Is it as simple as supply/demand? People love games and game-loving developers are willing to take lower compensation to be in the industry? As a former obsessed gamer, I remember in my 20s I almost would have been willing to work at iD Software without pay if they let me.
It is actually quite a common occurrence in the arts and other creative fields, where there is a level of idealization for the work in itself outside of the remuneration. Musicians, architects, illustrators, cinematographers are all dealing with the same thing the more the work resembles their ideal type of artistic work, the less to pay usually.
I would guess a big part of this is because the art _itself_ is a form of compensation: Artists have a passion for the end result in a way that organizations (e.g., corporations, collectives, movements, etc.) harness and take advantage of in lieu of financial compensation.
This is usually framed in terms of greedy corporations cynically exploiting young workers, but having interviewed for a Sony studio myself a few years ago (and ultimately going back to my native robotics field for almost exactly double the pay), I think there is something tangible about the compensation that is working on something normal people encounter, especially in the leisure spaces of their lives.
It may not pay the rent or put food on the table, but seeing your name in the credits of a movie your friends watched or a game they played is a perk that has real value. Writing a technical book rarely pays the bills either but it's the same story of getting to see your name on the shelf, and maaaybe it leads to getting on a conference panel or something at some point but really you're doing a lot of labour for far below minimum wage just to be able to say you did (as I did for Apress when I was 20 years old... and it landed me an internship at Google, so there you go).
To a lesser extent the same has been said about Apple's low pay relative to peer (far less profitable) companies -- the mere honor of working at Apple is an implied part of the compensation package.
I think it is mostly just margins. Sure there are lots of people willing to work for no very little money for game dev but I would say there are tons of people willing to work for very little money for FAANG companies because they want that on their resume.
In fact since we are on hackernews that is kind of thing people wanting to be entrepreneurs do. Work at recognizable big tech company for a few years. Leave to be a founder of a startup. Investors ... well that guy came from google they must know what they are doing etc (the irony is they probably have less of the skills to start a company going that path).
They want it on their resume primarily to make more money and have a better career in terms of getting hired, etc. Very different motivation. They'd only work at a FAANG for free long enough to get that bump. Game devs however would work for many years underpaid because they like what they're creating.
FAANG used to be the _dream_. Change the world. Work on groundbreaking tech. Solve harder problems than anywhere else. Get Paid incredibly well.
Then I guess a generation focused exclusively on that last part flooded the zone. I still believe that The Great Resignation of 2021 did more harm to our industry than COVID or any interest rate or VC changes.
It polluted the brains of most of the people in our industry from a missionary mindset to a mercenary, and it decimated big company's established cultural memory all to prop up a bunch of unicorns who will probably all slowly die over the next decade.
So now half of the people can't get a job, and the half that can are miserable. This was true BEFORE AI.
It's just a natural progression. When the company is a startup working on a new exciting tech it's chasing the dream and changing the world. When it's a behemoth employing 200k people, it's impossible for all of them to be chasing the dream. Probably like 90% of them would be doing extremely boring "keeping the lights on" tasks and ensuring this gargantuan machine does not go to pieces under it's own weight. It still can pay incredibly well, but it won't be exciting frontier work anymore. It just can't be, 200k people company can't move with the agility of 200 people company.
~~Perhaps now especially since these companies are predominately hiring oversees contractors but circa 2009-2015 when I was around entrepreneurs and startups this was discussed.~~
~~Ultimately the goal is the same: make more money. So I disagree the motivation is "very different" its just a lot harder now to do a startup.~~
You kept editing your comment so disregard the above. I misread it the first time and then it changed. I left my response thats makes no sense now.
Your new point is excellent btw. I should have considered that.
I also hope it doesn't sound like I don't care for these developers who are being taken advantage of. They should be compensated fairly for their work.
EDIT I should add why I think it is a great point especially since I make recruiting software. The greatest increases in salary for most people is done by switching companies or jobs. If you don't want to leave the company because you really like what you do it would skew it so that salaries are lower.
People haven’t responded to your very first point, and I want to really stress it because I don’t think most people really get it.
Margins.
Game development doesn’t pay more because game development companies can’t afford to pay more.
Sure, an individual game dev company may make a lot due to the hit driven nature of the field, but the totality of the market simply makes less money per developer than big tech does.
In order for that to change, the market has to increase in size by appealing to a more casual audience, or existing gamers have to pay more. Not something I think most gamers would like. And these are the people who the workforce of game developers form from.
> In order for that to change, the market has to increase in size by appealing to a more casual audience, or existing gamers have to pay more. Not something I think most gamers would like.
