As the years go on, it seems major blockbusters in the gaming industry only become more expensive to produce. In fact, one recent release reportedly cost over $1 billion when taking production and marketing costs into account. This unsustainable trend is highlighted in the UK’s Competition and Markets Authority (CMA) report on Microsoft’s failed merger with Activision Blizzard, showing that some AAA franchises, such as Call of Duty, have development budgets already exceeding $300 million. The CMA report cites market analyst firm IDG projecting blockbuster game budgets will grow from an average of $50-150 million last console generation to over $200 million for games released in the next couple of years. With budgets for big-name games like Suicide Squad and Starfield also skyrocketing, it’s no wonder game publishers are increasingly relying on their most trusted franchises, such as Assassin’s Creed and Far Cry. Experts predict this trend could push the industry to its breaking point, with former Sony Interactive Entertainment Worldwide Studios chairman Shawn Layden warning back in 2020 that multiplying these costs by two in the next generation could be disastrous for the industry’s growth.
