“Rising Costs of AAA Game Production: CMA Report Reveals Shocking Numbers”

2023-05-02 11:23:00

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In a UK Competition and Markets Authority report (CMA) about the deal Microsoft and Activision Blizzard discovered mentioning the hefty cost of producing fresh AAA games.

In the text of the report, the analytical firm International Data Group mentions that the average budget for major blockbuster games will rise from $50-150 million (previous generation of consoles) to $200 million (or more) in the coming years.

In addition, the document provides cost estimates for various franchises from other publishers, although no specific series or names are given:

• First publisher spends $164M on development and $55M on marketing;
• The second cited production costs between $80 million and $350 million, with marketing costs for the biggest games as high as $310 million, according to the publisher;
• A third interviewee noted that the amount of production for fresh releases ranged from $110 million to $350 million;
• The fourth publisher named amounts from 90 to 180 million dollars (from 50 to 150 million for marketing). At the same time, the most expensive game of the last unnamed company cost her 660 million for production and 550 for marketing.

Similar amounts surprised many players on the network, although some users considered such spending to be expected – given the subsequent income of game services and AAA releases. At the same time, gamers are actively trying to guess the projects that unnamed publishers meant.

Examples include GTA 5, Fortnite, Red Dead Redemption 2 and other major industry representatives.

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