Quick Overview
- Salaries are the biggest cost
- Marketing can cost just as much as making the game
- Tools, licenses and equipment stack up
- Game dev teams grow over time so costs do too
- Delays, outsourcing and post-launch work add more
- Some things are pricey even if you do not see them
Making a game is expensive and some big titles cost over $300 million to develop now. This article breaks down where all that money usually goes, based on a Reddit thread with some input from people in the industry.
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These games take years and huge teams to build
Big games usually take several years and hundreds of people to make. Most of the money goes into paying those people — programmers, designers, artists, writers, testers and a lot of roles you never even hear about.
If a studio has 500 to 1,000 people working full time for five years, and each one costs around $100k to $200k a year (including equipment and office stuff), that alone adds up to hundreds of millions.
Marketing costs can match development
Making the game is only part of it. The other part is making sure people know about it. Big studios spend tens or even hundreds of millions on ads — YouTube trailers, social media, streamers, game events, TV commercials and so on.
If a game is expected to sell a lot, the publisher might spend as much on marketing as they did on the game itself. That is pretty normal for AAA titles.
Tools, Licenses, and Infrastructure
Game engines like Unreal are not free. Studios usually pay a cut of the revenue. Software licenses for tools like Maya, Adobe or Houdini also cost a lot. Then there’s dev kits for each console, cloud storage, servers, office rent, legal help and all the stuff running in the background.
If the game uses motion capture or voice acting, that costs even more. Studios might hire out for this or build their own setup but that only makes sense if they are big enough.
Delays and revisions keep the bills coming
Games get delayed all the time. But even when nothing is releasing, salaries, rent and other costs do not stop. You just keep spending without making any money.
Some features get scrapped and reworked which wastes time and adds more dev hours. Over the years that can really push up the total cost.
Contractors and outsourcing
Not everything is done in-house. Studios often outsource stuff like art, animation, voice work or QA testing to outside teams.
Some of these teams are overseas where labor is cheaper but the cost still adds up. Outsourcing also means more management, coordination tools and sometimes lawyers to handle contracts or licensing.
Support after release is a whole other expense
For many games, spending keeps going even after launch. Studios usually plan for years of updates like patches, new content, bug fixes, live events and more. That means keeping teams around to run servers, talk to players and push out updates.
A lot of times, these costs are already part of the big $300 million estimate.
Testing and temporary teams still cost money
Near the end of development, studios often bring in tons of testers and support staff. They may not get paid much but there are hundreds of them, and they still need training, equipment and supervision.
Some companies even outsource testing to other countries but the cost is still there.
Translating and voice acting for every region is pricey
Big games usually launch worldwide which means translating the entire game — not just text but also voice.
If the game has full audio in 10 or more languages, each one needs its own actors, recordings, editors and testing. That adds a lot, especially for story-heavy or open-world games.
Licensing real brands, music, or other people's creations
Some games have real brands in them like actual cars, weapons, songs or movie characters. Getting permission to use those things is not cheap.
For example, a racing game with real car brands needs separate deals with each company. Same with games based on movies or featuring celebrities.
Physical copies are still a thing
Even with most sales being digital now, a lot of big games still have disc versions. That means printing, packaging, shipping and giving retailers a cut.
Some studios build their own game engine
Not all studios use something like Unreal. Some make their own engine from scratch. This gives them more control but also means they need a separate team just to maintain those tools and keep everything working.
Even if the engine was built years ago, keeping it updated and working across all platforms still takes ongoing effort.
Some games really do cost this much
Baldur’s Gate 3, The Last of Us 2 and GTA V all had massive teams and long development cycles. Add salaries, tools, marketing and everything else and it is easy to see how these projects hit $300 million or more.
Source: Reddit
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