Andy Gavin Reflects on Naughty Dog’s Early Days
Andy Gavin, who co-founded Naughty Dog with Jason Rubin in 1986, has been actively sharing memories about the company’s beginnings on LinkedIn. Recently, Gavin discussed the studio’s financial journey, shedding light on the escalating costs of game development that ultimately led to Naughty Dog’s acquisition by Sony in 2000.
Early Budgets and Evolving Costs
According to Gavin, the costs of Naughty Dog’s games rose significantly over the years. He mentioned that games in the early 80s were created with budgets below $50,000 each. However, by the time “Crash Bandicoot” was developed (‘94-96), the cost had surged to $1.6 million. The budget for “Jak and Daxter” (‘99-01) exceeded $15 million, and by 2004, AAA titles like “Jak 3” were costing $45-50 million to produce.
The Sony Acquisition
The mounting financial pressure eventually led to Naughty Dog’s acquisition by Sony. Gavin emphasized that selling to Sony wasn’t just about securing financial stability but also about providing the studio with the necessary resources to continue creating high-quality games without being hindered by soaring expenses.
Industry Response
Gavin’s post sparked discussions among industry professionals, with James Marcus, a senior artist at 1047 Games, expressing concerns about the rising development costs. Marcus highlighted how escalating budgets have forced many developers to take fewer creative risks or resort to selling their studios to larger corporations to avoid financial ruin.
The Realities of Studio Acquisitions
While being acquired by major companies like Sony can provide financial security, it also comes with potential downsides such as restructurings and layoffs. Firewalk Studios, for instance, faced challenges after being acquired by Sony in 2023, as the studio behind “Concord” was shut down shortly after the game’s launch. This mixed outcome underscores the complexities and uncertainties involved in studio acquisitions.