To really drive this point home, the gaming community recently lost their minds when it became clear that this generation of video games were going to retail for ~$90 per game. Never mind that even in the early 90’s an average game might retail for $40 and what we would call a AAA game could reach as high as $70. In 2025 gamers declared that $90 was highway robbery. But go look at the credits for an early 90s video game. That $40-90 per unit in the early 90s might need to cover the salaries of 23 people (the size of the credits list for Super Mario World on the SNES). Now $90 has to cover 435 people (the credit list for Super Mario Wonder on the switch). Sure we’re selling a lot more copies now, and (some of) the manufacturing costs are lower. But that’s a nearly 20x increase in personnel for a mere 2x increase in (non inflation adjusted) price.
It's also amortized over a much longer period of time too. Those 23 people would scratch build that $40 game in 2 years. These days it's more like 8 years, and you're rarely building from scratch.
> In order for that to change, the market has to increase in size by appealing to a more casual audience, or existing gamers have to pay more.
The fun part of all this is that when union demands start forcing the industry in the opposite direction - higher cost, higher prices, smaller market. In a sane world, we would connect this, but in this world, we will just blame management. The union will forever have an invincible PR shield no matter how crazy the demand.
While I fundamentally agree with the concern about unions raising costs in a market where most titles cannot absorb them, GTA/Rockstar definitely can. Especially since the union is fighting for basic quality of life like no crunch instead of (for now at least) increased pay. I am generally not prounion but crunch -- especially at studios that are guaranteed to be profitable (GTA) -- needs to be curbed.
In what world are unions never criticised? I'm in the UK and they are often reviled in the press and among people who don't work in a unionised sector. America has an even stronger tradition of anti-union feeling (maybe partly due to historic links between unions and organised crime but also because the US has often had a stronger collectivisation than most European countries - consider that the political centre in the US would be considered into right wing in most Western countries on most issues)
See my further reply, margin of 20% give or take 10% depending on scale (on average, some products obviously have incredibly high or low margins as is typical in the creative industry).
My point about revenue was that games are pulling in more money than film and TV and we all know they cost less to make, and film and TV has good pay so therefore the games industry can afford similar rates, if not more.
My point was we know those are decent margin industries and video games aren't any more expensive, but anyway you usually look at 20% margin in the industry give or take 10% depending on the scale and particularly advertising costs at large scales.
Also games are for leisure. The same thing is true in Hollywood—hundreds of crew members getting paid small wages relative to their long hours and a few stars getting millions.
You have the causality inverted. People want big tech on their resume because it makes them look qualified. People with top qualifications work at big tech because of pay. If low quality engineers worked in big tech, it wouldn't be a coveted qualification.
The causality of what? I'm probably missing something obvious here. The cause of people getting paid less in game development I said has to do with margins (although I now think there is more to it than that).
> People want big tech on their resume because it makes them look qualified.
I think I said that?
> People with top qualifications work at big tech because of pay.
Actually I am not sure if that is true. I think top qualification people work at these places because of other reasons than just money. I'm talking Carmack working at Facebook for example is because of more possibilities and less the pay. Like FB is we have this really smart team for you and this tech for you and you can make your own products etc.
After all there is academia and that mostly pays shit and plenty of qualified people there.
> If low quality engineers worked in big tech, it wouldn't be a coveted qualification.
And I think that is probably happening more now. The 10x developer was kind of a myth. More people for less money these days particularly with AI is becoming more of the norm.
Carmack level folks are the exception. the vast majority of faang interest is money. In fact if youve been in dev long enough, youd see even the makeup of the tyipical eng has changed, there are quite a few normies in the field these days, many of whom im not sure even like coding at all. Its seen as a reliably high paying field worth steering towards regardless of interest. It has lately reminded me of the kinds of people id see in medicine. smart, capable, not particularly interested in the field as such.
All else being equal, the cooler a job is, the less it will pay. It's why unions have been so successful in other "cool jobs" like professional athlete and working on movies and TV. There are some people who would do those jobs for free which completely destroys the market power of most individuals requiring collective action to prevent exploitation.
It would be prudent if you would dig a bit deeper into how unions came to be. Long story short, capitalism can easily create situations where you agree to be exploited to some degree, to avoid being exploited to another, worse, degree.
"Agrees" is doing a lot of work in that sentence. Agreeing to $100/hour because you think it's fair and agreeing to $1/hour because you're starving may both qualify, but they're quite different.
as a student back in 2012, the CS program i was in was mostly people who wanted to make games. that's just one person's POV but most people i knew at the time weren't really into anything else in software.
I think this is part of it. I have heard some people turn to prostitution to afford working for the mickey mouse company in Tokyo. Second hand accounts. People go to insane lengths just to work at their dream place.
