- A reliable insider says AAA games now typically cost over $300 million to produce.
- The insider also says that these budgets mainly account for developer salaries and development overheads.
- With these types of budgets, games need to sell 4-6 million units at full price to turn a profit.
The AAA games industry has been under threat due to rising budgets for a while. As games become more and more expensive to make, studios are finding it challenging to turn a profit, leading to a very concerning outlook for the entire industry.
It’s been known for a while that AAA titles cost anywhere from $100-250 million to produce, but an insider says this figure has risen further. It is said that AAA budgets have now reached over $300 millio on average.
Why it matters: A top-tier production like The Last of Us Part 2 cost $220 million in 2020, showcasing how quickly the industry’s budgets have grown out of control.
According to Jason Schreier’s latest post on Bluesky, it has become common for AAA productions to cost as much as $300 million or more. He also says that this figure can be much higher than $300 million in certain cases. For example, a game like GTA 6 likely costs a lot more to make.
Jason Schreier notes that this cost does not include bonuses for executives running major game studios. As such, developer salaries and any other costs related to game development alone make up $300 million or more during the three or four years spent on a typical production cycle.
The numbers I’ve heard floating around AAA game dev these days are $300 million or more, sometimes much more.
-Jason Schreier
What makes this so interesting is the fact that a $70 game would need to sell over 4 million copies at full price to turn a profit, assuming it costs $300 million to make. However, when accounting for platform fees and distribution costs, this number likely rises close to 6 million.
Needless to say, 6 million sales is a huge ask for any game. Even a highly anticipated title like Crimson Desert has yet to sell that many units so far.
Of course, games like Clair Obscur: Expedition 33 and Arc Raiders stand out as exceptions to the AAA rule, highlighting how great experiences can still be made on modest budgets.
Perhaps this is the template the industry needs to follow moving forward to shift toward a more sustainable future.
What do you think about the industry’s growing budgets? Share in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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