The Soaring Costs of Developing AAA Games

Testimony in the regulatory fight over Microsoft’s acquisition of Activision Blizzard shows that game publishers are spending more than ever to make new entries in their biggest franchises, with some AAA franchises like Call of Duty having development budgets already exceeding $300 million, and the next Grand Theft Auto and other future tent-poles are also expected to hit $250 million or higher. This unsustainable trend has publishers continuing to retreat into their most trusted franchises, and it's unlikely another company could reasonably make a replacement for Call of Duty anytime soon.