A multitude of myths have circulated around modern video game budgets for years, and the massive figures appearing in the media often fail to reflect reality at all.
Recently, the internet has been actively discussing reports that the development of Gears of War: E-Day cost a staggering $500 million. This sent shockwaves through the gaming industry and sparked rumors that employees at The Coalition are now fearing layoffs.
Renowned journalist Jason Schreier decided to look into the situation and explain the origin of this astronomical sum. In his new video, he confirmed that the figure mentioned in the documents is genuine. However, this by no means implies that all the money was spent solely on the campaign and the game engine.
According to the journalist, part of the funds could have gone toward technical support for other Microsoft teams, work on Unreal Engine, and the development of specialized tools.
Schreier also recalled the high cost of retaining employees in North America. A single specialist costs the company $15,000–30,000 per month, taking into account salary, insurance, equipment, and office rent. The longer development lasts, the higher the expenses. The situation is further complicated by Xbox's financial policies, annual budget approvals, and Game Pass. Therefore, comparing costs directly to copies sold makes no sense: such an assessment does not allow one to determine the project's true profit.