Roadbeer, on 26 March 2013 - 07:57 PM, said:
Office space, Internet access (not your standard DSL Rates) Server hardware, work stations, power bill, waste disposal, water, payroll, payroll taxes, employee health insurance, Does Canada have provincial taxes like we have state taxes?, Income taxes, ping pong table, coffee filters, asset insurance, legal services...
want to know more?
I bet with 50 employees, $5 million (adjusted to Canadian rates) is barely one year of operating costs.
As a support to your argument, I read this most interesting interview with Chris Roberts, the man who brought us Wing Commander and its ilk, as he works on a new game, Star Citizen. THis paragraph speaks of the costs of game development.
In case you wish to read the whole interview: http://www.gameinfor...ar-citizen.aspx
"One of the questions I see frequently posed by readers in relation to Kickstarter game pitches is the chasm between the experience the game promises versus the requested amount of funding. For instance, you have raised $7.5 million, and your Kickstarter page claims Star Citizen is going to be a high-end game. The typical budgets for games in that category are much larger. It's rumored that Grand Theft Auto V is going to cost Rockstar over $100 million. How is it a realistic expectation that you can match that level of production value with a fraction of the money?
Star Citizen is not being made with $100 million. It will be about $20 million. One of the big differences between Star Citizen and a lot of the other crowd-funded games is that we're really building something that is competing with triple-A publisher titles. I can build it cheaper than I could if I was in house at EA or Activision just because I have [less] overhead. I'm like the CEO and the project leader. I don't have all these other sales offices around the world. You know, that makes a big difference. When Digital Anvil was bought by Microsoft, as a developer you always sort of figured out what your per-person cost per year is. Back then in 2000 or 2001, it was $110,000 per year. That's not what everyone was getting - people were getting $60,000 or $70,000, but once you added in rent and all those kind of things, health benefits, it was that. The moment we were bought by Microsoft, everyone was $200,000 a year. It was the same people, and they didn't get pay raises, but you had to get your allocation of the overhead from corporate. So Freelancer overnight at that point basically doubled the budget."
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