While I agree that there is exaggeration involved with the rising costs of game development, it's undeniable that there are more people involved in their development. The necessary steps of middleware integration, outsourcing of labor intensive art task and the development of efficient in house tools are simply necessities built to counteract this rising cost. The cost issue is more than pure speculation - it will happen. How well the industry deals with it at large is really the question here.
Epic's cost rose by 50% in one generation with the integration of some the industry leading technology. Are their costs going to rise another 50% ? Perhaps if they take the steps to restrict the inflation to a similar figure. But at the same time, are the revenue streams increasing at a similar rate to the budget increases ?
And I'm not worried about powerhouses like EA or whatnot. They have the resources. They will figure it out. It's really the increasing death of the small developer that is the real problem. As rising costs force middleware and tool development to become a necessity, which companies are large enough to weather the R&D costs enough to make them a viable studio is a big issue.


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