Yes, video game budgets are skyrocketing, but the reason goes beyond graphics

Don't charge more, trim the unnecessary fat.

Look at what something like COD spends on advertising. You're already a massive franchise, being splattered over every billboard and busstop doesn't do much. Bet the majority of your target demographic doesn't even watch TV so why advertise there?
Someone mentioned sweet baby Inc before, imagine spending money on that. A consultancy firm that you have to pay to make your game actively worse by force inserting a narrative. Then it results in more work for the people actually doing useful work and they have to spend their time listening to some speech or sitting through some presentation. Colossal waste of resources.

Games used to made by a bunch of passionate neckbeards in a basement and it resulted in some real gems. Now you have a research team analysing what would be the most profitable, then you try to have it developed by a bunch of people without passion for the industry that live in expensive areas. Not to mention they're under far to many layers of management.

Just go back to passionate people doing games they want to make themselves. Baldurs Gate 3 has proved that can still be done very successfully. Don't all try to be the next Fortnite money printer, there is only room for a few of those.

Oh, and allow for remote work. It lets you recruit people that work for a lot less and you don't have to pay for the expensive office building. Good for diversity as well, you can recruit from anywhere there's passionate people that want to work on your game.

Like government these companies have become bloated pigs. Ever watch the end credits on a COD game or other big title game? There's like 10000 people and a hundred sub-studios listed.
 
Game development is getting lazier & lazier. Games release broken & many stay broken. No optimizations. To dependent on fake resolutions & fake frames. Hardware has become mediocre too. Graphics cards are being held back by upscalers and frame generation. Instead of producing more powerful/efficient cards they're focusing on BS upscalers and frame generators.
The problem is we're basically out of ways to make faster HW. We can't shrink much anymore, and the power/thermal requirements are already getting a bit insane. That's why there's been so much focus on other ways to improve image quality (first through new AA modes, now through upscalers), display tech (VRR/HDR), and other features (AI, etc) rather then pure performance.

Lets face it: We basically tapped out on major graphic enhancements in the 360/PS3 era, and have been chasing incremental improvements since.
 
Everything I said is accurate.

Games are cheaper than they have ever been, not more expensive.

Back in the day there were not millions of indie games under $30. Triple AAA games have remained the same price. They have not been impacted by inflation unlike everything else.

Saying games are getting more expensive is not baked in reality.
Yup, this is true. I mean, in the early 1980s, there were loads of games for like $20. But $20 in 1982 is $65 today. And that was for something like Asteroids or Pacman or Star Raiders. Or Zork for that matter. Of course the scale was way different (in terms of how many units you could realistically expect to sell.)

Honestly AAA games are a remarkable bargain.

As for the article itself... I agree about labor costs and all that, they aren't wrong. But a decent amount of those labor costs are from using extremely detailed graphics, using every trick in the book in game engines, sometimes switching to a newer engine mid-game-dev to get more "tricks in the book" to use, etc. So, you end up with individually rendered arm-hairs (instead of an arm texture with hair on it); raytraced lighting instead of some pre-computed shinies and reflections; whatever other tricks the newest game engine has to put in your game. Then they can find out the FPS drops off on the game systems they intended to ship to, so they have to spend more time and effort optimizing the game. Then perhaps again if they ever intend to run it on the Switch. Again for a PC port, where they miss out on sales if it's too heavy for the Steam Deck, and miss out on more sales from other PC players who may have wanted to play but find out they don't meet the system requirements. All for graphics that are maybe 5-10% better looking than if they just stuck to, say, PS4-level graphics or even high-end PS3, and focused on gameplay instead.
 
Just like the Real Estate Market, the Video Game
Industry is in a much need of a crash in order to find themselves as an affordable and less volatile industry again.

Would that mean thousands of game developers would have to lose their jobs? Yes, just as thousands of Real Estate agents would, but when we live in a world with massive overblown gaming budgets and salaries just as much as ridiculously overpriced housing there's only one thing to hope for....a massive crash in both industries to readjust everything.
Except this isn't a bubble, it's just that visuals are getting better and better, and it requires more and more resources.
 
Except this isn't a bubble, it's just that visuals are getting better and better, and it requires more and more resources.
You are wrong, totally, wrong....technology investment cost is relative to what's new at the moment as anyone would agree the cutting edge in game development back in the in the early 2000's were just as costly for gaming studios then as they are now for them with current technology....besides technology investments is a fraction of the cost compared to the overblown salaries for game developers and producers.
 
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