Cost to Develop a Video Game: Factors and Estimates

The cost of developing a game varies significantly, depending on types, platform, genre, game development engine, project scope, etc. This blog discusses the key factors, basic budget calculation methods, stages of development, and other aspects that influence budget, providing valuable insights into effective cost estimation.

Over the years, the gaming industry has evolved, pushing boundaries of innovation, and creating immersive experiences that captivate millions of players worldwide. This evolution has affected video game development costs significantly. Now, it has become difficult for investors to estimate ‘how much it costs to develop a video game.

Well, it all depends on the type of game and how big it is. Still, before investing in game development, you must think about:

What makes some games more expensive than others?

How much money goes into making small games, big games, and everything in between?

The different parts of making a game and what they cost

How new technology is changing game development costs?

You can plan your budget accordingly if you know the estimated prices and avoid cash burning unnecessarily. Our blog will help evaluate these factors and calculate the budget you need to keep aside for your game. So, let’s get started!

Core Factors Affecting the Cost of Developing a Video Game

Before we talk about factors, we must do the basic maths for budget estimation. It is a general formula you can apply while calculating the budget for your game project. Let us comprehend it through an example.

Suppose you need a 2D hyper casual game in portrait mode and you approach a game development company to build it. They suggest you hire a 2D designer and game developer for 2 months and you do so. Here is how you will calculate the amount:

Estimated Budget = Starting from $16000

This is the basic amount required for game development in our opinion. However, it can differ according to your game type, requirements and if you are hiring resources for less/more amount or time. Now, let’s move on to the factors.

To be precise, several core elements drive the expenses involved in creating a game, from the initial concept to the final product. Following are the most important ones:

1. Game Genre or Type

The genre and type of the game significantly influence the required resources. For instance, puzzle games are generally less costly than role-playing games (RPGs) or first-person shooters (FPS). Furthermore, the cost of Indie game development will be less compared to other genres as they require smaller development teams and fewer resources.

Mobile games are often less expensive to produce due to their typically simpler graphics and gameplay mechanics. In contrast, PC or console games usually demand higher budgets to meet expectations for superior graphics and more intricate systems.

In essence, the game type sets the stage for many other budgetary decisions. It influences the size of the development team needed, the duration of the development process, the technologies required, and even the marketing approach.

2. Game Complexity and Scope

Think of it like building a house – a small, simple house costs less than a big, fancy one. It’s the same maths with game development budget estimation. When a game is large and more complex, it takes longer to develop. Instead of just a few folks, you might need a big team with different experts for game design, visual appeal enhancement, UI/UX design, sound design, animation, etc.

It’s important to note that while increased complexity and scope generally lead to higher budgets, this relationship isn’t always linear. Sometimes, small increases in complexity can lead to disproportionate jumps in cost. For instance, adding multiplayer functionality to a game that was originally conceived as a single-player can have far-reaching implications for networking infrastructure, server costs, and ongoing support.

3. Team Size and Geographical Location

Team size directly correlates with labor costs, which often constitute the largest portion of a game’s development budget. Larger teams, while capable of handling more complex projects and potentially shortening development time, inevitably lead to higher payroll expenses.

It includes not just salaries, but also benefits, equipment, and workspace costs. Conversely, smaller teams may reduce immediate costs but could extend development timelines or limit the project scope. 
Moreover, resource hiring costs vary dramatically across different regions and countries. Developers in regions, like North America, Western Europe, and parts of East Asia (Japan, South Korea, etc.) generally demand higher salaries. You’d have to pay less if you hire game designers from countries like India, China, Brazil, Ukraine, and other Asian regions.

4. Game Development Engine

Usually, game developers prefer using game engines, including Unreal Engine, Roblox, Unity, or HTML. Different engines have varying licensing models. For example, Unity offers a free version but takes a percentage of revenue for successful projects. On the other side, Unreal Engine is free to use but requires a 5% royalty on gross revenue above a certain threshold.

Engines that support cross-platform game development, like Unity or Unreal Engine, can significantly reduce the game development cost for multiple platforms. Engines with a wide array of built-in tools (e.g., animation systems, physics engines, asset management) can speed up development and reduce the need for third-party tools.

These are not the only factors that you have to take into account. Many other factors, such as development efficiency, asset creation, and management, features and tools, platform optimization, etc., also influence the development cost.

5. Required Tools and Technologies

As the industry has evolved, many tools and technologies have been introduced to make games more immersive. You might have to pay more for using technologies like Metaverse, Blockchain, Cloud, AR/VR, AI ML in gaming, etc.

Moreover, different tools and technologies have varying hardware demands. High-end 3D modeling and rendering software often require powerful workstations. The use of AR VR in game development might necessitate specific VR headsets and controllers.

