In recent years, the AAA gaming industry has been plagued by spiraling budgets. As the cost of game production becomes higher and higher, the profit margins of studios are continuously compressed, and the prospects of the entire industry are also clouded. Previously, it was generally believed that the development cost of AAA games was between US$100 million and US$250 million, but according to industry insiders, this number has now risen further. At present, the average budget of AAA projects has generally exceeded US$300 million.
Recently, Bloomberg reporter Jason Schreier published an article pointing out that development costs of more than US$300 million are common in the AAA field, and in some cases even far exceed this figure. For example, the development cost of a work like "GTA6" may be much higher. Schreier emphasized that the fee does not include bonuses for executives at major game studios. In other words, in a typical three- to four-year development cycle, developer salaries and other directly related expenses alone reach or exceed $300 million.
The exact budget of a game is often difficult to verify, but Schreier said that the AAA projects he has been exposed to recently cost "all over $300 million, sometimes much more," which he believes helps explain the current difficulties in the industry. A rough calculation shows that a game priced at US$70, with a development cost of US$300 million, would need to sell more than 4 million copies to make back the money. If you include platform commissions and distribution costs, this number is likely to be close to 6 million copies.
Six million copies sold is a high threshold for any game. Even a highly anticipated title like Red Desert has yet to reach that level of sales. In contrast, works such as "Light and Shadow: Expedition 33" and "ARC Raiders" have become highlights outside of the AAA model. They prove that even with limited budgets, excellent games can be created. Perhaps this type of model is the future direction of sustainable development for the industry.