- Saber Interactive CEO thinks that layoffs in the gaming industry are happening because of increasing budgets.
- AAA game budgets on average increase by more than twice every console generation.
- There have been colossal failures like Skull and Bones and Concord so the CEO’s statement makes total sense.
The game budget and development time have been continuously increasing and that isn’t a good thing. Sequels of certain games now take years to develop and cost hundreds of dollars.
While this increases the anticipation and hype it increases risk too and one that any developer can take. There have been many multi-million dollar failures in the gaming industry and the Space Marine 2 boss thinks those are the main reasons for the layoffs.
Why it matters: It isn’t 100% necessary to develop games with a massive budget as Ryu Ga Gotoku Studio has proved this already. The developer has been making Yakuza games with almost the same assets and you can already see how quickly it dishes out the next game that always receives a positive reception.
Speaking to Game File in a recent interview the CEO of Saber Interactive, Matt Karch, the developer behind one of the most notable releases of last year Space Marine 2 revealed that the main culprit behind the layoffs is the increasing budget of the video games.
I think that the age of the $200 million, $300 million, $400 million triple-A game is on its way out. I think if anything has contributed more to the loss of jobs, it’s the multi-hundred million dollar budget.
-Matt Karch
Karch doesn’t think it is necessary or appropriate for the games to cost this much and rightfully so. The only games that can get away with costing massive amounts of money are the likes of Red Dead Redemption 2 and Cyberpunk 2077 which managed to develop a dedicated fandom of their own.
The average AAA game budget has doubled every console generation and that is concerning. The Spider-Man 2018 cost $100 million to develop while the Spider-Man 2 released in 2022 cost $315 million.
That is more than twice and there was just a $10 difference in the price tag. Ubisoft is also a prime example of this scenario as the gaming giant has developed the first ever AAAA game and it was a colossal failure. So, Matt Karch’s statement makes total sense and measures should be taken.
What do you think about the statement from Space Marine 2 Boss? Do you think the AAA game costing hundreds of millions of dollars is fair? Share your thoughts with us in the comments section below or join the Tech4Gamers forums for discussion.
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[News Editor]
Obaid is pursuing a Law degree while working as a content writer. He has worked as a gaming writer for over three years because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring, Cyberpunk 2077, and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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