How Much Does Game Development Costs? (2024)

The short answer is – from zero to infinity. However, it's worth keeping in mind that it might be the most challenging question in the game industry. Why? Because of so many factors affecting game development cost.That said, we will still try to be as precise as possible in explaining how much it will likely cost to develop your own game, including the key factors that might affect the game development budget.

What are the most expensive games ever developed?

For instance, Tomb Raider, which was released to the public in 2013, is said to have cost $100 million to develop. Destiny, initially released in the fall of 2014, is estimated to have cost $500 million to make. Other games are less expensive. Pokémon Go, a game that seemed to have been an overnight success, was, in fact, 20 years in the making and might have cost up to 600K to make. Game industry analysts estimate that the mobile game development cost for the initial version of Angry Birds was around $140,000, which is considered a moderate budget these days. Of course, they do not come close to what Star Citizen might cost when it finally releases.

How Much Does Game Development Costs? (1)

Except for the AAA and publicly funded titles, game developers and publishers reluctantly release budget information about their games. Sometimes even the game developers working on the biggest titles might not have an exact data on their development budget. The numbers that circulate are mostly educated guesses from industry analysts and experts accompanied by occasional leaks to the media. When becoming publicly known, the numbers tell us that games have become extremely expensive to develop, sometimes matching and even exceeding the budgets of Hollywood movie production, such as Cyberpunk 2077 that cost $316Mnot counting the extensive full-scale marketing campaign.

How Much Does Game Development Costs? (2)

Video game development costs and sales – is there a dependency?

An important thing to note is that the cost of developing a video game is not an indicator of the sales potential. Minecraft was extremely cheap to make – its production cost could be estimated to be whatever price the creator, Markus Persson's time was worth when he created it – yet he would years later sell it to Microsoft at $2.5 billion. However, if we look at the most recent indie hits like Vampire Survivors, turns out the developer Luca Galante spent around $1500 by the time the game released onSteam Early Access which is an incredible given that it already hit 93Kreviews on Steam that roughly accounts for 4.5M units sold.

How Much Does Game Development Costs? (3)

Factors Affecting Game Development Cost

Dev team resources and the scope of the game

As you might expect, teams with more experienced developers and an access to the resources will be able to develop a game more efficiently than less experienced teams. Depending on the game's complexity and the targeted platform, larger teams may also get an additional support staff, including game designers, artists, animators, and QA testers. That's why it is better to match the scale of the game with the experience and size of the development team – taking on AAA-level project being a team of two beginners most likely isn't going to work. More complex games typically require more resources to develop and test, resulting in a higher budget. In that case, you must also consider how much it costs to hire a game developer since you will need a professional for complex games. This can include detailed graphics and animations or advanced gameplay features like artificial intelligence (AI), dynamic environments, and online multiplayer capabilities.

Type of game being developed

Game genres naturally have different costs associated with their development due to the additional resources needed. For example, games that utilize high-resolution graphics or advanced physics simulations will cost more to develop than simpler 2D games or mobile games that rely on text and basic graphics.

Target platforms

The more platforms a game is developed for, the higher the overall cost. This is due to the extra work required to optimize the game for each platform and the need to purchase or lease additional development hardware and software.

Marketing expenses

Game development cost associated with marketing and promoting a game can vary greatly depending on the size of the publisher and its resources, as well as the complexity and popularity of the game in question. This could include anything from promotional events to TV ads or merchandise. In addition to these factors, many developers also consider costs based on how long it will take them to produce the game. This can be particularly important for smaller developers who may not have the financial resources to support a large team or extended development cycle. For a bigger projects, marketing budget can equal up to 50%of the development budget, so it's worth having in mind.

The Different Expenses in Game Development Costs

The costs associated with developing your own game can be divided into two main categories: production costs and marketing/distribution costs. Production costs are those associated with the game's actual creation, including things like team salaries; software licenses and purchases; physical equipment or other materials needed for development; and acquiring intellectual property (IP) such as popular characters or settings. Marketing and distribution costs are associated with promoting and selling the game to players. These can include advertising campaigns, promotional events, licensing fees for popular IP, PR costs, and more. We'll discuss some of these cost elements below.

