Game Development Costs Soaring: The Consequences of Triple-A Games
Game development isn’t for the feint-hearted. While in many ways the cost of the best laptops for game development have come down and the best 3D software like Blender and Unreal Engine are free to use, making the idea of creating a game more attainable, for Triple-A game development budgets are soaring.
Call of Duty: A Billion-Dollar Game
Court documents unearthed this week by Game File reveal that three Call of Duty games released between 2015 and 2020 cost close to $2 billion in total to make. Activision’s Patrick Kelly disclosed that development costs for Black Ops III (2015) were $450 million, Modern Warfare (2019) cost $640 million, and the figure for Black Ops Cold War (2020) was a staggering $700 million. The documents relate to a lawsuit brought by victims of the Uvalde school shooting, which alleges that the Call of Duty games promote guns and violence to teenagers.
The Consequences of Triple-A Game Development
The $700 million figure is a milestone in that it’s the highest game development budget ever reported, but it’s not the first time that numbers in this ballpark have emerged. In 2023, when the Competition and Markets Authority in the UK blocked the Microsoft and Activision Blizzard Merger, its report on the decision mentioned two games publishers who told them that budgets could be as high as $350 million for Triple-A games, and another reported its most expensive game cost $660 million to develop and a further $550 million to market.
Why is this happening, and what are the consequences?
A major factor behind spiraling development costs is that player expectations have been set at a very high level for Triple-A games. Game worlds need to be more expansive, detailed, and complex than ever before, and visuals need to be exceptional. All of this costs time and money.
The consequence is that making a top-tier game today is a huge risk for studios as they must sell more than ever to recoup their costs. As a result, many are sticking to titles based on established IPs that are a safer bet, rather than taking risks with new ventures. Last year, scores of games were cancelled by numerous publishers and thousands of staff laid off, in part due to development costs and the associated risk.
The Future of Game Development
While the budgets of Call of Duty are eye-watering, it’s likely 2025’s biggest game, GTA 6, is going to eclipse them, with a report in The Independent suggesting it has cost $1-$2 billion before marketing. It could be GTA 6 is the last of this whale-budgeted games, as publishers look to cut costs and save money, and turn to AI tools to help.
Conclusion
Triple-A game development is a high-stakes game, and the costs are only increasing. The pressure to deliver a high-quality game that meets player expectations is mounting, and the financial risks are significant. While AI tools may help reduce costs, it’s unclear if they can mitigate the risks involved in developing a game of this magnitude. One thing is certain, however: the future of game development will be shaped by the decisions made today.
FAQs
Q: What is the cost of developing a Triple-A game?
A: The cost of developing a Triple-A game can range from $350 million to over $1 billion, depending on the complexity and scope of the project.
Q: Why are game development costs increasing?
A: Game development costs are increasing due to the need for more realistic graphics, larger game worlds, and more complex storytelling, which requires more resources and personnel.
Q: What is the risk of developing a Triple-A game?
A: The risk of developing a Triple-A game is significant, as the financial rewards are not guaranteed, and the costs are high.
Q: What is the future of game development?
A: The future of game development is uncertain, but it’s likely that AI tools will play a larger role in reducing costs and improving efficiency. However, the success of a game is still dependent on many factors, including market trends, player demand, and marketing efforts.
