How much has a AAA game cost over time?

The cost of a AAA game has undergone significant changes over the years, with prices increasing from $50 to $60 and eventually to $70 starting in 2020, largely due to high development costs and marketing expenses. The evolution of AAA game pricing is a complex phenomenon influenced by factors such as inflation, technological advancements, and consumer expectations, with some games now costing tens of millions of dollars to develop.

Introduction to AAA Game Pricing

Early Days of AAA Games

The pricing of AAA games has a fascinating history, with the first AAA game, Final Fantasy VII, released in 1997, costing an estimated $40-45 million to develop.

FAQs about AAA Game Costs

General Questions

1. How long have AAA games been $60?: The official start of the $60 norm began with the PS3/XBox360 rise, around 2006, during the generational switchover from PS2/Xbox/GameCube to PS3/Xbox 360/Wii.
2. Why are AAA games so expensive now?: AAA games are classified as technically complex and highly interactive products with top-quality graphics, video, and music, leading to high development costs and marketing expenses.
3. Are AAA games getting more expensive?: Yes, AAA titles are significant releases that typically require months or years of work to produce, and their costs continue to rise due to increasing development costs and marketing expenses.

Cost and Pricing

4. What is the average cost of a AAA game?: Generally, AAA games cost several million dollars to develop and can exceed tens of millions of dollars, with the budget beginning with pre-production costs, which can be hundreds of thousands of dollars.
5. Why are Triple A games $60 dollars?: The price of $60 for AAA games has its roots in history, with games being $50 since the 80’s, and if the price had kept up with inflation, they would be $120 at launch today.
6. Why are Triple A games $70 dollars?: The move to $70 is largely a move by platforms and publishers to capture more market value, as companies can charge $70 now because they know people will pay it.

Development and Funding

7. How are AAA games funded?: AAA games are funded by multi-billion dollar publishers like Activision and Square Enix, with some AAA franchises enjoying yearly releases, while others see more spaced-out releases.
8. How long does it take to make a AAA game?: Developing a AAA game can take anywhere from two to five years, depending on the complexity of the game, the size of the team, and the available resources.

Industry Trends and Consumer Behavior

9. Will Ubisoft say its big AAA games will now be priced at $70?: Yes, Ubisoft co-founder and CEO Yves Guillemot confirms that the Assassin’s Creed publisher will join the companies charging $70 for their next-gen games.
10. Are people buying $70 games?: While some gamers are willing to pay $70 for games, others may buy fewer games due to the increased price, as seen in Sony’s recent report of record high revenue but lower software sales.
11. Why are games so expensive now?: The cost of games is influenced by factors such as inflation, wage stagnation, technological advancements, and changing demographics, making it challenging to determine their value.

Game Quality and Addictiveness

12. Why are AAA games not good anymore?: Some AAA games can become a muddled mess with too many cooks, leading to identity crises and a lack of clear game loop, whereas indie games often have a more focused development process.
13. Are Triple A games good?: The term “Triple-A” or “AAA” refers to games with a large budget for production and marketing, expected to be of high quality and sell in substantial numbers, typically in the millions.
14. Why are video games so addictive?: The reward center in the brain releases dopamine in response to a pleasurable experience or hyperarousal, associating the activity with dopamine and driving the person to seek out that same pleasure again.

Miscellaneous

15. Where does most of the money go on a $60 dollar video game?: Retailers get to keep about 20% off the top of any game they sell, while platforms take around 30% of the remaining amount, leaving the publisher with a significant portion of the revenue.