The total cost of the biggest games reportedly exceeds $1 billion. Information shows a sharp increase in the last five years.
Game development costs could potentially reach $1 billion when development, marketing and promotion are taken into account.
Last week, a government agency in the UK opposed Microsoft's acquisition of Activision Blizzard on the grounds that it would harm competition. Examining the agency's 418-page report in detail, some interesting details regarding game development costs emerged.
The CMA report details that some major publishers may spend over $1 billion to make their biggest franchise games. The report reveals that a major AAA game that is currently greenlit can cost $200 million to develop alone, and Call of Duty has already surpassed that, reaching $300 million to develop a stand-alone game.
You may be interested in: What is AAA Gaming?
In fact, the report reveals that a major publisher spent $660 million developing a single game, with marketing costs equating to about $550 million. This resulted in the unnamed game costing the publisher over $1 billion when all said and done.
The CMA's report contrasts with game development budgets estimated at between $50 and $150 million for the biggest games just five years ago. According to CMA's new report, game development budgets have increased so much in the last five years that a total budget of $1 billion is out of the question.
Elsewhere in the agency's new report, the CMA said that Microsoft would lose significant money by making Call of Duty Xbox exclusive. The agency effectively disagreed with Sony's concerns that making Call of Duty Xbox exclusive would be profitable for Microsoft.
What is AAA game?
What is AAA Gaming? One AAA gameis an informal classification for video games produced and distributed by a medium-sized or large publisher, which often have higher development and marketing budgets. AAA game development is associated with high economic risk as high sales levels are required to make a profit.
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