![]() At this level, companies can’t afford to take chances on defining new categories. Double this amount to get the true cost to a company, by the time they promote and manufacture the product. Here’s the problem as I see it: Production values have risen to a level that games are starting to cost $3 million to $10 million to produce. ![]() ![]() Sierra founder Ken Williams argues that high production costs hinder risk taking and video game innovation. That is really a function of the capacity of the hardware, and the fact that it is not a high-definition gaming box, so we're producing less art than for high-definition games." ĮA CEO John Ricitiello said in January 2009: "Development is typically a third to a fourth as much for a Wii game then it is for a PS3 or an Xbox 360 game. In June 2009 Ubisoft reiterated that major titles for PS3/X360 cost $20-$30 million to make and that games for the next-generation may exceed $60 million. Leading on from this, an Ubisoft executive gave a breakdown of the company's average development costs per game - with a DS title costing between 500,000 to 1,000,000 euros ($785,000-$1.57m), PS3/Xbox 360/PC titles averaging 12 million to 18 million euros ($18.8m-$28.2m) to create for all 3 SKUs, and a Wii game expected to cost 5 million to 6 million euros ($7.8-$9m) to develop. Ī 2008 system comparison analysis by Ubisoft 'Wholesalers typically pay around $30 per game and with the costs of getting the goods to the wholesalers, any co-op advertising or marketing, and return of good contingencies being roughly $14 per game, the publisher is going to typically get $16 for every unit sold. The costs of developing games for the next-generation of consoles such as Microsoft's Xbox 360 and Sony's PlayStation 3 is estimated to be roughly $10 million as compared to $3-$5 million for the Xbox, PlayStation 2 and GameCube.'The exact licensing fee varies based on the manufacturer ( Nintendo, Sony, Microsoft), as well as any deals they may give a publisher, but it can generally be anywhere from $3 to $10 per unit. Companies may invest heavily on a new IP upon which they can create sequels and/or spin-offs in the future. The cost of developing a video game may decrease over time as dev kits become cheaper, more tools are created, developers become more familiar with the platform, and manufacturing costs are reduced. ![]() Video game costs and budgets See also: Most expensive games ![]()
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