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I went to read the first comment to that video and someone plainly came out to say that the guy in the video didn’t really answer the question.
So, I think that alone spares me and others the time to waste 17 minutes on some guy who for the life of him, can’t get to the point of his headline. Much less, answer the questions that needed the answers, in his opinion.
The commenter was wrong
It’s not that long of a video, and he gets to the answer fairly quickly, then outlines examples using back of the napkin math. (average cost per developer per month) * (months of development) = cost of game. And then it’s the difference between real world numbers for those in 2015 and today. Average salaries have gone up, especially in major cities in the US, as have staff sizes to make AAA games, as has time needed to develop substantially larger games than we typically made in 2015, and that number balloons very quickly.
I think anyone with a fairly basic understanding of economics (and that is admittedly a declining number in many places) understands the idea that “salaries and benefits are expensive”.
What he doesn’t explain that would actually be helpful is why teams are so big. Like what are all the departments that work on AAA titles, what do they do, how many people on staff relative to other departments, what does a 3D modeler make vs. a gameplay programmer?
He also doesn’t talk about anything outside of staffing, like marketing, cinematics, voice acting, localization, bribing Geoff Keighley…
This would all be more useful than the baby math lesson provided.
What he doesn’t explain that would actually be helpful is why teams are so big.
Can you not see the difference in money on the screen between Halo 1 and Destiny 2? One person can make Halo’s relatively simple models, complete with nutcracker-esque mouth syncing, much faster than you can make the likes of Destiny’s quest givers with far more complexity to them. So if you want to make more of those kinds of NPCs, you need more people making them. The same goes for any other discipline involved in making a game.
Like what are all the departments that work on AAA titles, what do they do, how many people on staff relative to other departments, what does a 3D modeler make vs. a gameplay programmer?
That all comes out in the average cost per employee, which is the same ballpark math the publishers are using to estimate, and he says that in this video.
I’m not sure why so many people are down voting this. The only part I took issue with was what kind of salary Schreier said would make one rich versus middle class in an expensive city. I live in an expensive city, I don’t make anywhere near as much as some of the high salaries he cites, and those who do around me are certainly rich.
People fail to realize how rich the 1% really are was his point. Even $500k per year still wouldn’t get you into that tier of rich.
Johnny Harris made a good video about how far removed from regular society the real rich people actually are. https://youtu.be/PpyPB3BF-hQ
There are for sure tiers of how rich you can be. But when you’re beyond the point of financial stress and can at any time stop working for the rest of your life and not worry about making ends meet, I think most of us would call that rich. If you’re pulling in a quarter million per year, even in an expensive city, the slightest bit of sense with your money allows you to accumulate wealth so quickly that I think you qualify.
I don’t think you are right with this. I live in one of the most affordable major cities and if a family is not running on 6 figures then your likely in the red unless you somehow have a very cheap situation. Lets assume 2 bedrooms here btw which I don’t think most people would consider high on the hog space. Now its true that technically you have all the overage to squirrel away but most folks have a hard time living on the edge of being in the red frugally. Once you have money you would like to have that lifestyle of going out once a week (especially if your job is stressful) and being able to take that once a year vacation. So yeah you have an extra 150 but 50 of that goes to taxes and the other 100 can be eaten up fast by wanting to live in a free standing house and having newer things and such. You will be able to fund your retirement well and live well wihtout concern but you won’t be able to stop working for the rest of your life unless you again live like a pauper for a few years to save enough and then live off of that like a pauper or go move to the boonies and that does not even broach if you have some sort of medical issue while your not working for the rest of your life. Its comfortable not rich. I mean I would not even consider a second home and car rich but that is because I am old enough to have seen a time when that was achievable for middle class. I would say rich is you could stop working and afford full medical insurance in the us while having a house and vacation house and new stuff.
The combined income of my wife and I comes in under one of the figures he gave, and with a 2 BR apartment in NYC, we are very, very comfortable, even after splurging the past few years on a far nicer location for an extra $1k/month in rent. The rest of what you describe is what I would call lifestyle inflation, and I’m not living the life of a pauper because I don’t own a car; if anything, that’s extraordinarily wasteful around here, and it’s something that less than half of this city even bothers to do.
yeah with two incomes and no significant medical issues. believe me one income and a spouse who is sick would change your situation quick. And I get you live comfortably but can you stop working and live comfortably. Im just arguing he point of where one could be truly rich not just doing decently.
But that’s what I mean by how quickly you can accumulate wealth at a quarter million per year. Of course something could go wrong early in your career, but the average case is far better than that. Could I stop working and live comfortably? For a while. We’d have a lot of runway, far better than a 6-month emergency fund. Given a bit more time and saving into index funds, that can become indefinite, and that’s on our far-lower salaries than Schreier lists.
