It's well known that video game development is becoming increasingly expensive. We used to be shocked that a video game cost hundreds of millions of dollars, but it seems that's going to be the norm. God of War Ragnarok was released on November 9, 2022, and sold over 5,1 million copies in its first week alone. If, after taxes and retail commissions, it had received $40 per sale, it would have barely recouped the development costs.
Some fans have wondered how much this title cost to make. A report from The Guardian reveals that God of War Ragnarok cost approximately $200 million. That would place it among the most expensive games to produce, a list that also includes Cyberpunk 2077.
God of War: Ragnarok is one of the most expensive games to produce in history
This information comes from Shuhei Yoshida, who spoke about the video game industry. The interview also touched on God of War Ragnarok, and it was reported that the game's development cost $200 million.
This would make God of War Ragnarok cost almost five times more than God of War III , which was a truly expensive game in its time. The fivefold increase is a significant price hike, due to the need for more detailed graphics, larger worlds, and more renowned voice actors. And while it seems logical to spend that kind of money on a blockbuster, not every title is guaranteed absolute success, as Shuhei Yoshida also commented on.
“Getting funding for games is hard, but even when you make an amazing game, there are so many great games out there that no one knows about.”
Shuhei Yoshida
While the price is much higher, digital stores offer significantly greater profit margins. Furthermore, video games are sometimes the starting point for additional campaigns, such as official merchandise like Funko Pops , or events like soundtrack concerts. A prime example is Pokémon, which sells more in toy and card merchandise than in video games. The games introduce many new creatures, generating more plush toys and figures for children, and cards for collectors.
Source: Tech 4 Gamers
