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Where does the money go in development?


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#1
Guest_The Mad Hanar_*

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Obviously, games cost a lot of money to make, otherwise they would not need to sell as many copies as they do to make a profit. I have a really really really basic understanding of the development process. I took GDD classes for my first semester in college. The only real thing about game development I understand is the actual programming. It takes AGES to write the code for even the most basic game (at least for me). Basically, I know what goes into making a basic XNA game. What I don't understand is where all of this money for game development goes to. 

Is the programming or engine a part of it?

Does it go into the voice actors and advertisement?

Is it just because games require a large amount of animators, artists and programmers?

Do the questions I asked cover most of the monetary costs of developing a game or am I missing something? I genuninely want to know because it's a really interesting concept to me. Modders can add whole enitre sections to games (such as the modder add-ons for Skyrim) with very little monetary backing. Is this because they aren't paid, or is it because the resources are already in place? 

I don't know, this is probably more obvious then I am making it out to be. It would be cool if some people who have insight on this can fill me in. 

#2
Beerfish

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You start paying for people as soon as a small group sets up to get a concept together.

A good deal of prep work needs to be done to see if the game is even feasible and some kind of draft is sent to the higher ups.

Once the game is in development there are a whole slew of technology and departments that have to work on it.

Concept art
Writers
Q & A
All of the project leaders and project managers
Art department
Animation department
Programming
Sound department
Music
Voice acting
Tools programming (The game makers such as the guys making the cutscenes, the people making dialogue in a dialogue editor etc need in effect a toolset of some sort.)
Marketing and promotion

I'm not sure if they include certain over head costs in a games development but there has to be someone in IT support, servers and data backup, human resources, Payroll, maintenance of work areas...etc

I am not sure how they track which project people are working on at any one time as the work force has to be fluid. (As in some people are working in game A, while others are working on game B but then shift to game A at the appropriate time.)

Like any large project there is a lot of true 'project management' that goes one. They probably use some kind of software, either internal or something like msproject to help out.

#3
Naughty Bear

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I don't understand why it costs money to make an engine.

#4
Arcian

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The biggest chunk of the budget goes to marketing. It is the single most expensive part of launching a new game. Same goes for the movie industry.

#5
Beerfish

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Naughty Bear wrote...

I don't understand why it costs money to make an engine.


Not sure I understand this.  There has to be a system for grpahics to show up on a screen and do certain things.  In a fair number of cases one a game engine is built other companies than the one that built it will use the engine and license it.  (At times tweaking the engine to make it more efficient or do more.)

#6
Beerfish

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Arcian wrote...

The biggest chunk of the budget goes to marketing. It is the single most expensive part of launching a new game. Same goes for the movie industry.


Depends on the game title I think.  Huge titles like GTA or Halo moreso than medium level games. 

#7
Cyonan

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I'd imagine that development team and marketing are the two biggest costs for AAA titles.

Major companies spend pretty absurd amounts of money on marketing their big titles(which must apparently be paying off if they keep doing it), and when you've got a team consisting of 100+ people making the game you can very quickly ramp up the cost of having to pay them.

You also have to pay for the engine one way or another. Either because you had to pay your programmers to make one, or because you're paying licensing fees for another one.

In a game like Mass Effect you're also paying your voice actors which, depending on who you have, could cost a pretty decent amount I imagine. This is probably why Chris Metzen is half of Blizzard's voices.

#8
Guest_EntropicAngel_*

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Cyonan wrote...

In a game like Mass Effect you're also paying your voice actors which, depending on who you have, could cost a pretty decent amount I imagine. This is probably why Chris Metzen is half of Blizzard's voices.


Let's not forget the Elder Scrolls.


This question is something I'm finding particularly interesting, especially with Star Citizen. 24 million dollars and the altimeter is barely slowing. What, just WHAT are they going to end up doing with all that money? Their stretch goals are actually very very cool, gives a bit of a glimpse at what extra funding can do for the game.

#9
Naughty Bear

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Beerfish wrote...

Naughty Bear wrote...

I don't understand why it costs money to make an engine.


Not sure I understand this.  There has to be a system for grpahics to show up on a screen and do certain things.  In a fair number of cases one a game engine is built other companies than the one that built it will use the engine and license it.  (At times tweaking the engine to make it more efficient or do more.)


But why is it costly to make one? At least I read in the past that it is costly.