![How to plan and track the budget of your videogame [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2_afb8e466-ac9f-4771-9266-51c69c2168f7.png?v=1715856460&width=1100)
If you don’t plan and track your game development budget properly, you're setting yourself up for failure.
When we developed our strategy pack for indie game developers, we saw a lot of developers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having promising game concepts.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your game development finances around and set you on the path to success!
Get the budget tracker tailored for videogames
Most video game developers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for videogames
Here is an example of a (very) detailed budget for a video game development studio, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Rent | Lease for office space | $4,000 | $48,000 |
| Electricity | Power consumption for computers and equipment | $600 | $7,200 |
| Internet & Phone | High-speed internet and business phone | $200 | $2,400 |
| Water | Water usage | $100 | $1,200 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Lead Developer | 1 | $6,000 | $6,000 | $72,000 |
| Game Designers | 2 | $4,000 | $8,000 | $96,000 |
| Programmers | 3 | $3,500 | $10,500 | $126,000 |
| Artists | 2 | $3,000 | $6,000 | $72,000 |
| Sound Designers | 1 | $3,000 | $3,000 | $36,000 |
| QA Testers | 2 | $2,500 | $5,000 | $60,000 |
| Project Manager | 1 | $4,500 | $4,500 | $54,000 |
3. Software & Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Game Engine Licenses | Licenses for Unity, Unreal Engine, etc. | $1,000 | $12,000 |
| Graphic Design Software | Adobe Creative Cloud, etc. | $500 | $6,000 |
| Sound Editing Software | Pro Tools, FL Studio, etc. | $300 | $3,600 |
| Project Management Tools | JIRA, Trello, etc. | $200 | $2,400 |
| Version Control Systems | GitHub, Bitbucket, etc. | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Influencer Partnerships | Collaborations with gaming influencers | $600 | $7,200 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Game launch events, conventions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of computers and hardware | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Licenses & Permits | Software licenses, business permits, etc. | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some videogames make 5x more profit than you!
We have studied the strategies of the best videogames in the world. Replicate them now!
What are the biggest expenses for a videogame?
Watch out for these pitfalls. Here are five major costs every game developer needs to consider, along with some tips on how to manage them effectively.
- Development and software costsThese can consume a significant portion of your budget. You're dealing with software licenses, development tools, and possibly outsourcing. Prices can vary based on the complexity of your game and the tools you need. To keep these costs in check, focus on using open-source software where possible, negotiate better rates with vendors, and avoid feature creep. It's easy to overspend by opting for high-end tools that don’t add enough value.
- Your development teamYour team is your backbone, but paying for their salaries, benefits, and training can be expensive. This cost is always high because you need a skilled team to create a quality game. You can optimize labor costs by scheduling efficiently, cross-training team members, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor-quality work.
- Office space and utilitiesPrime office locations come with high rent, but they can attract top talent. Utilities like electricity, internet, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient equipment. Overspending often happens when you choose an office that's too big or too fancy for your needs.
- MarketingYou need to get the word out about your game, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Hardware and maintenance costsThis includes everything from development hardware to testing devices. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and game performance. Optimize by investing in durable, energy-efficient hardware and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your videogame?
Here are practical tips to help you, as a game developer, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Software Licenses | Utilize open-source software and tools to reduce licensing costs. |
| Development Team | Implement agile project management to optimize team productivity and reduce overtime. |
| Hardware | Invest in high-quality, energy-efficient hardware to reduce long-term costs. |
| Marketing | Run social media campaigns for your game and collaborate with gaming influencers for free exposure. |
| Server Costs | Optimize server usage and consider cloud solutions to scale efficiently. |
| QA Testing | Set up a regular testing schedule and use automated testing tools to catch bugs early. |
| Office Space | Negotiate lease terms during renewal or consider remote work to reduce office space needs. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Game Assets | Use cost-effective, royalty-free assets and consider outsourcing to reduce costs. |
| Networking | Attend industry events and conferences to build relationships and gain insights without high costs. |
| Payment Processing | Choose a payment processor with low transaction fees and integrates with your platform. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Data Management | Implement a data management system to track user data and optimize game performance. |
| Technology | Invest in multi-functional development tools and utilize game management software for project tracking. |
| Documentation | Use digital documentation tools to reduce printing costs and improve accessibility. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan travel routes to maximize efficiency and reduce fuel costs for in-person meetings. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital project management tools. |
| Inventory Management | Use inventory management software to track hardware and software assets. |
| Security | Schedule regular security audits and maintain high standards to prevent data breaches. |
| Music and Sound | Use royalty-free music and sound effects, and consider hiring freelance composers. |
| Uniforms | Choose durable, easy-to-clean uniforms for events and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best videogames in the world!
There are videogames that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a videogame
Yes, some expenses for your video game development are just unnecessary. They don't contribute to increasing revenue or improving player experience.
| Game Development Expense | Reason It's Useless |
|---|---|
| Overly Complex Graphics | High-end graphics can be a drain on resources and may not significantly enhance gameplay for most players. |
| Expensive Voice Actors | Unless you are creating a AAA title, mid-range voice talent can be just as effective. |
| Excessive Game Features | Adding too many features can complicate development and lead to a cluttered user experience. |
| High-End Development Tools | Top-of-the-line development tools are not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Paper ads and traditional media often have a lower return on investment. Focus on digital marketing instead. |
| Multiple Character Skins | Having too many character skins increases design costs without adding significant value to the player experience. |
| Overstaffing | Having more developers than needed leads to higher labor costs without necessarily improving the game quality. |
| Premium Software Subscriptions | Expensive software subscriptions often include features you don’t use, wasting resources. |
| Exclusive Soundtracks | Using rare or exclusive music can inflate costs and complicate licensing. |
| Costly Office Furniture | High-end office furniture is not always appreciated by the team and can be a significant expense. |
| Custom Printed Merchandise | Personalized merchandise is a minor detail that most players overlook, and it can be expensive. |
| Unnecessary Software Licenses | Paying for software with features you don’t use is a waste of resources. |
| Premium Hosting Services | Most players are content with reliable, mid-range hosting services, making expensive options unnecessary. |
| Extra Development Hardware | Maintaining more hardware than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Updates | Constantly updating the game can be costly and disrupt player experience. |
| Expensive In-Game Items | Elaborate in-game items are often ignored by players and add to the cost. |
| High-End Development Hardware | Luxury development hardware is prone to damage and expensive to replace, often going unnoticed by the team. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive UI Designs | Frequently redesigning the user interface is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Testing Equipment | Specialized testing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your videogame!
Managing a budget for a video game development project when funds are tight can feel like a nightmare. It's like being trapped in a level where any unexpected expense can lead to a game over.
This constant pressure makes it nearly impossible to invest in new features or expansions, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making progress. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your game.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of video game projects just like yours. Get them now!
Make your videogame more profitable
We have studied the strategies of the best videogames in the world. All their tactics are explained in our pack!
