What’s behind ballooning video game budgets?

Introduction to Rising Costs in Gaming

Why does it cost some companies hundreds of millions of dollars to develop a popular video game?

Realistic Graphics and Diminishing Returns

A recent analysis by The New York Times pointed to the unceasing pursuit of delivering more photo-realistic graphics as a primary factor behind ballooning video game budgets. This quest, however, seems to be yielding diminishing returns, resulting in layoffs and the closure of certain game studios.

The Broader Perspective on Game Development Costs

Conversely, Jason Schreier of Bloomberg provides a broader perspective, suggesting that the analysis might not fully capture the complexity of the issue. While acknowledging that budgets have indeed increased significantly—citing Naughty Dog's "Uncharted 2," which cost $20 million in 2009, compared to $220 million for "The Last of Us Part II" in 2020—he emphasizes the necessity for larger teams over extended periods.

More Than Just Graphics

Improved graphics are part of the equation, but Schreier highlights the expanding scope of games as another major contributor to soaring costs. Larger teams are required not merely for advanced graphics but to manage the augmented scale and complexity of modern games.

Management and Mismanagement in Game Development

Schreier further notes that many within the industry have experienced instances of mismanagement, where executive decisions can lead to significant waste. Examples include features being canceled based on subjective opinions or teams encountering prolonged pre-production phases while defining a game's core mechanics.

Strategies for Budget Management

If gaming companies are truly concerned about growing budgets, Schreier proposes they should engage in comprehensive introspection, particularly concerning management practices that may squander time and resources.