Andrew Gavin, the co-founder of Naughty Dog, recently shared his thoughts on why the studio decided to sell to PlayStation back in 2000. In a LinkedIn post, Gavin reflected on the early days of game development when costs were manageable. However, as the studio grew with titles like Crash Bandicoot, the budget started to soar. By the mid-90s, the costs were becoming unmanageable, and they knew they couldn’t go it alone anymore.
According to Gavin, this wasn’t just their problem—it was a widespread issue in the AAA game industry. Developers often don’t have the resources to fund massive projects, putting them at the mercy of publishers. Faced with the financial strain, Gavin and Jason Rubin decided that partnering with PlayStation was the best move to secure the studio’s future and continue creating top-notch games without the constant pressure of runaway costs.
Today, Naughty Dog remains one of PlayStation’s crown jewels, responsible for hits like The Last of Us and Uncharted. However, the problem of skyrocketing budgets is still a challenge in the industry, with some games reaching $200 million or more. It’s a tough game for independent studios to play without major backing.
What do you think about the financial pressures behind AAA games? Do you think Naughty Dog made the right call partnering with PlayStation?