New research suggests development budgets are soaring dangerously fast

Study: Average dev costs as high as $28m

The average development budget for a multiplatform next-gen game is $18-$28 million, according to new data.

A study by entertainment analyst group M2 Research also puts development costs for single-platform projects at an averge of $10 million.

The figures themselves may not be too surprising, with high-profile games often breaking the $40 million barrier.

Polyphony’s Gran Turismo 5 budget is said to be hovering around the $60 million mark, while Modern Warfare 2’s budget was said to be as high as $50 million.

The new figures put into focus concerns often fired out by the development community.

Robert Walsh, the CEO of Australian outfit Krome, recently told Develop that game budgets are rising at a frightening pace.

“I think that’s one thing that the press, to a certain extent, is forgetting,” said Walsh in an interview.

“They’re saying sales have increased over ten percent since last year or whatever; I mean, dev costs have probably doubled or tripled in the console transition.”

Walsh’s Krome studio has recently announced layoffs across all three of its studios, citing poor sales that – presumably – failed to satisfy investments.

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