December 26, 2024 – Andrew Gavin, co-founder of Sony’s renowned first-party studio Naughty Dog, reflected on the studio’s journey in a LinkedIn post, highlighting the significance of the studio’s acquisition by Sony in 2001. According to Gavin, it was this acquisition that allowed Naughty Dog to thrive and continue producing innovative games despite escalating development costs.
Naughty Dog, with its illustrious history, has seen a slight dip in reputation due to a lack of recent updates on new projects. However, the studio is now attempting to regroup with the announcement of a new IP. Gavin emphasized that without Sony’s timely intervention, Naughty Dog might have ceased to exist.
Explaining the rationale behind selling Naughty Dog to Sony in the early 2000s, Gavin pointed out that game development budgets had escalated sharply, exceeding $10 million, a financial burden the studio could not bear alone.
In his post, Gavin traced the evolution of game development costs, noting that while creating a game cost just 50,000intheearly1980s,ithadsurgedtoover1 million during the “Crash Bandicoot” era (1994-1996). By the time of “Jak and Daxter,” these costs had skyrocketed to $15 million, posing significant financial challenges for the studio.
Gavin stressed that the decision to sell to Sony was not just about financial security but also about securing the necessary funds and resources to sustain innovative game development. “In retrospect, it was the right decision,” he wrote, adding that escalating costs are a widespread issue in the AAA gaming industry, affecting many companies over the past two decades.
Gavin attributed Naughty Dog’s success and longevity to Sony’s acquisition, the exact financial details of which remain undisclosed, although estimates range from 50to200 million in 2001.
