How do major game studios spend half a billion dollars on the development of a single game?

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This might be a dumb question. So I get that there goes a lot of work and time in creating a high quality game and with major game studios like ubisoft and fromsoft the cost can rank up to hundreds of millions of dollars, but even though it takes a lot of work to make a good game, how does it cost 500 million dollars? like where does that money go to? is there one specific part of making a game that costs a lot of money for large studios?

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Anonymous 0 Comments

500 million dollars is 5000 people earning 100k working on a game for one year. No game acctually has 5000 people working on it earning an average 100k on it but games also dont just take 1 year they often take something like 5-7 years and salaries are not the only cost a game studio has. So lets say half the cost is salary the other half is all the stuff you need to run a game company like rent, utlties, equipment, licenses and so on + marketing the game. Then you can have 500 people working 7 years on a game for 70k anual salary on average or 1000 people for 3,5 years.

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