this post was submitted on 06 Sep 2023
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The cost to develop has gone down, if anything. You don't need powerful hardware. You don't need expensive industry software. You don't need proprietary devkits. You can create a perfectly good game on an old laptop with Blender, Krita, Aseprite, Unity, Unreal, Godot. You can target consoles on regular hardware and regular consoles.
Before, a handful of people could develop the most technically advanced game of the year. Today it’s common that hundreds of overworked people are involved in the development of a game.
Each person must have their own expensive equipment and salaries. Not to mention the cost of renting an office. The costs adds up quickly.
Smaller games made by one or two people are probably cheaper, but the cost of these games aren’t $70 like the big budget games.
Tell me you don't make games without telling me you don't make games.
You can make perfectly good games, yes. But good luck making anything AAA like that. The games you're talking about are indie or niche. For example, they will have no mocap.
And even in those cases, there is a difference between "cost to start a studio" and "cost to develop a game". The costs you're talking about are the cost of getting started. Those are barrier to entry costs, not development costs. When we talk about development costs, we typically talk about everything after you have all the hardware and software you need. Studios already have those things so they barely factor into the ongoing development costs
Also you only don't need proprietary dev kits if you have no intention of doing per-platform QA. Fine for indies. Not fine for AAA
Yes, the barrier to entry has gone down; the minimum cost to ship something, anything, is lower than ever....but only by comparison to the peak cost. Even small indie studios are spending as much as studios did when making $60 NES games
Sure, if you want to only talk about AAA games, yeah, the cost is going up. But in general, cost has gone down.
I'm not only talking about AAA. I'm pointing out some of the things you missed in your assessment.
Like I said, even indie studios today spend more to make their non-sprite, full featured games than studios did making NES games. And then those indie games sell for $20 or $30 instead of the full $60 price point. So the content-to-development cost ratio is still shit
Unless you only one scrappy in the games made by three person dev team they really haven’t. The cost for making a game that was good in 2015 has gone down, sure. But it behooves you to show that game development in general, and yes that includes indie developers, has gone down.
A 10 person dev team in any major city is going to cost you between $500,000 and $1mill a year just to staff.
That's really not the bulk of development costs though: The real cost is in labour; as game dev teams have increased the labour costs will increase too. Delay in game? Costs go up.
It's offset by the industry becoming bigger; back then a game selling 100k is a huge success, now it's more like 10 million. At some point that'll cap so that's why the studios area increasing prices now. Oh and if the studio is public, they need to feed the ~~parasites~~ shareholders.
I generally don't buy big games of late so I've not had to put up with super expensive games, but it's just something to keep in mind why prices are so.
If you're paying a developer 80k per year, 5k per employee in hardware and licensing is nothing
From a purely financial perspective, yes. From a managerial capex vs opex perspective, no.