Purchased by Sony back in 2001 for an unspecified amount, Naughty Dog is now regarded as the premier studio within Sony’s first-party family (with Insomniac making quite a name for itself recently). In a LinkedIn post (thanks to Eurogamer), co-founder Andrew Gavin shared insights into the events that culminated in this significant acquisition, demonstrating that despite changes over time, some things remain constant.
Discussing the increasing expenses related to game development during the late 1990s and early 2000s, Gavin pointed out that one of the major factors behind Naughty Dog’s acquisition by Sony was a deep-seated problem in the AAA market. Developers often lacked the financial means to produce their games, which left publishers with considerable power over them.
In simpler terms, during the late 80s and early 90s, the typical video game cost between $50,000 and $100,000 to create. However, this figure significantly rose over time. For instance, Crash Bandicoot, launched in 1996, had a production cost of $1.6 million. Jak and Daxter, released in 2001, cost more than $15 million. By the time Jak 3 was released in 2004, the cost to develop an AAA game had already risen to around $50 million per project. Since then, these costs have continued to grow steadily.
In the year 2000, we were still funding every project ourselves, and the pressure of independently managing these rapidly increasing budgets was immense… Essentially, he wanted to provide the studio with the necessary resources to continue producing top-tier games without being overwhelmed by soaring costs and the crippling anxiety that a single mistake could bring everything crashing down. This was what Gavin expressed.
Currently, one of the founders from Naughty Dog shares that producing a large-scale game could cost anywhere between $300 million to $500 million. Reflecting on the decision, he believes it was the appropriate choice.
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2025-01-06 07:36