When Andrew Gavin, co-founder of Naughty Dog, tackled the often-asked question about why the studio decided to partner with Sony, his response hinged on financial considerations. It all pointed back to the burgeoning costs and the studio’s monetary situation at that time.
As detailed on his LinkedIn page and shared by Tech4Gamers, Gavin reflected on the dramatic increase in game development budgets. Back in the 80s, creating a game would typically run costs to about $50,000. Fast forward to the development of high-profile titles like Jak and Daxter, and those figures had skyrocketed to a staggering $15 million. It became clear that financial stability was a chief concern, something that would understandably lead to such a significant decision.
Naughty Dog was perfectly capable of managing budgets in the thousands, or even hundreds of thousands, but when the price tags started reaching into the millions, it became unsustainable. In the early 2000s, recouping such massive expenses was a formidable challenge for the studio.
Though the exact numbers of the deal remain a mystery, Sony reportedly shelled out between $50 to $200 million in 2001 to bring Naughty Dog under its umbrella. Since then, the acquisition has proven to be a strategic coup, as Naughty Dog has grown into one of Sony’s most influential studios. They continue to build on successful franchises like The Last of Us, and fans are eagerly anticipating their upcoming title, Intergalactic, which marks their first new intellectual property since 2013.
