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The high base level costs aren’t due purely to development, I’d wager. How many admin staff, redundant management, petty meetings, and exorbitant costs go to overhead that could be solved with a 20 minute meeting and less triple expressos for the executive team?
Moreover, chances are we could find several issues with the flow of work around the development of the game itself. Poorly optimized communication, for the win.
Not sure why heavily leaning to one side or another is so popular nowadays.
Anyway, I don’t know how individual companies do what. I don’t work for them. I don’t have insider knowledge. I do know how companies are typically structured and the traps nearly every company experiences as they grow, both in revenue and often consequently in manpower.
I’m not going to dive into it. This is a pretty easy topic to find on many search engines and Youtube where they’ll probably go more in-depth than I can with a limited attention span and two thumbs.