Bloomberg: Rising game development costs are driven by poor management

Journalist Jason Schreier of Bloomberg criticized the idea that the increase in video game development costs is mainly due to the progressive improvement of graphics. According to Schreier, corporate mismanagement and inefficiency are equally important factors contributing to budget inflation.

Schreier acknowledges that the search for increasingly realistic graphics has led to diminishing returns over timebut he argues that this is only part of the problem. The real crux of the issue, according to the journalist, lies in the payment of salaries, which represent the main expense item in development budgets.

One employee, in an expensive area like Los Angeles, can cost the company between 15,000 and 20,000 dollars a monthconsidering salaries, benefits and overhead costs. The increase in the necessary staff and the lengthening of development times are the main culprits for the explosion of budgets in recent years.

However, Schreier points the finger above all else against bad corporate management. He cites examples of “companies that chase trends, make bad decisions and lack a clear creative vision.” Inefficient workflows, technological changes and insecure executives can waste time and resources, further inflating costs.

The journalist cites some emblematic cases of mismanagement, such as teams expert in single player games forced to develop live services. Menziona progetti come The Last of Us Online di Naughty Dog, Hyenas di Creative Assembly e Suicide Squad: Kill the Justice League in Rocksteady.

Schreier also reports anecdotes of industry “horror stories”, such as features canceled at the whim of executives o teams working on content already slated for deletion because of poor internal communication.

In conclusion, while the graphical improvement contributes to the increase in costs, Schreier points out how inefficient and short-sighted corporate management is an equally determining factor in inflating modern video game development budgets.