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

Question

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?

In: Technology

Answer 1

Figure out how many man hours go into such games, figuring each designer, coder, etc. are making $100k/yr plus benefits