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If you’re a gamer, there’s a high chance you’ve heard of Naughty Dog, the development studio behind some of the most iconic games in the industry’s history. Founded in 1984 by Andrew Gavin and Jason Rubin, the studio had achieved success with beloved franchises likeCrash BandicootandJak and Daxter.
In the early 2000s, the studio arrived at a crossroads. The escalating costs of developing a game in the 2000s were straining the studio’s resources. And so, Naughty Dog was sold to Sony in 2001. Gavin has recently shared some details regarding the situation back then and why selling the studio was the best option.
SellingNaughty Dogto Sony was the best move
When Naughty Dog started in the 1980s, the cost of creating a game was manageable. Their early projects were developed on budgets a fraction of those we see today, often under $50,000. Titles likeRings of Power(1988–1991) pushed the budget to $100,000 but were still self-funded by the studio.
Naughty Dog just isn’t the same without them.For the uncultured Zoomers who don’t recognize them: Jason Rubin, Andrew Gavin, Bruce Straley, & Amy Hennig.pic.twitter.com/XtoPLFchUV
But as technology advanced, so did the cost of production. By the mid-1990s, developingCrash Bandicootrequired $1.6 million, and the expenses ballooned to $15 million forJak and Daxterby 2001. By 2004, budgets for AAA games likeJak 3soared to $45–50 million.
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In a recentLinkedInpost, Gavin talked about how modern blockbuster games can demand$300–500 million in developmentand marketing. It’s a big sum for independent developers. “Developers almost never have the resources to fund their own games,” Gavin explains while highlighting how this financial gap gives publishers power over the developers.
Selling to Sony wasn’t just about securing a financial future for Naughty Dog. It was about giving the studio the resources to keep making the best games possible, without being crushed by the weight of skyrocketing costs.
For Gavin and Rubin, selling to Sony was a calculated decision. While financial security was a key factor, the partnership also provided the resources and stability needed to sustain the studio’s creative ambitions.
The studio is now known as one of the best to ever exist
Since its acquisition, Naughty Dog has become synonymous with high-quality, narrative-driven games. The studio’s evolution into a storytelling powerhouse was marked by its work onUnchartedandThe Last of Us, franchises thatdefined the PlayStation 3 and 4 eras.
Shuhei Yoshida shed some light on how things change for game development, stating that games like God of War III used to cost $44m to make, which was considered a high budget at its time🚀Nowadays, games like God of War Ragnarök cost $200m😱🔥How do you feel the impact of…pic.twitter.com/HdaoHCTmAJ
Looking back, Gavin has no regrets about selling Naughty Dog to Sony. “Would we have been able to keep up? Maybe,” he wrote. “But selling to the right party gave Naughty Dog the stability it needed to thrive.” Indeed, the studio’s achievements speak for themselves, fromUncharted 4toThe Last of Us Part1and2.
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Today, production and marketing budgets for major titles are in the hundreds of millions. This high-stakes environment means that even a single underperforming title can spell disaster for an independent studio. Sony’s financial support has allowed Naughty Dog to create blockbuster hits and experiment with ambitious projects that might never have seen the light of day otherwise.
Looking forward, Naughty Dog has its eye set onIntergalactic: The Heretic Prophet, a bold new IP led by Neil Druckmann. Say what you will about the trailer and the main character, but the mere fact that this studio is cooking has gotten fans hyped.
What have your thought of Naughty Dog as a gamer? Let us know in the comments!
Daniel Royte
Gaming Writer
Articles Published :1370
As part of the FandomWire team, Daniel has followed the hero-shooter genre closely with a focus on titles like VALORANT, Apex Legends, and Marvel Rivals. You can also find him providing insight on the latest AAA titles from Elden Ring to GTA 6 and exploring the world of gacha games like Genshin Impact and Wuthering Waves. With more than 1,000 articles under his belt, you’ll need to look no further for a unique insight into every situation.If he’s not looking for the latest video game news, you’ll find him cheering on Ferrari in the race tracks of Formula 1 or at the theatres for the latest MCU releases.
