Game development budgets are exploding. Spider-Man 2 (2023) cost around $315 million, more than triple the first game’s $100 million budget in 2018. Call of Duty went from 657 contributors in 2008 to over 9,000 in 2023, with budgets reportedly exceeding $700 million. Yet players are spending less time in games than they were just a few years ago.
The math doesn’t add up. Game studios are pouring in more money, time, and talent, but returns are shrinking.
Let’s take a closer look at what’s causing this spike in cost, and what developers can actually do about it.
Game Budgets Are at All-Time Highs
At industry events like XDS 2024 and GamesBeat LA, data was shared showing that AAA game budgets now regularly fall between $300 to $500 million. Some titles push well beyond that, especially as teams grow and scope expands.
These figures don’t include marketing, which can often match or exceed development costs. One publisher reportedly spent $660 million on development and another $550 million on marketing.
Even mid-tier games are seeing budgets climb due to longer dev cycles, asset complexity, and increasing player expectations.
What’s Driving the Cost Increase?
At XDS 2024, over 30 developers and service providers shared the biggest contributors to rising costs. Their responses fall into four key categories.
Content Complexity
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Players expect larger maps, more quests, and cinematic content
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Better graphics and physics increase asset creation time
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Games must ship across more platforms with custom optimizations
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New features like live services and destructible environments take more effort to build and test
Market Pressure
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Sequels are expected to be bigger and better than the last game
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AAA games now compete with polished mobile titles backed by $500M budgets
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Launch windows are packed, so even successful games delay to avoid the crowd
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More time is spent researching and testing before greenlighting production
Talent and Team Growth
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Hiring specialized talent is expensive and competitive
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Ramp-up times are longer, especially with in-house engines
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Post-launch polish teams are larger and stay on longer
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Compensation gaps and industry competition are inflating salaries
Executive Pressure
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Shifting feedback from executives leads to costly reworks
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Ambiguous creative direction causes teams to rebuild or delay
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More layers of approval slow decisions and increase iteration cycles
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Everyone wants prestige quality, but not everyone agrees on what that means
And Yet… Players Are Playing Less
In 2020, the average U.S. gamer played about an average of nearly two hours a day gaming or using computers for leisure, up from just over an hour in 2019. By 2024, that number had dropped to around 79 minutes a day. A 2023 survey also showed that most U.S. console gamers now play only one to five hours per week, while just 11 percent spend more than 20 hours.
At the same time, according to NewZoo Global Games Market Size, revenue growth in the global gaming market has stalled.
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2020: +24% growth
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2022: -5.1% contraction
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2024: Estimated at $187.7B, which is $5B less than 2021
So while development costs have gone up, player time and spending have not followed the same trend.
What Can Studios Actually Do About It?
Studios today face a tough balancing act. Layoffs are happening across the industry, but games still need to meet growing expectations. Instead of choosing between cutting quality or breaking the bank, here are three things you can do differently.
Embrace Strategic Co-Development
Not just outsourcing. Real co-development involves working with external teams who integrate with your internal processes. They can own parts of the pipeline, from level design to live ops support.
With the right partner, you can:
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Reduce your core team size
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Access specialized talent faster
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Avoid long onboarding cycles
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Keep production moving, even during delays
This is how Devoted Studios supports internal teams. Our co-dev approach helps manage quality and scale, without ballooning internal costs.
Plan Smarter, Not Just Bigger
One we know is that throwing more people or money at a project doesn’t always solve the problem.
Studios that succeed in the current climate are:
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Building modular pipelines that allow reuse and flexibility
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Launching content in chapters or live updates to spread cost
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Aligning creative and executive vision early in pre-production
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Prototyping early and often to reduce late-stage churn
Nearly 70% of developers say they’re being asked to do more with less, according to the 2025 Unity Gaming Report. And around 45% are turning to productivity tools to move faster, while 24% are focused on getting more value from their monetization and live ops budgets.
So it’s all less about making everything bigger, and more about designing development to be adaptable. The result is not just better games, but healthier teams and more sustainable budgets.
Delay the Right Way
Delays happen. But keeping your full team active during polish phases burns through the budget fast.
Instead:
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Lean on external teams for polish and asset fixes
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Let internal teams focus on tuning and final integration
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Plan co-development capacity into your project timeline, not just as a backup
What This Means
Game development costs are rising fast, driven by larger teams, more complex content, and shifting market realities. At the same time, player attention and revenue growth have slowed. Studios must build differently if they want to stay competitive.
Co-development isn’t just a cost-cutting tool. It’s a way to bring flexibility and focus to your production process. The studios that embrace it early will be better prepared to ship the games players love, without breaking the budget.
