Halo 3 development and Microserfs

I gather Halo 3 just came out.

How much did it cost to develop?

A news story on the wire quotes a development cost of $30 million for Microsoft, with another $30 million or so in marketing and bonuses, for a launch cost of $60 million. Which implies very high profit margins for a successful game.

But, the story also claims it took 300 elite programmers three years to put the game together, which is plausible.

So, an elite programmer can be had to $33,000 gross per year?
I don't think so.

You might think that this is because most of the programming is done somewhere off-shore at very low cost, but the Washington development lab has 100 employees.
So even if the foreigners were free, that is still only $100,000 per person per year.
That is impossible: with payroll taxes, benefits and overhead it would imply elite programmer pay of only $50-60k per year, and I don't think you get that in the Seattle area.

Someone is off by a factor of 2-3 or more on the development cost, and the article writers and publishers should have realised something was smelly about this story.

Tags

More like this

On the shopping day known as “Black Friday,” activists held protests at Walmart stores across the country to protest the company’s low wages. In one of the eight press releases the company issued in the 24 hours between Thanksgiving Day and the close of the November 29 “Black Friday,” shopping day…
It was NASA proposal season last month, meant to comment on it, but was so exhausted and pissed off about the whole thing that I needed some space. A typical proposals is 15 pages of main text; including biblio, bios, associated documents and blurbs the final (electronic) package is typically 40-55…
The inescapable sports story of the week has been Alex Rodriguez's decision to opt out of his contract with the Yankees and pursue more money on the free-agent market. While it amuses me to see an off-season story about the Yankees eclipsing the Red Sox winning the World Series, I find this…
In an otherwise not-too-bad post about the value added tax (VAT), Edmund Andrews goes off the rails: I would submit that many middle-income people (including me) SHOULD pay more. The government needs to raise more revenue to provide the services that voters demand, and middle-class people…

A staff of 300 isn't something totally implausible for a large project like Halo. Most of those would be engine programmers, however. The bulk of them would be designers, concept artists, modelers, etc., who are typically paid less.

Sure, but gross costs for an employee are typically somewhere between double their take home pay and $50k on top of their take home pay.
Numbers just don't add up, even if a fair fraction of the staff are doing medium pay grunt work rather than 3l33t programming.

Maybe if most of it was off-shore, but the Wired article claims 100 staff in the Washington studio, and that alone should be costing them over $10 million per year.

Most likely this is combining the total length of time with the total number of people, but grossly overestimating the number of person years. I've got no idea about this specific case, but it's the sort of thing that frequently happens: someone will issue an ambiguous press release that says "Our new flagship product took ten years to develop. One thousand software engineers worked on it." and this leads to a ten thousand person-year estimate in the media.

By Anonymous (not verified) on 25 Sep 2007 #permalink

I'm guessing it's 300 peak people. I'm also guessing they included QA staff (which tends to be large), localization (the people who do translation), and so on. Game development is big, but the people resouces often fluctuate greatly over the course of a game.