The average development budget for a multiplatform next-gen video game is currently around $18-$28 million, according to new data. A study by entertainment analyst group M2 Research also puts development costs for single-platform projects at an averge of $10 million. The figures themselves may not be too surprising, with high-profile games often breaking the $40 million barrier (think Modern Warfare 2, Gran Turismo 5, Mass Effect 2, Final Fantasy XIII, etc.). These figures have caused some concern within the game development community, as the pressure caused can be quite “frightening” as developers try to satisfy publisher investment and finish a game on schedule, under budget. “I think that’s one thing that the press, to a certain extent, is forgetting,” Krome CEO Robert Walsh told Develop.
“They’re saying sales have increased over ten percent since last year or whatever; I mean, dev costs have probably doubled or tripled in the console transition.” Combine such lofty figures, the current economic climate and actual retail sales, and you get a recipe for disaster should consumer demand fail to equal or exceed the initial investment.Sometimes it works, obviously: look no further than Modern Warfare 2 as an example. The game surpassed $550 million in sales its first five days at retail and has done much more since it's November 2009 release - making sure the publisher is recouping each and every development cent. Of course this is not the story with most video games; we have to think this is just another reason to stop pirating games, it's an expensive business we work in.
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