{"id":485,"date":"2016-06-08T19:34:11","date_gmt":"2016-06-08T23:34:11","guid":{"rendered":"http:\/\/betterrealities.com\/?p=485"},"modified":"2016-06-09T15:03:31","modified_gmt":"2016-06-09T19:03:31","slug":"what-does-1mm-buy-in-game-development","status":"publish","type":"post","link":"http:\/\/betterrealities.com\/?p=485","title":{"rendered":"What Does $1MM Buy in Game Development?"},"content":{"rendered":"<p>A million dollars seems like a lot of money, but what does it really buy? \u00a0To explain the answer, I&#8217;m going to use a widely reviled concept: the man-month. \u00a0I should also clarify upfront that I&#8217;m talking largely about commercial game development; indies do more with less through a variety of approaches, but for most consumers, their points of reference are mainstream commercial games. \u00a0So, if you&#8217;ve ever wondered what it costs to build that kind of a game, here are some outlines.<\/p>\n<p>The man-month concept gets a lot of grief; it&#8217;s called mythical, sexist, outdated; game developers throw shade at it all the time. \u00a0From a project management perspective, this is thoroughly\u00a0justified. \u00a0Everyone knows that nine women can&#8217;t incubate a baby in one month, and using man-months to try and figure out the scope of an in-progress or near-future feature is like using a chisel to brush your teeth. \u00a0But, at the project planning stage, man-months can be a useful estimating tool, as long as you understand that they cannot account for critical path issues, do not reference actual men, and have low precision.<\/p>\n<p>At the 10,000 foot view, when trying to establish the starting parameters for things like scope, budget, and schedule, the man-month is a valuable concept. \u00a0At a base level, a man-month is the rough amount of work that a team member can get done in a month. \u00a0Far more interesting is looking at the man-month cost of a project, though. \u00a0Let&#8217;s say, for example, that a project is going to take 5 people 10 months. \u00a0You can call that 50 man-months, and if you have an average man-month cost for your team (or studio), you can take that product, add some pad for additional overhead, and have a rough cost for the project.<\/p>\n<p>What is an average man-month cost? \u00a0This is all over the map, depending on what kind of environment and team you are looking at. \u00a0The biggest part of this is always salary. \u00a0Let&#8217;s say you&#8217;re paying someone $84K a year; on a monthly basis, you&#8217;re paying $7K in salary. \u00a0However, salary generally only accounts for about 70% of an employee&#8217;s cost. \u00a0In addition to salary, you have benefits (insurance, vacation, etc.), rent (if you have a physical office), hardware (if you provide it), software licenses, etc. \u00a0So, that person making $84K a year is actually costing you about $10K per man-month. \u00a0That&#8217;s pretty good in today&#8217;s market for an A-level studio. \u00a0Indies are obviously cheaper; top-notch outfits go higher ($15-20K per man-month).<\/p>\n<p>$84K a year is good money, above the established mark for where income makes a noticeable difference in quality of life. \u00a0Most people would be happy to make that kind of money. \u00a0The kicker is that on larger teams\/projects, that&#8217;s the average salary. \u00a0So, let&#8217;s say you need a Tech Director for your project, and let&#8217;s say you manage to score one at the relatively bargain-basement price of $140K\/year. \u00a0That additional $56K has to come from somewhere; if you take it all at once, someone else needs to be making $28K\/year (under the poverty line), or you can spread that out across multiple people, but even spread across 4 other people, each of them has to take a $14K\/year hit. \u00a0That&#8217;s for one hire. \u00a0For everyone you hire at a salary above average, you have to pull that money out somewhere else. \u00a0If programmers are pulling above $84K\/year (and they generally are), your designers and artists are going to have to come in lower. \u00a0For every senior person, you&#8217;re going to need some juniors.<\/p>\n<p>So, getting back to the question at hand, if you&#8217;re spending about $10K a man-month, and you have $1MM dollars to work with, you can afford about 100 man-months. \u00a0You can slice that various ways, 10 people for 10 months or 5 people for 20, but let&#8217;s set a timeline of a year; at 12 months, you can afford to hire 8 people (yourself included if you&#8217;re part of the project budget). \u00a0Let&#8217;s say off-hand that you need to have a lead for each of the major disciplines &#8211; tech, design, art, and production. \u00a0That leaves 4 additional hires. \u00a0Let&#8217;s say you want a full-time concept artist, modeler, and animator; that leaves you with one slot, probably a programmer. \u00a0Keep in mind that all of those people are going to need to be junior because your leads are going to need to be senior, and the man-month cost has to balance out. \u00a0Oh, and did you account for QA? \u00a0What about audio? Level design? Finance\/accounting? Facilities management?<\/p>\n<p>There are lots of ways to skin this cat; some projects don&#8217;t need a lot of art and\/or can get more volume at less cost by outsourcing. \u00a0On a lot of teams this small, people wear multiple hats, because they have to. \u00a0Distributed teams are becoming more common and can avoid a lot of overhead costs, like facilities. \u00a0But, the bottom line is that for $1MM, you can get a small, 8-person development team that&#8217;s about half experienced people for about a year. \u00a0For contrast, most AAA PC and Console products take 50+ people to make; market leaders are almost all over 100 people, and MMO&#8217;s and other massive franchises can get to 200+ and multiple sites of development. \u00a0Even AAA mobile teams these days are commonly 20+. \u00a0Time to market is generally at least a year, even on small mobile projects\u00a0(250+ man-months), \u00a0AAA is generally 2-3 years (1200+ man-months), and MMO&#8217;s run 5-8 years (4000+ man-months). \u00a0Remember, $1MM only buys you 100 man-months.<\/p>\n<p>Or in other words, &#8220;not much&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A million dollars seems like a lot of money, but what does it really buy? \u00a0To explain the answer, I&#8217;m going to use a widely reviled concept: the man-month. \u00a0I should also clarify upfront that I&#8217;m talking largely about commercial game development; indies do more with less through a variety of approaches, but for most &hellip; <a href=\"http:\/\/betterrealities.com\/?p=485\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">What Does $1MM Buy in Game Development?<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,2],"tags":[],"_links":{"self":[{"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/posts\/485"}],"collection":[{"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/betterrealities.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=485"}],"version-history":[{"count":4,"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/posts\/485\/revisions"}],"predecessor-version":[{"id":489,"href":"http:\/\/betterrealities.com\/index.php?rest_route=\/wp\/v2\/posts\/485\/revisions\/489"}],"wp:attachment":[{"href":"http:\/\/betterrealities.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/betterrealities.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=485"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/betterrealities.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}