As current games deteriorate intricately and sophisticatedly, their average expenditure on development rises. AAA games may cost more than $1 billion to make. The price of creating a mobile game is determined by a variety of variables, such as complexity, layout, structure, and capabilities. On the median, an elementary mobile game runs between $10,000 and $50,000. This is a scary amount for upcoming developers. This breakdown of game production costs should assist you in budgeting for your next project and comprehending what to expect.
Why does game development cost so much?
Gaming is a common pastime, and the global pandemic has further fueled that fire. Since those dismal days, worldwide video game industry revenues were projected to cross $200 billion in 2022. The rate at which the gaming industry grows year after year may indicate that the estimate above is quite conservative.
More and more people a) start playing games and b) are willing to pay for them or in-game products. This post provides you with a video game budget breakdown so you can begin estimating how much you need to invest to create a good game and how to optimize your expenses along the way.
Investing in games might seem to be expensive, while demand for games keeps rising, as does profit from them. Precise figures for the previous year are still not accessible, so it is anticipated that the industry's value will go up by 14.4% in 2021, reaching $178.37 billion, with sales jumping by 63%.
The video game development costs are predicted to be valued at $178,73 billion in 2021, up 14.4% from 2020. This is an enormous change from the prediction made in 2016, which was for a total worth of $90,07 billion for the same period – a 76.8% variance between the two estimates, indicating that growth may accelerate further. Furthermore, current predictions forecast the video game business to be worth $268 billion by 2025.
Types of video games and their development costs
How much does it cost to make a video game in 2025? Production alone costs between $50,000 and $700,000. Consider key aspects that influence a budget to arrive at a more realistic estimate. Keep in mind that charges will vary depending on the developer's seniority. For example, in the United States, senior Unity developers earn between $60 and $70 per hour and junior staff earn between $30-34/hour. Developers' wages are also affected by how rare the technology you want them to work with is. If it's an unknown, new SDK — and you want them to be really proficient at it — payment expectations might go higher.
On average, the game development cost breakdown calculation can be reduced to the following table:
| Kind of games | Minimal budget for production |
| Indie | $40 000 |
| AAA | $200 000 |
| Mobile | $4 000 |
The size of the development team varies depending on the game's vision and the team's capabilities. In comparison, Minecraft was created by one person, while Warhorse Studios started their projects with a team of 11 people.
Indie game development costs
The average independent game budget is between $50,000 to $750,000. 55% use crowdsourcing platforms such as Kickstarter. The same percentage of independent game developers use Patreon for additional funding. The average indie game creator earns $30,000 annually from game sales.
With a median compensation that would raise a few eyebrows among our corporate colleagues, it's no surprise that 61% of indie game creators continue to juggle their passion projects with day employment. The male-dominated scene may not surprise anyone who has seen the gamer cliche, though the standard age of these developers is 32, indicating a maturing sector. And, while nearly half work in small groups, it's apparent that individual hustle and grit are essential in this digital age.
AAA game development costs
How much does it cost to make a game that breaks minds of customers? For AAA studios, the expense of making video games is now comparable to that of Hollywood productions. While Genshin Impact initially cost "only" 100 million US dollars to build, the online game's continued development costs of 200 million dollars per year bring the total to 900 million US dollars, with no end in sight.
In addition to production costs, video game marketing costs are a considerable portion of the game development budget. The mobile multiplayer board game Monopoly GO swiftly rose to the top of the mobile gaming charts and has been there ever since. Some of this success might be credited to game developer Scopely's aggressive marketing spending, as the company stated that it had spent $500 million on marketing and user acquisition. Video game budgets for Triple-A games begin at $10 million.
Mobile game development costs
Mobile game development costs usually range from $3000 to $150000. This sounds a bit scary for just an app on your phone, but it's not quite what it seems.
Subscription rates for sound design software such as Wwise and FMOD begin at $750 and $2,000. You would also require software for 3D modeling (Maya, Blender), graphic design (Photoshop, SAI), data and project management, and so on.
You'll also need to pay for data storage, servers (in AWS), and analytic systems to track player behavior. Furthermore, if you want the game to be released on consoles or in mobile play markets, you must pay console manufacturers (for their development kit) or prepare to offer the publisher a portion of your earnings from in-app purchases or downloads (App Store, Google Play).
