Naughty Dog Co-Founder Reflects on Sony Acquisition and Rising Game Development Costs

Andrew Gavin reveals that escalating budgets drove the studio to sell to Sony in 2001, ensuring financial stability and creative freedom.

Naughty Dog co-founder Andrew Gavin explained that the studio sold to Sony in 2001 due to the rapidly increasing costs of game development.
Game budgets rose dramatically, with early projects costing under $100,000, but later titles like Jak and Daxter exceeding $15 million and Jak 3 nearing $50 million.
Gavin stated that self-funding these projects created immense financial pressure and risk, prompting the decision to sell for long-term stability.
He noted that AAA game budgets have continued to grow, with some modern titles costing up to $500 million to develop.
Gavin believes the sale was the right decision, allowing Naughty Dog to thrive creatively and produce acclaimed franchises like Uncharted and The Last of Us.