In BriefPosted:11:04 AM PST January 11, 2025Image Credits:ActivisionWhats behind ballooning video game budgets?Why does it cost some companies hundreds of millions of dollars to develop a popular video game?A couple weeks ago, The New York Times blamed the never-ending quest to deliver more photo-realistic graphics and it suggested the industry is beginning to see diminishing returns, leading to layoffs and studio closures.However, Bloombergs Jason Schreier argues this analysis is a little bit off the mark. He doesnt deny that budgets have grown dramatically ($20 million for Naughty Dogs Uncharted 2 in 2009 vs. $220 million for their Last of Us Part II in 2020) or that graphics play a role, but he said it really boils down to needing bigger teams for longer periods of time due to improved graphics, yes, but also the growing scope of games.Plus, he writes that everyone whos spent at least a few years in the industry has their own horror story about management decisions like feature that gets canceled because the CEOs teenage kid didnt like it or teams of hundreds of people floundering in pre-production as they try to figure out what a games core loop will actually look like.So if game companies are really worried about ballooning budgets, Schreier says they should focus their introspection on mismanagement that can end up wasting everyones work and time.Topics