How to Calculate Video Game Development Budget
Now that you know the general picture, let’s dive into specifics.
Development Team: The Salary
The average team of developers is a group of at least 5 specialists:
- Game Designer. This person implements all the details from a game design document (GDD), develops the world’s system, designs levels, internal economy and balance, UX, monetization mechanics, gathers narrative together, integrates interface-related controls, etc. Their services’ cost per hour is $40/hour in the USA and about $30-$32/per hour in Europe.
- Developers. Developers work with game engines (Unity, Unreal Engine, Godot, Phaser, internal custom engines) and write in C++, C#, UnrealScript, Java, etc. to code through the game’s physics, art assets, mechanics, internal behaviors, etc. Their hourly rate is at the average of $48 in the US, and about $32-$38 in Europe.
- 2D/3D Artist & Animation Artist. People who make everything beautiful & moving. Animators are paid $16/hour in Europe, and $30/hour in the USA, on average. Game 2D/3D artists get $26-$36/hour (but those who do assets for 3D games are usually paid more.)
- Sound/audio engineer. An audio engineer creates and masters SFX, creates genre-related ambiances, curates soundtracks, works with voice actors, and edits voice samples. In Europe, audio engineers charge $10-$20/hour. In America, the average rates range from $22 to $55.
The budget of your product will depend on:
- Where your team is;
- How many people are in your team;
- Team members’ hourly rates;
- The urgency and complexity of a project.
Let’s calculate it together using the formula below:
Suppose there are 7 members in the team, and, together, their average rate is about $32/hour. The game is mid-sized — the production will take about a year. Your estimated game cost is ($32x8)x7x20)x12=$430,080, if you’re working with a team from Europe.
Developers aren’t the only people you’ll need for game development. Project managers, character and environmental artists, narrative writers, game economy designers, and other specialists are often important to create a compelling player experience, too. Understand what aspects of the game — aside from development — you’d want to focus on from the start and allocate costs accordingly early.
Software, Software Licenses, And Data Needed For Development
Add costs of software licenses, plugins, and services your team will use in the estimate.
You’ll definitely need a game engine. Game engines Unity and Unreal, for instance, charge nothing if the game doesn’t make $1 million. GameMaker Studio’s subscription tiers range from $4.99 to $79.99/month. There are open-source free options like Cocos2D, too. Paid ones need to be renewed every month or year.
Subscription prices for sound design tools like tools Wwise and FMOD start at $750 and $2,000. You’d also need software for 3D modeling (Maya, Blender), graphic design (Photoshop, SAI), software for data and project management, and so on.
You’ll also need to pay for data storage and servers (in AWS) and analytic solutions that’ll help you track players’ behavior. Plus, if you want the game to be released on consoles or in mobile play markets, you’d need to pay console manufacturers (for their development kit) or to get ready that a part of your revenue from in-app purchases or downloads will be given away to the publisher (App Store, Google Play).
Intellectual Property
Mind the ownership rights for soundtracks, images, and other in-game assets. If you want a cool song to play in your game, buy the rights to use it. Also, you can’t take Trinity from The Matrix: Path of Neo as a character for your game and can’t use Harry Potter’s world as your setting without paying for an IP.
Patents
Patent protection extends to technical solutions, mechanics, and hardware. For example, to use the Nemesis AI from Middle-earth: Shadow of Mordor in your game, pay WB Games for the patent.
Designs
This concerns logos, character’s design, magic animations, etc. — they have to be unique or you have to pay to put them in-game. Also, if you work with independent freelance artists, buy rights to use their work as well.
Purchasing The Right Equipment For Development
The equipment you’ll need for your game affects the budget. (Even if you work with a third-party partner, the skills of working with specific devices justifiably add to your team’s hourly rate.)
For Development
You’ll need to buy different devices for testing a game: old and new consoles, devices on iOS or Android platforms (iPhones, iPads, tablets, etc.), Nintendo Switch, PCs with different characteristics. VR games will require VR headsets. Plus, people who work with game engines must have powerful PCs/laptops to withstand the pressure of rendering.
For Content Creation
Add to the estimate the rates of voice acting and renting a studio (or equipping it by yourself.) Artists and animators will need drawing tablets, powerful PCs, and monitors with good image resolution.
Post-Development Costs
Post-development expenses impact the real costs of video games, too.
