Full post: Exact budgets of video-game productions can be tough to corroborate (more transparency from publishers would be nice!) but the numbers I’ve heard floating around AAA game dev these days are $300 million or more — sometimes much more! — which I think helps explain the current state of the industry
To address some frequently asked questions:
- These are US and Canada productions. If you’re wondering why game X cost so much less, it was probably made elsewhere
- These budgets are almost entirely dev salaries + overheard and have nothing to do with executive compensation (which is mostly stock)
300 million would kinda make sense, as it would mean an avg of 60k/year for a five year production on a 1000 people team. But how many AAA games are actually that large?
Halve the employees and double the salary, and you’ll be closer. Few people on a team will gross $120k, but benefits are part of that cost too.
And taxes.
I’m not a tax expert, but I think the taxes are applied after gross. Taxes on money coming in, not going out. So that ~$120k is what the company spends, but it’s not what the employee sees.
Sorry that I was not more clear. The company is paying the employee 120k gross, yes, but then also paying other things behind the scenes like other taxes and unemployment insurance, etc.
They’re not a consistent size over the life of a project. They also contract out a lot of stuff later on to avoid ramping the team up too much.
Look at Epic games, ~5k staff before the recent layoff. The games they developed over the past 10+ years aren’t even AAA production levels.
Epic isn’t an apples-to-apples comparison with most other studios. They don’t just make games, they develop and support Unreal Engine for both games and film production, they operate EGS, a motion capture studio, ArtStation, Sketchfab, and a dozen other subsidiaries. It’s a huge company.