Video Game Budgets: Why Are They So High?
The Escalating Costs of Video Game Development
The development of a successful video game can now require investments reaching hundreds of millions of dollars for some companies. This raises the question of why these costs have become so substantial.
Recent reporting by The New York Times attributed the increasing expenses to the continuous pursuit of more photorealistic visuals. The article posited that the industry may be experiencing diminishing returns in this area, potentially contributing to workforce reductions and studio shutdowns.
A Different Perspective on Rising Budgets
However, Jason Schreier of Bloomberg offers a contrasting viewpoint, suggesting this analysis is somewhat inaccurate. While acknowledging the significant growth in game development budgets – for example, the cost increase from $20 million for Naughty Dog’s “Uncharted 2” in 2009 to $220 million for “The Last of Us Part II” in 2020 – he argues that graphics are not the sole driver.
Schreier contends that the primary factor is the necessity for larger development teams working over extended timelines. This is influenced by advancements in graphics, but also by the expanding complexity and scope of modern games.
The Impact of Poor Management
Furthermore, Schreier highlights that many industry veterans have experienced firsthand the negative effects of poor managerial choices. He cites examples such as features being scrapped based on personal preferences, or large teams struggling during the initial stages of development to define a game’s fundamental gameplay mechanics – the “core loop”.
These instances demonstrate how ineffective decision-making can lead to wasted resources and prolonged development cycles.
Focusing on Internal Efficiency
Therefore, if game companies are seeking to control escalating budgets, Schreier recommends a period of internal evaluation. He suggests focusing on addressing instances of mismanagement that can ultimately squander both time and the efforts of the entire development team.
Ultimately, optimizing internal processes and decision-making may prove more effective than solely focusing on reducing graphical fidelity.
