How Much Does It Cost to Make a Video Game? Key Factors Affecting Cost

If you are planning to develop a game, you must have thought ‘How much does it cost to make a video game’ and usually there are no definite answers. Most of the guides online say just one thing- ‘it depends on various factors.’ In reality, the cost of making a video game can range from anywhere between $50,000 to $500 million, depending on your game type and complexity. 

This is because different types of games (indie, AAA, or mobile) each have different requirements and challenges, which creates huge differences in their overall budget. In this blog, we will break down the video game development costs, discuss the various pricing factors, and also list some games and their development budgets. 

Let’s get started. 

How to Calculate Video Game Development Cost?

You must have heard that the cost of developing a video game depends on several factors and their complexity. But do you know what it really means? In fact, it is quite simple. The cost is determined by the number of people working on the project and the amount of time spent on developing the game. 

So, more time and a larger team means higher development costs. There is a simple formula that you can use to calculate the overall budget of your video game. 

(Rate x Number of Working Hours) x (Employee x Number of Working Days in a Month) x Months of Work

• Rate: Average salary of a developer
• Employee: Number of Employees

Let’s take an example. Imagine, 20 people are working on your game project with an average salary of $50 per hour. The video game development company has provided an estimated timeline of six months. The average working hours is 8 hours and 20 working days in a week. 

(50 x 8) x (20 x 20) x 6 = $960,000

This is the estimated cost of your video game development budget. However, it is also important to factor in that the team composition can change throughout the project and also the marketing costs, which can range anywhere from 50% to 100% of your total budget. 

Also Read:- Racing Game Development in 2025

What is the Cost of Developing a Video Game?

In this section, we will discuss the costs of developing various types of video games including Indie games, AAA games, and mobile games. 

How Much Does it Cost to Make an Indie Game?

Indie games usually have small development teams and as a result, do not have significantly high budgets. According to top indie game studios, the average budget of an indie game can vary drastically. 

On average, the cost ranges anywhere from $30,000 to $100,000, depending on the type and game genre. However, some analysts estimate that indie game development costs can actually go into millions. 

Misc. A Tiny Tale, an indie game by an Australian developer had a development budget of around $200,000. On the other hand, indie games like Kena: Bridge of Spirits and Neon White cost around $1 million and $2 million respectively. 

How Much Does it Cost to Make a Mobile Game?

Mobile gaming is dominating the gaming space. And while some might think mobile games are cheaper to make than AAA or Indie games, their development budget can go to millions of dollars. 

The popular AR game Pokemon GO had a game development budget of around $600,000. But it easily recouped the entire investment in under a year. In fact, during the COVID pandemic, Pokemon GO’s yearly revenue nearly touched a billion dollars. 

However, not all mobile games require a significant investment. Wordle, the popular word-based game was developed by a single developer with a very unimpressive budget and then sold to The New York Times. 

Also Read:-How to Monetize Games? Video Game Monetization Models
 

How Much Does It Cost to Make a AAA Game?

Now comes the heavy hitters- AAA games. These games are usually made by large game publishing companies like Rockstar Games or CD Projekt Red. Given the scale of these games, the cost to develop a AAA game can range anywhere from tens of millions to hundreds of millions of dollars. 

Red Dead Redemption 2, the popular Western AAA game by Rockstar Games had a development budget of around $200 million to $250 million. But that’s not at all. The developer invested an additional $200-$300 million in marketing. Needless to say, the game became a huge success and is regarded as one of the best AAA open-world games of all time. 

If you would like to know more about the costs of AAA games, you can check out our AAA game development cost guide. 

What Are the Different Factors that Affect the Cost of Video Game Development?

Now let’s discuss the various factors that affect the cost of video game development. As mentioned above, the cost ultimately depends on the type and genre of game you are developing. Here are some common factors that apply to any type of game you develop. 

1. Employee Salaries

One of the primary factors that hike the development cost is employee salaries. Now, this factor can fluctuate largely depending on the timeline of the development project and the location of your developers. 

As your game becomes more complex, you will require more professionals to take care of every aspect of game development. Moreover, the location of the professionals also significantly influences their salaries. For example: 

• USA-based Developers: $100-$150 per hour
• UK and Western Europe-based developers: $80-$100
• India and Eastern Europe-based developers: $50-$80 per hour

2. Cross-Platform Compatibility

Nowadays, most successful games are available across various platforms. Players like when they can start their game session on their desktops and then continue it on their smartphones. However, creating a cross-platform game that functions properly across different platforms requires additional investment. 

Developing a game that is compatible with desktops, consoles, and mobile platforms will require different technologies and different developers who specialize in each platform. This will eat up a major chunk of your game development budget. 

3. Testing the Game App

A successful game must be free of any bugs or glitches before it is released. This is where testing and quality analysis come in. 