Testing
Quality assurance, testing experts build confidence in the level of quality of the game, find defects and failures. The budget for testing will depend on when you start testing and what type of testing the game needs. Assign 10% of the whole budget to QA and testing. Their hourly rate is $9–$35 on average, depending on the country and type of testing they perform.
Marketing
Marketing activities should begin in the background of the production. Cooperate with streamers and game journalists, be active on social media, do everything to show people what you develop and why it’s cool. The marketing budgets are hard to estimate because they’re extremely dependent on how much you’re willing to pour into promotion.
Applying the Cost Minimization Strategies
Now, let’s get to three ways you can cut all these costs.
Automate. Introduce automation in testing and QAs, patching, updating, use project management software that allows for establishing of on-demand workload. That will cut costs of repetitive work, streamline the development, and allow your team to prioritize better.
Implement Agile & DevOps practices. Establish better collaboration between backend team and game designers, shorten write-release-test cycles to spot errors and bugs early, add CI/CD practices to integrate testing into development.
Add a QA specialist to your team as early as possible. It will help to prevent defects in future by checking requirements, user stories, design, code, etc. at an early stage.
Outsource. In-house teams are expensive to hire, onboard, and manage, which is why so many big game studios are outsourcing game development (or some aspects of it) to build a game more affordably. For example, you can hire an external team if you don't need to have one on a permanent basis (to do separated tasks like localisation testing, sound design, and others.)
Case studies of high and low-budget games
As technology advances every year, so do the system requirements for new releases. Although Skyrim can be run on refrigerators these days, many players still have old laptops that were considered decent back in 2012.
Old system units are a gold mine for low-budget projects, as Undertale and Terraria are still in high demand. Also, several in-mind games could be contained in the same category:
- Cuphead;
- Limbo;
- Don't Starve;
- RimWorld;
- Darkest Dungeon;
- Katana ZERO;
- Darkwood, and so on.
On average, the development budget for these games ranged from 15 to 50 thousand US dollars.
How much do video games cost when generated by a huge gaming studio? GTA 5 cost $265 million, Final Fantasy VII - $145 million, and Dead Space 2 – $120 million. Depending on your budget, you can choose between a wide world of pixel art with story-driven twists or full-fledged maps with flower fields that convey their scent at a glance.
Choose the Right Company To Develop a Game
To pick a good partner to craft your game, check:
- reputation (reviews, client’s feedback; don’t be hesitant to contact their previous clients!);
- portfolio (case studies, reviews of their games in stores);
- services they provide (are they good at the genre/type of game you’ve chosen?)
- process of producing a game (will they cover the stages of development you want them to cover?);
- hourly/monthly rates (can you afford their rates?)
- advanced tech competencies (are they skilled enough in the industry to continue working with them post-release — if you’ll need, e.g. to expand to other platforms?)
Game Genres That Will Get All The Attention in 2025
Single-player or multiplayer? Puzzle, shooter, or horror? Choose the one from the most profitable categories in 2025:
Massively Multiplayer Online Role-Playing Game
Examples: EverQuest, Blade & Soul, 9Dragons.
Multiplayer Online Battle Arena
Examples: Dota 2, League of Legends, Smite.
Battle Royale
Examples: Ring of Elysium, Cyber Hunter, Spellbreak.
Key takeaways on game development costs
So, how much does it cost to develop a video game? In ancient times, people measured the quality of swords sold by blacksmiths at bazaars with gold coins. Now, the budget is used to measure audience-grabbing features: soundtrack, visuals, or gameplay mechanics. An indie game with a short storyline can be significantly better than an expensive AAA product. Everything depends on the presentation, desire, or a helping hand extended in time.
FAQ
Why Does It Cost So Much To Make A Video Game?
Increased demands – increased prices. Online games form a billion-dollar business with growing revenues year-to-year, so employees who make it happen charge accordingly.
What Is The Average Cost Of A Video Game?
A typical video game’s cost for production alone is $50,000–$700,000.
How Much Does It Cost To Develop An AAA Game?
Video game budgets for Triple-A games start at $10M.
What Are Video Game Budgets?
The budgets start at several thousand dollars and skyrockets, depending on skills, technology, and promotion that need to be involved to launch it successfully.
Why Is Video Game Development So Expensive?
Game making is a lengthy and labor-intensive process — and good games are extremely profitable.
