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)
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.
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.
Hmm compared to film/entertainment yes, but from the perspective of an individual developer worker, your alternatives are not just in film/entertainment
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.
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.