In a recent interview with Brian Farrell, CEO of billion-dollar video game publisher THQ, he discusses budgeting for upcoming games, specifically with the Wii being considerably different from the high-definition efforts from Sony and Microsoft.
Q: What are team sizes and game budgets like?
A: We're over 100 on some of the teams. We have a very diverse portfolio. At the real high end, we have teams over 100 that are still doing a fair amount of outsourcing of no-critical tasks to Asia or Eastern Europe. On the younger-skewing titles that aren't as technically ambitious, the teams are still in the 30 or 60 range.Q: And the budgets?
A: It depends on the type of game. When you are aiming high, with a genre-defining game like Saint's Row, you can spend $15 million to $20 million at the high end. On the core wrestling games where we are expanding the graphics and modes, and we already have the core wrestling technology with our WWE franchise, you're on the lower end of that range. Now that we have technology up and running on all of the next-generation systems, to take some of our games like the Pixar stuff Cars or Ratatouille to next-generation, we can use existing technology. So it's nowhere near that range. It depends on where you are aiming and your market segmentation. Now that I've said that, that is a big theme of ours we are trying to communicate. We think this next-generation is all about segmenting the market. It's no longer about taking one game and putting it on all platforms. The guy doing Frontlines isn't going to put it on the Wii. It belongs on the Xbox 360, PS 3 and the PC. It's a high-end, core gamer multiplayer title. It doesn't belong on the Wii. There are some things I can't talk about on the Wii that we don't want to put on the PS 3 or Xbox 360.Q: Are the Wii titles coming out at half the cost?
A: Yes, and sometimes even less than that. Where costs are occurring in this generation are in asset and content creation. And since the Wii is not high-definition, and it can still look good. You have to remember a lot of game systems aren't yet hooked up to high-def TVs. Content creation is costing all the money. With the Wii, you can look great at a third of the cost sometimes. The business model on the Wii works.
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