The choice of tools and technologies affects not only the immediate costs but also long-term efficiency, product quality, and the ability to adapt to changing market demands. Developers must carefully evaluate their options, considering both the immediate financial implications and the long-term benefits and potential savings each choice offers.

Also, if you are hosting servers from the game design company, they will charge you $0.05 per API request once the user number crosses 2 hundred thousand.

6. Game Development Timeframe

The most direct impact of timeframe on budget is through labor costs. Longer development periods mean extended salary payments for the entire team. However, this relationship isn’t always linear as extended timelines might allow for a smaller, more efficient team, potentially reducing overall labor costs.

Shorter timelines often require larger teams or overtime work, which can increase costs dramatically. Very long projects risk team burnout and turnover, leading to additional hiring and training costs.

A Detailed Analysis of Game Development Costs

The financial aspects of game development are spread across multiple stages, each with its own set of costs. Below is a detailed overview of the typical costs at every phase:

1. Pre-Production Cost of Making a Game

In pre-production, game scope plays a role, and you will have to hire extra resources like business analysts to create and use game storyline and define mechanics and overall concepts. Both of them will work on the initial concept and decide how the game will look like.

If you have already defined the scope, you can skip hiring extra resources and hire game designers to develop a game prototype and wireframe. Usually, the pre-production phase lasts for 2 months. Let’s do the basic maths.

Budget estimation for pre-production = Starting from $2000

(With a game scope, the budget will vary due to the timeframe.)

2. Production Costs: Salaries, Assets, and More

Small to medium-sized games typically fall in the range of $25,000 to $200,000, with development timeframes spanning from six months to two years. Larger, more complex games often require budgets between $5,00,000 to $3 million, usually taking two to three years to complete.

These costs primarily cover expenses related to:

• Resource hiring
• Concept art creation services
• Game character development
• Game-level design solutions
• Environment modelling
• Game weapon designing
• Sound effects and animations
• Game UI/UX design services
• Game testing

These figures are estimates, and actual costs can fluctuate significantly based on specific project requirements and unforeseen challenges that may arise during development. Some projects may fall outside these ranges, potentially exceeding these estimates.

3. Post-Production Costs to Consider

Post-production costs typically range from 10% to 25% of the total development budget. If you hire a high-end game development company, they will offer support and maintenance services for 3 months after the game development.

After this period, you must avail of their services or hire game developers to safeguard your game from bugs and other security vulnerabilities.

Additionally, for games with ongoing support models (like MMOs or live service games), the line between post-production and live operations can blur, potentially extending this phase and its associated costs.

For marketing and distribution, you must allocate 20% of the overall game development budget to see significant results. You can also hire motion graphic designers to create game trailers and digital marketing experts to seek guidance.

Cost Estimates for Different Types of Video Games

Estimating the costs of developing video games involves a comprehensive understanding of the various requirements and resources needed for each genre. Here’s a detailed breakdown of these costs for various game genres:

AAA Game Development Cost

AAA game development is a massive undertaking, typically spanning 2-3 years and involving a team of highly skilled experts at various stages.

You may need to hire 10 to 15 resources to build a basic-level AAA game. The team composition is as follows:

• 3D game concept artists
• UI/UX designers
• Backend game developers
• Graphic designers
• Sound engineers
• 3D animators
• Testers
• Server administrators

You may need to hire 10 to 15 resources to build a basic-level AAA game. The number will vary if it’s a messy multiplayer game or resembles popular battle royale games or other famous titles like GTA 6, Fortnite, Red Dead Redemption 2, Call of Duty: Warzone, etc.

Here is AAA game development cost breakdown:

• Development Time: 2-3 years (can vary based on complexity)
• Team Size: 10-15+ resources (may fluctuate during development)
• Estimated Total Cost: starting from $9,60,000 (basic game)

The high risks associated with AAA game development cost explain why major publishers are often cautious about greenlighting new projects and think before making an investment. Despite these challenges, the potential for massive financial success and cultural impact continues to drive investment in AAA game development.

Mobile Game Development Cost

A mobile game development cost is less compared to a AAA game as the development process requires fewer resources and shorter timelines. Here’s a brief of the breakdown:

• Development Time: 6-12 months (can vary based on complexity)
• Team Size: 7-10 resources (may fluctuate during development)
• Estimated Total Cost: starting from $30,000 (basic game)

If you need native games then iOS or Android game development costs will differ in amount. Factors like development tools and environment, programming languages, device fragmentation, testing, app store fees, testing, etc., may influence the overall cost.

Development costs may be slightly higher for Android, the potential user base is larger, which could lead to higher revenue potential. The choice between platforms (or developing for both) often depends on the target audience, budget, and long-term goals of the project.

