Tuesday, March 20, 2007

How much does your game REALLY cost.

Ok, I get it that video game development budgets are getting insane. This new era of video gaming stands to be a very impressive race of "next-gen-now-current-gen" hardware (though I'm still rooting for Nintendo... call me old skool).

This article in Forbes tries to explain why games are so expensive.

Problem is, I don't buy it.

Take for instance this chunk here:
The remaining $59 per game goes into many hands. The biggest portion--nearly 45%--goes toward simply programming and designing the game itself. Then the console maker, retailer and marketers each get a cut.

OK 45% of the $60 game into the development costs, AND games are also where console manufacturers make back money through licensing, as the XBox and the PS3 are sold at a loss (GO NINTENDO! KEEP SELLING FOR A PROFIT!).

So, with games sales expected to reach almost $45 billion, are we really to believe that game development COSTS are expected to reach $21 BILLION?

This doesn't sound right.

Some one correct me if I'm reading this wrong.

someaudioguy some audio guy videogame voice acting video game voice over actors business career


  1. Sounds about right to me, for a AAA game. The costs for hordes of Artists and Programmers aren't cheap, especially over the course of several years. Really what the article is saying is that with the sales rising to $45 billion, the total cost of selling the game is approximately $44 Billion for the industry, when one takes into consideration the whole picture external to the publisher. Makes a pretty good case for Digital Delivery, No?

  2. Ahh! Yes, I see your point. What a crappy business model. These companies don't pay talent (programing or acting) worth anything, yet the model is still this expensive. Seems a bit inflated to me.

    I totally agree that downloading would make a much better solution, but it wont be a downloading service created by reasonable fans of the genre. It will be a similar service to the crippled DRM downloads of online music and movie services.