Development team burn rate

Today's average game developer salary in the Western market is $92,000 a year at around $44.26 an hour, which gives an idea of how much does it cost to hire a game developer. If your game development process were to last for a year with a team of ten game developers, this game development cost element would cost you just a little shy of a million dollars. That said, there may be variations in the overall costs based on the experience of the individual members of the development team, their level of involvement in the project, and what exactly their responsibilities will be throughout the project. For instance, the salary for a game designer might be different from that of a client-side game programmer, sound design specialist, or graphics and animation expert. As an indie developer, it's worth calculating how much time it will cost you to work full-time on your game even if you do not actually plan to pay yourself a salary. After all, the time does have a cost too.

Purchasing software licenses and hardware

This game development cost element is self-explanatory, and the cost will depend on what type of data or software your game requires. For instance, purchasing a popular IP license would cost more than acquiring an open-source license for generic graphics or audio assets. Developers often avoid paid software by finding free alternatives that have similar functionality. But when developing a game, you'll almost certainly need pro solutions that you'll have to pay for. Software programs like Maya, 3D Max, Adobe Photoshop, Unity3D, and plugins will cost you money. Unity3D Pro, for example, costs $150 per month or $1800 a year per seat. How to start creating a video game? Developing games can require specialized hardware and software, which can be expensive. For example, a high-end gaming PC could cost several thousand dollars, while professional-grade graphics editing software like Adobe Photoshop can cost hundreds of dollars.

QAtesting

Testing costs can range from a few hundred dollars to hire a few testers to several thousand dollars to set up an in-house testing department complete with the appropriate hardware and software.

Intellectual property

Intellectual property rights can be quite expensive depending on the nature of the IP and how popular it is. For instance, if you wanted to use a recognizable character from one of Disney's movies in your game, this would likely cost significantly more than just licensing generic graphics or audio assets for your project. That's why creating something unique is always a more budget-friendly than buying someone else's IP.

Marketing and PR expenses

The game development cost associated with marketing and promoting a game can vary greatly depending on the size and scope of the project. For instance, marketing a big-budget AAA game can cost millions of dollars, while promoting an indie game might only cost a few thousand dollars, or be free if you dedicate some time to the influencers outreach.

Video game development costs based on the complexity and type of the game

At the most basic level, the complexity of a game is determined by the number of different elements it contains. Games with engaging 3D environments or advanced artificial intelligence techniques will likely be more expensive to build than simple games such as text-based or 2D puzzle games. For example, a simple puzzle game might consist of only a few levels and basic sound effects. In contrast, an open-world RPG might include hundreds of unique locations, dozens of interacting characters, and complex physics simulations for weapons and vehicles. Furthermore, larger games that require extensive testing and bug-fixing may also require additional resources to ensure a high level of quality. In general, the more complex a game is, the higher its development cost.

There are many different types of games that you can develop, each of which has its own unique set of costs and challenges. Generally, indie and mobile games have smaller budgets compared to AAA games. Let's explore how much it would cost you to develop each of these games.

Mobile game development cost

The cost ranges from a few thousand dollars to $150-$200K, depending on its complexity. The price tag also changes depending on the extra functionalities you wish to integrate, such as administrative functions and payment systems. Such additional functions will cost you around 20% more for iOS than Android. But even a simple mobile game can easily require tens of thousands of dollars to develop. In addition, there are ongoing costs associated with running a mobile game, such as server maintenance and customer support. However, with a well-designed and exciting mobile game, you can quickly recoup these costs through in-app purchases and advertising revenue.

Indie game development expenses

How much does it cost to make an indie game? Indie games are typically developed by small teams on relatively small budgets. The average cost to make an indie game is about $250,000, but some small projects can cost as low as nothing + time you spend on development. The lower numbers assume you're working alone and don't have any other developers on board yet; however, the costs stack up quickly once multiple people are involved. To make the game available on multiple platforms, you can expect to spend extra because it'll take more to build and test the game for each platform. Localization can require a lot given that there is a lot of text in the game (which is right for RPG and novels).

But how do you keep your game development cost under control? The best way to do it is to start small. Make a simple game that you can finish on a shoestring budget. Having released a couple of games, you'll have a better idea of what it takes to make a successful indie game. And you'll be in a better position to negotiate deals with publishers and distributors as well.

How much does it cost to make an AAA game

AAA games are the big-budget games that large studios and publishers typically make. The average AAA game takes about four years to develop, with an average cost of about $80 million and higher. But this amount can vary significantly depending on the type of game and its level of complexity. For instance, action-adventure games often have bigger budgets than RPGs or strategy games due to their larger scope and more detailed graphics.

