In a rare glimpse behind the curtain of AAA game development, a court filing has revealed Activision’s eye-watering development budgets for three Call of Duty titles. First reported by Stephen Totilo on his Substack GameFile.news, the disclosed figures are among the largest ever seen in the gaming industry, cementing Call of Duty as not only a perennial blockbuster but also a colossal financial undertaking.
The Big Numbers: Development Costs Across the Franchise
The court filing, submitted in December 2024 as part of Activision’s legal defense in a lawsuit related to the Uvalde school shooting, details the development costs of three Call of Duty games released between 2015 and 2020:
- Black Ops III (2015): Developed by Treyarch, the game cost over $450 million across its lifecycle, selling an impressive 43 million copies.
- Modern Warfare (2019): A reboot by Infinity Ward, this title carried a staggering $640 million price tag, with 41 million units sold.
- Black Ops Cold War (2020): Co-developed by Treyarch and Raven Software, the game reached new heights with development costs exceeding $700 million but managed comparatively fewer sales at 30 million copies.
These budgets dwarf the $220 million reportedly spent on Sony’s The Last of Us Part II—itself considered a major production milestone when the figure leaked in 2023.
Lifecycle Costs or Hollywood Accounting?
One key detail in Patrick Kelly’s testimony, Activision’s head of creative for Call of Duty, is the inclusion of “lifecycle” costs. This means the reported budgets cover not just the base development but also ongoing expenses like patches, live-service content, server maintenance, and possibly even marketing. However, skeptics argue that these totals may be inflated by Hollywood-style accounting, where seemingly unrelated costs are lumped into development to claim larger investments.
Massive Budgets, Bigger Returns
Despite the astronomical budgets, Call of Duty remains a juggernaut of profitability. Even with $700 million in development costs, Black Ops Cold War grossed an estimated $1.8 billion in sales from its 30 million copies alone (assuming a $60 retail price before discounts and retailer cuts). This does not account for revenue generated from microtransactions, battle passes, or premium editions, which significantly bolster the franchise’s bottom line.
Redditors in gaming communities were quick to break down these numbers. One user noted that Modern Warfare (2019) essentially doubled its development investment within three years, boasting a return on investment well over 20%. Another pointed out that microtransactions and in-game cosmetics are where Activision likely sees the most substantial profits.
A Changing Industry Landscape
The disclosed budgets also highlight the ever-evolving nature of AAA game development. Salaries for thousands of developers, cutting-edge technology, and the increasing scale of live-service content contribute to the ballooning costs. Comparisons with titles like The Witcher 3 ($81 million), Baldur’s Gate 3 ($100 million), and even GTA V ($265 million) underline how Call of Duty operates in a league of its own.
Critics argue these massive expenditures are symptomatic of a bloated industry more focused on monetization than creativity. Others point to the immense pressure placed on developers, with “crunch” culture and frequent layoffs tarnishing the industry’s glossy exterior. One Reddit commenter, identifying as a former game developer, lamented the disparity between these headline-grabbing budgets and the “peanuts” paid to employees.
What’s Next for AAA Budgets?
As gaming continues to grow as a medium, surpassing movies and music in revenue, the $1 billion game budget may not be far off. Rockstar’s upcoming GTA VI, for example, is rumored to have a production and marketing cost approaching $1.5 billion. For comparison, Sony’s Spider-Man 2 reportedly cost $300 million—a fraction of Call of Duty’s highest budgets.
Final Thoughts
Activision’s budget disclosures underscore the immense scale of modern AAA gaming. While Call of Duty remains a financial behemoth, the numbers raise questions about sustainability, creative risks, and the human cost behind the pixels.
Based on original reporting by Stephen Totilo for Game File. Read the original reporting here.