Console and PC Game Development Cost

A PC game development cost is generally higher than a mobile game. However, it’s hard to compare PC and console game development costs as both have similarities and dissimilarities. They have higher graphical fidelity, more intricate gameplay mechanics, and often larger scope.

If we talk about dissimilarities, console systems appeal to mainstream audiences and often feature exclusive titles that drive console sales. On the other side, PC games cater to large audiences and are primarily distributed digitally through various platforms.

Now, let us look at basic game development budget estimates:

• Development Time: 12 months (can vary based on complexity)
• Team Size: 7-10 resources (may fluctuate during development)
• Estimated Total Cost: starting from $50,000 (basic game)

You can also consider cross-platform game development to release the game on both consoles and PC simultaneously. It will save cost, attract more players and add on to return on investment.

AA Game (Mid-Tier) Development Price

AA games occupy a space between Indie games and AAA game titles in the video game industry. These projects typically have moderate budgets and team sizes, allowing for more creative risks while delivering a polished experience.

AA games often focus on specific niches or genres, catering to dedicated player bases rather than trying to appeal to the broadest possible audience. This approach allows developers to experiment with innovative gameplay mechanics or explore unique narrative concepts that might be considered too risky for big-budget productions.

Its basic budget usually comes around:

• Development Time: 12 months (can vary based on complexity)
• Team Size: 8-10 resources (may fluctuate during development)
• Estimated Total Cost: starting from $80,000 (basic game)

AA games often find success through digital distribution platforms, which allow them to reach global audiences without the high costs associated with physical retail distribution.

Massively Multiplayer Online Game (MMO) Budget

Developing a Massively Multiplayer Online Game (MMO) is one of the most complex and costly endeavors in the gaming industry.

The budget for an MMO can vary widely depending on its scope, but here’s a general estimation breakdown for a basic scale MMO project:

• Development Time:   1.5 to 2 years+
• Team Size: 10 to 15+ resources (varies throughout development)
• Estimated Budget Range: starting from $1 million+

Hidden and Miscellaneous Cost Breakdown in Game Development

There’s the “Unknown Unknowns” factor – unforeseen issues that can arise during game development, from hardware failures to sudden changes in the market landscape, which may require additional resources or attention.  Here are some of the factors that may impact the budget:

Legal and Administrative Expenses

You may have to pay legal fees or buy a license for certain projects. Also, many game engines charge subscription fees to offer access. So, it might add to the overall cost if your game demands access to these platforms.

Server Maintenance for Online Games

Costs include server hardware, hosting, and data centers to ensure low latency and reliability, as well as bandwidth, electricity, and cooling for physical servers. Scalability solutions for handling traffic spikes, backups, disaster recovery, real-time monitoring, and compliance with data protection laws add further complexity and cost.

Localization

Localization is a hidden cost that grows with a game’s intended reach. You’ll have to invest money to translate the game into multiple languages, hiring voice actors for different locales, and adapting content for various cultures can be unexpected expertise.

Unexpected Expenses

You can count additional features, game scalability, updates according to the latest game development trends, sudden changes in technology, company, or resources, etc., in the estimated budget. You may have to buy extra assets or go for marketplace purchase which will add on to the cost. Hence, you must keep extra money in hand to deal with unexpected situations taking place during the development process.

Ultimately, estimating the cost of making a game can be daunting but the industry’s diversity shows that there is room for projects of all sizes. However, there’s no one-size-fits-all approach to game development costs. Each project is different, with its own set of pros and cons. You need to align your ambitions and game concepts with resources and plan meticulously.

300Mind: The Preferred Partner for Reliable Game Development Solutions

300Mind is the go-to partner for availing cutting-edge game development services. With years of experience in the industry, our team of skilled professionals is dedicated to transforming innovative concepts into captivating gaming experiences that resonate with players and stand out in a competitive market.

Our comprehensive approach to game development ensures that we address every aspect of the project, from initial concept and design to final release and post-launch support. We specialize in crafting high-quality games across various genres and platforms, including mobile, console, and PC.

Whether it’s a small Indie game or a large-scale AAA title, we have the resources and flexibility to meet diverse project requirements. By leveraging advanced technologies and adhering to best practices, we ensure that each game we develop meets the highest standards of performance, aesthetics, and user experience.

FAQ on Cost to Develop a Video Game

WRITTEN BY Pradeepsingh Rajpurohit

Pradeep Singh Rajpurohit is a 3D Artist with more than 2 years of experience in 2D & 3D gaming/console gaming/AR/VR gaming and design. Requirement understanding, assets creation, provides solutions in terms of visuals to make the game experience smooth and engaging.