Call of Duty: Black Ops Cold War Cost $700 Million to Develop

In a rare disclosure, Activision has unveiled the staggering development costs for three of its flagship Call of Duty titles, shedding light on the substantial investments behind some of the industry’s most popular games.

These revelations, emerging from a recent court filing, offe a glimpse at the ever-growing financial demands of producing AAA video games.

• Call of Duty: Black Ops III (2015): Developed by Treyarch over three years with a team of hundreds, this title incurred development costs exceeding $450 million throughout its lifecycle. The game achieved significant commercial success, selling 43 million copies.
• Call of Duty: Modern Warfare (2019): Infinity Ward led the development over several years, with expenditures surpassing $640 million. This installment sold 41 million copies, reflecting its strong market performance.
• Call of Duty: Black Ops Cold War (2020): A collaborative effort between Treyarch and Raven Software, this game required years of development by a large creative team, culminating in costs exceeding $700 million. It sold 30 million copies, marking it as one of the most expensive games ever produced.

The figures, disclosed by Patrick Kelly, Activision’s head of creative for the Call of Duty franchise, are among the highest development costs ever reported in the gaming industry. For context, Sony’s 2020 title, The Last of Us Part II, had a development budget of approximately $220 million.

These high financial investments are, however, often recouped through strong sales figures, as evidenced by the combined sales of over 114 million copies for the three titles mentioned.

It’s important to note that these development costs, driven by factors such as advanced graphics, expansive content, and high player expectations, do not typically include marketing and promotional expenses, which can also be substantial.

Despite the high costs, the Call of Duty franchise continues to be a significant revenue generator for Activision. In 2021, the company reported net revenues of $8.8 billion, with a major portion attributed to the success of its flagship series.