Yes, video game budgets are skyrocketing, but the reason goes beyond graphics

The costs of an employee are way more than the base sallary with taxes, insurance, healthcare and whatever. In Finland we talk of 160%, could be much more in US for example.
 
The costs of an employee are way more than the base salary with taxes, insurance, healthcare and whatever. In Finland we talk of 160%, could be much more in US for example.
Exactly this! It depends on the industry and state but it is typically 150-200% here. Developers making $100-150K/year isn't the problem - that's the norm. (Those jealous of their pay should learn to code.)

Hiring 300 people and then complaining about labor costs is the problem. I.e., Bad management. These big studios assume their next project is going to be a hit and therefore justify huge budgets that they drunkenly spend on everything. Then blame everyone from the grunt developers to the gamers for their failure to manage the project's quality or costs.
 
If these Companies would completely remove their marketing department and worked on their game. And when it's ready spent just $1mil on a Game Trailer showcasing a game nobody has ever heard of.. and it's phenomenal.

Social media will do the rest if your product is worthy. Viral marketing only works to sooth the Egos of these Devs and to gain sympathy.


 
Realistic graphics?
I insist on 100% photorealism in the live actors movies I watch.
My games however only need to be great fun to play.
Also, I do not own a fancy crazy expensive graphics card so I never buy new AAA games and probably never will. The required hardware also eats large amounts of electricity which is quite expensive where I live.

So when this bubble bursts I probably won't even notice.
 
I think game reviews are the main thing that makes or breaks a big budget game. I've seen some games that we really fun get mediocre reviews and then nobody buys them and they lose money. This is true with other products outside of gaming too though.
 
I don't think there's anyone to blame here except simple supply and demand. Supply costs are too high, and the demand price is too low (and needs to be). $30-40 Atari Games (pre-crash), $50 Nintendo/PS1/Xbox games, then $60 in the post-3D era, and finally crossed into $70. Yet these games (PC) are finding themselves on major sales less than a year in. My buy price is $20-30 (occasionally $40-50), and according to inflation, that $50 game from 1985 would be $150 in today's money. No one's buying standard edition games for $150. Couple that with MUCH larger studios / budgets than we saw in the 80s and 90s. DLCs and microtransactions cover some of it (and controversial), but I've found these largely avoidable, don't solve the problem, and create a new one. I don't have the answer, and I only see the divide getting worse as people continue to expect more for less (and often get less for more).
 
Realistic graphics?
I insist on 100% photorealism in the live actors movies I watch.
My games however only need to be great fun to play.
Also, I do not own a fancy crazy expensive graphics card so I never buy new AAA games and probably never will. The required hardware also eats large amounts of electricity which is quite expensive where I live.

So when this bubble bursts I probably won't even notice.

If you do look for a compromise, the 6800 XT is ~$350 and I can generally keep it to just over 200W after undervolting. Getting 4K/100fps in Cyberpunk in FSR Quality. 9070 XT looks to be an even better value but will be more expensive.
 
I forgot to mention, even putting aside AGILE, that the size of management itself is a problem.

Back in the 90's, my father ran my companies Software department. On one particular project, he was responsible for approximately 100 individuals across two coasts (New York & California).

Fast forward to today, and the standard is that "No manager should be responsible for more then Ten people". So you have 10x the size of management, both costing significantly more, but also diffusing responsibility and hampering decision making.

Throw in companies being basically run by their financial departments (you have to justify *everything*, and that drives all development towards whatever the latest trend happens to be), and is it any shock that most big-budget games are...big-budget, samey, micro-transaction filled messes that force an open-world design even if it doesn't make any logical sense?
 
Some of you have talked about game price increases... ummm games are cheaper than they ever have been when adjusted to inflation. Its the one product that has been nearly inflation proof. We were paying $60-70 for games back in the 90's 2000's. The price is about the same as it was back then.

When adjusted for inflation games should be costing over $150 and I am not talking the live service 3 dlc and all kinds of digital goodies editions.

Then add into the fact that we have a MASSIVE indie development of games costing anywhere from a few bucks to 20-30 bucks. Never have we had so many cheap games. Millions of games under $50.

Simply put, games are cheaper then they ever have been, stop fooling yourself, you are not fooling anyone that has been around.

The other things is the comment about graphics was about as stupid as it can get. Older people are the ones who tolerate the bad graphics and favor gameplay. Retro games we grew up with that have modern flairs tend to do very well. Younger generations wont play games that look retro or "old". Try go get a zoomer to play an atari game and come tell me the results.
Not how it works.
1. The market also grew and sales are several times higher than back then.
2. You also have many more revenue streams, not just game sales.
3. Digital is much cheaper for distributors even with 30% cuts from stores.
 
I have been here long enough to have a meaningfull sense, of why game industry is at dawn fall state.
Yes, game quality is getting way higher, but the tools are much more easier and more "smart" than before.
On older days, a game did take a long time to develop, because, everything had to be coded/invented, many game studios had their own engine... nowdays.. game-engines reached at a minimum "standard" status of delivery and capabilities...
For me, the AAA costs of big studios, are mostly paying dev to reach a deadline, no matter the cost, bug-free enough for a release ... to generate revenue.
Its common knowledge by the markting teams, that "NEW" gets attention and money, even if is such a "facelift" of an old/previous game ....
Big studios pay for managers to meet deadlines and target audience, managers will hire many devs to meet the CEO's targets ...
Games like BG3, BM:W, are a different breed of games, in this case, different breed of studio management..
You can also see how Black Desert was "born" from a very tight budget ....and how is it today...
Games like Starfield and StarCitizen should be a wake-up call to players and studios... of how a game not supposed to be, and how a game not supposed to be made... no matter the money.
 
Just like the Real Estate Market, the Video Game
Industry is in a much need of a crash in order to find themselves as an affordable and less volatile industry again.

Would that mean thousands of game developers would have to lose their jobs? Yes, just as thousands of Real Estate agents would, but when we live in a world with massive overblown gaming budgets and salaries just as much as ridiculously overpriced housing there's only one thing to hope for....a massive crash in both industries to readjust everything.
I've been saying this for years. Gaming market needs to crash to weed out all the mediocre developers.
 
Game development is getting lazier & lazier. Games release broken & many stay broken. No optimizations. To dependent on fake resolutions & fake frames. Hardware has become mediocre too. Graphics cards are being held back by upscalers and frame generation. Instead of producing more powerful/efficient cards they're focusing on BS upscalers and frame generators.
 
I've been saying this for years. Gaming market needs to crash to weed out all the mediocre developers.
In my opinion the problem is not the "mediocre" developers but the opportunistic publishers that want to make a quick dollar by rushing out broken games that should still remain in development till full completion, but instead they are using the consumers to be their Beta testers while those poor bastards are paying full price just for wanting to play on "release" date.
 
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