Wardn, on 13 November 2012 - 12:14 PM, said:
Lets count some numbers:
Let's assume they have 20 devs working on the game which would be a quite small team for such a product.
Including office space, hardware, software licenses, free coffee and such each of them will cost between 40-150K/year, depending on position. So if we assume an average cost of only 60k/year per dev (which would be really low for canadian standards afaik), we have 1.2 million on personal cost for a really cheap and small team.
You can easily double that number if you increase salary and team size to a more realistic level.
So at least 1.2-2.4 millions are gone each year just for the devs. Now take the probably high cost for a mechwarrior license into account, licensing of engines like the cryengine 3, plus marketing, server costs, and many other operational costs i probably forgot to mention. When they are lucky, the 5 millions will last for two years, but no longer.
And now assume they would double up the team number to speed up development. The money would melt away faster than you can say 'doh'. 5 million is nothing in serious game development, GTA IV for example had a development cost of 100 million $...