While the licenseing cost for UE3 is about 1 million, that does not factor in the cost of training employees to use it nor to develop new and specific tools for it. Those two things are very, very expensive in employee salaries when you've got 20 or 30 or more people needing to spend many months learning and developing new tools tailored to the game they are making. Everyone in EPIC is intimately familiar with the UE3.
That and many of GeoW 1's assets are reused. Creating new content from scratch is much more expensive than creative it with old assets. Thats probably one big reasons it only took 2 years to make.
Still, from Ubitsoft's perspective, its still closer to 60 million. As a publisher they have to worry about marketing/advertising (usually costs around the same as it takes to develop the game), customer service, manufacturing/packaging, and all the legal paperwork with lawyers and many other things like that. Epic only has to worry about making the game, nothing beyond that.
XaosII
You bring up a lot of valid points, but isnt that how it works in every industry? The parent company always has to take care of the operational costs. That's why each project/game is assigned a development budget. We aren't talking about how Ubisoft runs its coorporate offices, they have close to fifty games coming out every year, I'm sure they get royalties from each of the games they publish. We're talking about development budgets of a video game similar to a production budget of hollywood movie.
And I doubt the marketing budgets match the development budget. Assassin's Creed 1 cost over $20 million too make and had a marketing budget of over $1 million. AFAIR, it had tons and tons of tv spots and online advertising so $1 million seems to be the high end of what these marketing budgets usually are.
EDIT: Not everyone spends $40 million on marketing budgets like MS did with Halo 3. lol, they actually spent more on the marketing budget($40) than the production budget ($35 million.) I'll try to find more marketing budgets, if you have some, I'd be very interested to see them.
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