{"id":1077532,"date":"2026-01-23T02:46:02","date_gmt":"2026-01-23T02:46:02","guid":{"rendered":"https:\/\/www.polygon.com\/?p=502300"},"modified":"2026-01-23T02:46:02","modified_gmt":"2026-01-23T02:46:02","slug":"naughty-dog-co-founder-says-ballooning-budgets-drove-it-to-a-sony-acquisition","status":"publish","type":"post","link":"https:\/\/arcader.org\/news\/naughty-dog-co-founder-says-ballooning-budgets-drove-it-to-a-sony-acquisition\/","title":{"rendered":"Naughty Dog co-founder says \u2018ballooning budgets\u2019 drove it to a Sony acquisition"},"content":{"rendered":"<figure> <img decoding=\"async\" alt=\"Jak and Daxter posing together in front of a tree at night\" data-caption=\"\" data-portal-copyright=\"Image: Naughty Dog\/Sony Computer Entertainment\" data-has-syndication-rights=\"1\" src=\"https:\/\/arcader.org\/wp-content\/uploads\/2024\/12\/naughty-dog-co-founder-says-ballooning-budgets-drove-it-to-a-sony-acquisition.png\" \/><figcaption><\/figcaption><\/figure>\n<p class=\"has-text-align-none\">Andy Gavin, who co-founded Naughty Dog with Jason Rubin in 1986, is a surprisingly prolific LinkedIn poster who has recently been sharing some memories about the company\u2019s early days. This week, he posted about <a href=\"https:\/\/www.linkedin.com\/posts\/andrew-gavin-441765_why-did-we-sell-naughty-dog-its-a-question-activity-7277011334121058305-JZKz\/\">the state of the studio\u2019s finances over the years<\/a>, describing how much it cost to make some of Naughty Dog\u2019s early games and how those ever-increasing figures led the studio heads to agree to a Sony acquisition in 2000.<\/p>\n<p class=\"has-text-align-none\">\u201cOur early 80s games cost less than $50,000 each to make,\u201d Gavin wrote. \u201c<em>Rings of Power<\/em> (&#8217;88-91), saw budgets rise to about $100,000, but yielded slightly more than that in after tax profits in 1992. In 1993, we rolled that $100k from <em>Rings<\/em> into a self funded <em>Way of the Warrior<\/em>. But <em>Crash Bandicoot<\/em> (&#8217;94-96) cost $1.6 million to make. By the time we got to <em>Jak and Daxter<\/em> (&#8217;99-01), the budget busted the $15 million mark. By 2004, the cost of AAA games like <em>Jak 3<\/em> had soared to $45-50 million \u2014 and they have been rising ever since.\u201d<\/p>\n<p class=\"has-text-align-none\">All of that led up to the Sony acquisition. As Gavin put it, \u201cthe stress of financing these ballooning budgets independently was enormous. [\u2026] Selling to Sony wasn\u2019t just about securing a financial future for Naughty Dog. It was about giving the studio the resources to keep making the best games possible, without being crushed by the weight of skyrocketing costs and the paralyzing fear that one slip would ruin it all.\u201d<\/p>\n<p class=\"has-text-align-none\">Gavin\u2019s post has sparked some debate in the comments, including from others who work in the games industry. James Marcus, a senior artist working on <em><a href=\"https:\/\/www.polygon.com\/23339731\/splitgate-1047-games-developer-announcement-shooter\">Splitgate 2<\/a><\/em> for 1047 Games, responded: \u201cIt is sad that the cost have risen so much. This has created a space where far too many developers take less creative risks or sell to large corporations to avoid bankrupting after a possible failed product.\u201d<\/p>\n<p class=\"has-text-align-none\">There are, of course, potential downsides for studios getting acquired by big companies like Sony. Namely, <a href=\"https:\/\/www.polygon.com\/24084509\/playstation-layoff-900-workers-feb-2024\">restructuring and layoffs<\/a> (Naughty Dog was also impacted by Sony\u2019s 2024 round of cuts). For Firewalk Studios, the studio that made <em>Concord<\/em>, getting acquired by Sony in 2023 didn\u2019t seem to do much to help the game or studio\u2019s future at all. After all, <a href=\"https:\/\/www.polygon.com\/gaming\/450065\/concord-canceled-firewalk-studios-closed-sony\">said studio was unceremoniously shut down<\/a> shortly after <em>Concord<\/em> launched. So, bit of a mixed bag when it comes to getting acquired by Sony. The <a href=\"https:\/\/www.polygon.com\/24086441\/final-fantasy-7-rebirth-sony-layoffs-death-of-aaa\">ballooning costs of AAA video games<\/a>, however, are an undeniable reality.<\/p>\n<p><a href=\"https:\/\/www.polygon.com\/gaming\/502300\/naughty-dog-sony-acquisition-video-game-budgets\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Andy Gavin, who co-founded Naughty Dog with Jason Rubin in 1986, is a surprisingly prolific LinkedIn poster who has recently been sharing some memories about the company\u2019s early days. This week, he posted about the state of the studio\u2019s finances over the years, describing how much it cost to make some of Naughty Dog\u2019s early games and how those ever-increasing figures led the studio heads to agree to a Sony acquisition in 2000. \u201cOur early 80s games cost less than $50,000 each to make,\u201d Gavin wrote. \u201cRings of Power (&#8217;88-91), saw budgets rise to about $100,000, but yielded slightly more than that in after tax profits in 1992. In 1993, we rolled that $100k from Rings into a self funded Way of the Warrior. But&hellip;<\/p>\n<p class=\"excerpt-more\"><a class=\"blog-excerpt button\" href=\"https:\/\/arcader.org\/news\/naughty-dog-co-founder-says-ballooning-budgets-drove-it-to-a-sony-acquisition\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":1077533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1077532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-polygon"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Naughty Dog co-founder says \u2018ballooning budgets\u2019 drove it to a Sony acquisition | Arcader News<\/title>\n<meta name=\"description\" content=\"Andy Gavin, who co-founded Naughty Dog with Jason Rubin in 1986, is a surprisingly prolific LinkedIn poster who has recently been sharing some 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