Full post: Exact budgets of video-game productions can be tough to corroborate (more transparency from publishers would be nice!) but the numbers I’ve heard floating around AAA game dev these days are $300 million or more — sometimes much more! — which I think helps explain the current state of the industry
To address some frequently asked questions:
- These are US and Canada productions. If you’re wondering why game X cost so much less, it was probably made elsewhere
- These budgets are almost entirely dev salaries + overheard and have nothing to do with executive compensation (which is mostly stock)



Halve the employees and double the salary, and you’ll be closer. Few people on a team will gross $120k, but benefits are part of that cost too.
And taxes.
I’m not a tax expert, but I think the taxes are applied after gross. Taxes on money coming in, not going out. So that ~$120k is what the company spends, but it’s not what the employee sees.
Sorry that I was not more clear. The company is paying the employee 120k gross, yes, but then also paying other things behind the scenes like other taxes and unemployment insurance, etc.