They say that greatness comes at a price, but most people can’t seem to wrap around just how much Sony is willing to pay for the privilege of creating some of the best games of all time, one of which is one of the most decorated titles in history.
The legal skirmish between Microsoft and Activision Blizzard has shed light on a handful of surprising numbers, revealing the astronomical costs associated with developing AAA video games.
Court documents related to the case, albeit clumsily redacted, have unveiled the financial commitments Sony Interactive Entertainment incurred to develop two of its biggest titles, Horizon Forbidden West and The Last of Us Part 2.
Sony did great job on the document redactions… not 🙃 https://t.co/aPQgk9JU8L pic.twitter.com/5rJQbZbbd0
— Tom Warren (@tomwarren) June 28, 2023
According to these sources, Horizon Forbidden West, crafted over a five-year period with a full-time team of 300, cost a staggering $212 million. In contrast, The Last of Us Part 2 absorbed $220 million over approximately six years even though it had a smaller team of 200 full-time developers. Importantly, these figures likely don’t include Sony’s marketing budgets for each game, which, in the AAA space, can also be significant.
For what it’s worth, both of these games most likely recouped their costs and made a profit. Horizon Forbidden West has sold 8.4 million copies as of May, a little over a year after it first came out. On the other hand, The Last of Us Part 2 was an even bigger hit, selling 4 million copies in its launch weekend, which is enough to set the record for the fastest-selling PlayStation 4 exclusive title ever. It ranks as one of the best-selling PS4 titles with over 10 million copies sold.
Interestingly, both of these games belong to franchises that have since spawned spin-offs in other forms of media. The Last of Us Part 2, in particular, will serve as the basis for the subsequent seasons of HBO’s live-action adaptation of The Last of Us, which put up monster numbers in its debut season.
Unfortunately, for every Horizon and The Last of Us, there exists a handful of other exclusive projects that cost Sony just as much but didn’t pan out so well.
These numbers contribute to an alarming trend in video game development that has seen budgets balloon to as much as $1 billion in recent years.
While these figures reflect the ambition and scope of AAA games, they also expose a potentially precarious situation. As development costs continue to escalate, the industry’s risk tolerance could decline, with companies becoming increasingly reliant on established franchises with guaranteed audiences.
This development model, characterized by a heavy emphasis on sequels and reboots, might stifle creativity and risk-taking, which results in ambitious undertakings like Starfield happening less often as companies prioritize a sure thing. However, it’s important to note that some companies are aware that even proven franchises can stagnate, becoming more open to experimentation. Case in point, Square Enix released a divisive title in Final Fantasy 16, which proved well worth it commercially and is arguably one of the best Final Fantasy games in years if not of all time.
Looking at these costs, the question isn’t whether AAA games are worth the investment – the critical acclaim and the player enthusiasm that Horizon Forbidden West and The Last of Us Part 2 have garnered answer that. The question, instead, is can the industry can continue on this financial trajectory. Is there a ceiling to development costs, and if so, how close are we to hitting it?
As the debate continues, one thing is clear: the increasing financial burden of AAA game development is a crucial issue that the industry must grapple with to sustain innovation, creativity, and profitability. And as development costs continue to rise, companies might need to explore new ways of delivering high-quality experiences without the need for bloated budgets and ever-increasing team sizes.
