AI BriefingThe Economics of Video Game Development
Key point
Video game development costs vary dramatically depending on scale, and recently AI technology is driving down development costs and improving accessibility.
Details
Video game development costs span a very wide spectrum depending on a project's scale and ambition. PC games cost between roughly $20,000 and $5 million, while mobile games can be developed for as little as $10,000.
AAA game developers invest massive budgets to push the limits of technology and marketing. Rockstar Games's Grand Theft Auto V cost over $265 million including production and marketing, while Bungie's Destiny is estimated to have required a budget of about $500 million.
On the other hand, indie game developers make creative use of limited resources. Toby Fox's Undertale was made with a budget of under $100,000, and Team Cherry's Hollow Knight was also completed with a small budget of about $42,000.
Recently, AI technology such as ElevenLabs is changing the paradigm of game development. By streamlining voice acting and sound design processes, it is helping to reduce development costs and time, and lowering the barrier to entry for game creation.