Testers identify and fix any bugs, soft locks, or performance bottlenecks that hamper the gameplay experience. While some developers cut costs by testing the game themselves, it is recommended to hire dedicated playtesters and quality experts to ensure proper testing. This is because there are various types of testing, each analyzing a different component of the game. 

• Unit Testing: Each component of the game is tested individually
• Compatibility Testing: The game is tested on different platforms and devices to ensure seamless compatibility. 
• Functionality Testing: This type of testing ensures that the game is free of any bugs, glitches, or game mechanics issues.

4. Game Genre

Different types of games require different development budgets. For example, a simple casual game will be a lot cheaper to develop than a complex RPG or open-world game. However, if done right, casual games can generate significant revenue with a low investment budget. Candy Crush and Angry Birds are classic examples of successful casual games. 

• 2D Casual Games: These low-budget games feature 2D graphics and a soundtrack. Despite being basic 2D games, they offer great potential for scaling up and increasing user engagement. A simple 2D game can cost anywhere from $10,000 to $50,000.
• Mini-Games: Casual or mini-games are basic solitary games that do not require particular skills. It may be necessary to fix a game development budget if you want to add more graphics or have higher expectations for the game app. These games generally cost around $5000 to $15,000.
• Mid-Level Games: These mobile games are well-designed, feature a good storyline, feature character modeling, and have a variety of levels. Players are engaged for a longer period of time due to the depth and variety of content. You will have to invest around $50,000 to $150,000 to make a decent mid-level game.  
• Social Games: These games are played by many users on social media platforms like Facebook. Since there are browser-based games, they are generally very lightweight and can be developed for $10,000 to $20,000.
• AAA Games: A high-level game requires a lot of money, but it pays off if you reach the right audience. These games are incredibly complex and feature vast open worlds with photorealistic graphics. The average cost of developing a AAA game ranges from $1 million to $500 million, depending on the complexity. 
• Role-playing Games(RPGs): RPGs have significantly evolved since their inception. They now feature branching storylines, cinematic graphics, character arcs, and other features that enhance the user experience. A good RPG will cost around $1 million to $50 million to make. 
• First-person Shooters (FPS): These games feature complex shooting mechanics and multiplayer gaming. As a result, they can be quite expensive to develop. An average FPS game would cost around $5 million to $20 million. 
• Open-world Games: These are typically one of the costliest game genres behind AAA games. These games require complex AI algorithms, immersive graphics, and extensive backend development. It can cost anywhere from $1 million to $100 million to make a decent open-world game. 

Game Genre	Estimated Cost
2D Casual Games	$10,000 – $50,000
Mini-Games	$5,000 – $15,000
Mid-Level Games	$50,000 – $150,000
Social Games	$10,000 – $20,000
AAA Games	$1 million – $500 million
Role-playing Games (RPGs)	$1 million – $50 million
First-person Shooters (FPS)	$5 million – $20 million
Open-world Games	$1 million – $100 million

5. Overhead Costs

The entire game development process requires various technologies including game engines, designing software, SDKs, and sound software. 

Independent large development teams incur various overhead costs like rent, electricity, furniture, logistics, refreshments, etc. These overhead costs largely go unnoticed but can accumulate over time into a substantial amount. 

6. Marketing

You can make the most interesting and immersive video game but it does not matter if it does not reach the intended target audience. If you need evidence of the importance of game marketing, remember that Red Dead Redemption 2 invested around $200-$300 million in their marketing. This is more than 100% of their development budget. 

Social media marketing, content marketing, influencer marketing, and promoting your game at events require significant investment. It is best to hire a reliable team of talented marketers who understand how to market a game of your niche. 

Most Expensive Video Games Ever Developed

Here is a list of the most expensive video games ever developed by publishers. These games were built on a massive video game development budget and are complex AAA games. 

Game	Development Budget (in $)
Star Citizen	$501 million
CyberPunk 2077	$331 million
Call of Duty: Modern Warfare 2	$316 million
Final Fantasy VII	$245 million
Halo 2	$230 million
Destiny	$160 million
Shadow of the Tomb Raider	$146 million
Dead Space 2	$145 million
Grand Theft Auto V	$126 million
Shenmue	$114 million

Final Words

Video game development is a dynamic and complex journey that blends creativity, technology, and strategy into a singular art form. Whether you are building a simple mobile game or aiming for a blockbuster AAA title, the cost to make a video game can vary dramatically based on your game’s scope, team structure, platform, and marketing needs. 

It is crucial to understand the various elements that contribute to your game budget, from employee salaries and game engines to genre-specific complexities and marketing strategies. This can help you make informed financial decisions and make your video game within the estimated budget. 

Whether you are a startup studio or a large publisher, careful planning, a clear vision, and the right talent can transform your idea into a game that the world will remember. 

Ready to Build Your Game? Let’s Talk Budget & Strategy.

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