Game studios that create AAA games typically have large teams and a marketing budget that can compare the development budget. Blockbuster games such as Grand Theft Auto 5 or Red Dead Redemption 2 have budgets in hundreds of millions of dollars as you could see above.

The team size for GTA 5 was over 1000 people. In addition, AAA games often use expensive marketing campaigns to generate hype prior to release. For example, Rockstar Games spent roughly $128 million marketing GTA 5 in 2013. Consequently, the cost of making a AAA game can be very high, with some estimates reaching over $300 million. AAA games often make a significant return on investment despite the high cost, making them a lucrative endeavor for major game studio. Overall, the cost of making an AAA game has further increased over the years due to the increasing demand for high-quality graphics and gameplay.

Conclusion

Whether you're a small mobile game developer or you have been working in the AAA-level project, the game development cost can be pretty high. Many different factors determine the cost, including the type of game, the development team's size and experience level. For indies looking to keep costs under control, it's recommended to start small and build up the portfolio. For mobile devs, it's important to balance between the development expenses and the ongoing content production that is expected from the mobile players. On the other hand, game studios that develop AAA games should be ready to spend substantial amounts of money on marketing and salaries for their large development teams. Regardless of the type of game you wish to develop, stay focused on delivering quality, addictive gameplay and graphics that emphasizes its key features.

In case your team is looking for a reliable vendor to help with the continuous production of 2Dand 3D game art, feel free to drop us a message.

See also:

  • 3Dlow poly assets for mobile games
  • Isometric games and their benefits for developers
  • 3D character modeling - pipeline guide
  • Amazing benefits of stylized game art and characters
  • How to find game investors and what types of funding there are
  • Game Art Outsourcing Services

Greetings, enthusiasts and industry insiders! As an experienced professional deeply entrenched in the intricate realm of game development, allow me to provide you with insights into the complexities surrounding the question: "How much does it cost to develop a game?" My comprehensive knowledge and hands-on expertise in this domain make me well-versed in deciphering the nuances and shedding light on the various factors influencing game development costs.

Now, let's dissect the information presented in the article:

  1. Most Expensive Games Ever Developed:

    • The article mentions examples like Tomb Raider ($100 million), Destiny ($500 million), Pokémon Go (around $600,000), and the anticipated Star Citizen, highlighting the wide range of budgets in the industry.
  2. Video Game Development Costs and Sales:

    • Emphasizes that the cost of development doesn't necessarily correlate with sales potential, citing Minecraft as a prime example of a low-cost game that became a billion-dollar success.
  3. Factors Affecting Game Development Cost:

    • Dev Team Resources and Scope: The experience and size of the development team, along with the complexity and targeted platform, influence efficiency and costs.
    • Type of Game: Different genres have varied development costs due to resource requirements.
    • Target Platforms: Developing for multiple platforms increases costs.
    • Marketing Expenses: Highlighting the significant impact of marketing costs on the overall budget, sometimes reaching up to 50% of the development budget.
  4. Different Expenses in Game Development Costs:

    • Production Costs: Associated with the actual creation of the game, including team salaries, software licenses, equipment, and intellectual property acquisition.
    • Marketing/Distribution Costs: Pertaining to promoting and selling the game, covering advertising, licensing fees, PR costs, and more.
  5. Development Team Burn Rate:

    • Details the average game developer salary and how the team size and experience impact overall costs.
  6. Purchasing Software Licenses and Hardware:

    • Highlights the cost of essential software licenses and hardware required for game development.
  7. QA Testing:

    • Discusses testing costs, ranging from hiring testers to setting up an in-house testing department.
  8. Intellectual Property:

    • Stresses the potentially high costs associated with using recognizable intellectual property in games.
  9. Marketing and PR Expenses:

    • Acknowledges the varying costs of marketing based on the project's size and scope.
  10. Video Game Development Costs Based on Complexity and Type:

    • Explores how the complexity of a game, including 3D environments and advanced features, affects development costs.
  11. Game Development Costs for Different Types of Games:

    • Breaks down costs for mobile games, indie games, and AAA games, considering factors like development time, team size, and additional functionalities.
  12. Conclusion:

    • Offers advice for small developers to start small and gradually build, emphasizes the importance of balancing ongoing content production for mobile games, and acknowledges the substantial financial commitment required for AAA games.

