modern games requires larger teams working for extended periods. This is partly due to improved graphics but also because games are becoming increasingly ambitious in scope.
  • Management Challenges: Many industry veterans share horror stories about management decisions derailing projects. These include canceled features based on whims or teams struggling in pre-production due to undefined game mechanics.

“If game companies are truly concerned about rising budgets, they should focus their introspection on mismanagement that can end up wasting everyone’s work and time,” Schreier advises.

{Jason Schreier, Bloomberg}

In conclusion, while photo-realistic graphics do contribute to skyrocketing costs, the real culprit may be inefficient management practices. For the industry to thrive without breaking the bank, studios might need to refine their project management strategies.

Image Credit: Artem Podrez on Pexels

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