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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Salaries.
I checked Call of Duty MW 3 as an example, and that has 9347 people in its credits. Granted, not all of these people will have played a major role, but many of them will.
To keep the maths simple, imagine that they spent Half a billion. Game took 5 years for 1000 people to create. If those people on average make 100k per year, thats your whole budget.
The second large part is advertisement and media, which is often a huge chunk of the cost of making a AAA game.
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