In essence, the game development landscape is diverse, with costs fluctuating based on a myriad of factors. Whether you're an indie developer or part of a major studio, understanding these dynamics is crucial for navigating the intricate world of game development. If you have any questions or seek further insights, feel free to engage in a discussion!

How Much Does Game Development Costs? (2024)

FAQs

How Much Does Game Development Costs? ›

The cost of making an indie game can range somewhere between $10,000 to $1 million. There are many factors that influence the game development costs.

How much does game development cost? ›

The average development cost for a PC game is $20k to $5 million, depending on how large and complex the game is and how long it takes to make it.

How much are gaming development fees? ›

The average course fee for Game Design ranges from INR 50,000 to 5 LPA depending on the level of course and college.

How much will my game cost to make? ›

Based on industry research and data, the average cost of developing a mobile game can range from $5,000 for a simple game with basic graphics to over $50,000,000 for a complex, feature-rich game with high-quality graphics and audio.

How much budget is required to make a game? ›

More complex games cost more to make because they require a larger investment in hardware, software, and talent. A simple game may cost as little as $15,000, while a AAA title could cost hundreds of millions. The longer it takes to make your game, the more it will cost.

How much did GTA 5 cost to develop? ›

Five years later, GTA V (2013) cost more than $200 million to make—twice GTA IV's budget. A decade after its release, GTA V has generated close to $8 billion, with hundreds of millions in annual revenue from subscriptions and in-game purchases—a model that its successor is sure to follow.

Can you make a game for free? ›

To make a video game for free, choose a game engine like Unity or Godot with free versions and tools. Then, opt for free assets like 3D models, textures, and sound effects from online platforms like OpenGameArt and Kenney.nl. You can use free online resources like tutorials, forums, and documentation for coding.

Can you make a game by yourself? ›

While it's possible to create computer games yourself, the process can be rigorous and time-consuming. And with so many things to focus on, you may miss certain areas that impact your game quality. Instead of working in a silo, hire and bring the right people on board to fill different roles in your team.

Is game development high paying? ›

Factors like experience and location affect video game developers' salaries. Developers in the entertainment or video game software industry make an average annual salary of around $91,000, according to Payscale data as of December 2023.

Why is game dev so expensive? ›

Specialized skills such as 3D modeling, animation, and artificial intelligence programming come at a premium, adding to the cost of video game production. Complex games can take several years to develop, during which the team is continually working, innovating, and polishing to deliver a masterpiece.

How much does it cost to develop a PS5 game? ›

PlayStation games cost as much as movie blockbusters to make, exposed budgets show. Sony's 2022 PS4 and PS5 blockbuster Horizon Forbidden West cost $212 million to develop over a five-year period, and its 2020 hit The Last Of Us Part II cost around $220 million to make.

How much did Cyberpunk 2077 cost to make? ›

Cyberpunk 2077 cost more than $400 million to make and market, making it likely the most expensive video game (actually released) so far. The game's Polish developer, CD Projekt Red (CDPR), kept spending big after launch, and it seems like it has paid off—because it had to.

How much did it cost to make GTA 6? ›

Reports suggest that GTA 6 has already cost Rockstar $2 billion to develop, making it its most expensive game yet. There are rumors that GTA 6 could have a higher-than-average price tag, potentially deterring some players from buying the game at launch.

How much does Unreal cost? ›

Unreal Engine is free to download and use. This includes all of its tools, features, and complete C++ source code. This makes it a great option for students, hobbyists, and indie developers who are just getting started.

How much did RDR2 cost to make? ›

"Grand Theft Auto V" is the most expensive game ever made, costing $265 million to develop and market. The development cost of the game "Star Wars: The Old Republic" was approximately $200 million. Rockstar Games' "Red Dead Redemption 2" cost around $150 million to make.

How much does AAA game dev cost? ›

The average cost to build AAA games with entry-level and mid-level features and functions is between $60 million and $80 million. However, the price of AAA games might go to $100 million or even more if you want to include cutting-edge and superior features and visuals.

Why do AAA games cost so much to make? ›

During production, the bulk of the budget is spent on tasks such as programming, art creation, level design, and sound design. These costs can range from hundreds of thousands of dollars to millions of dollars. The budget also covers post-production tasks such as testing, bug fixing, certification, and marketing.

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