Naughty Dog and Sony: the sale that secured The Last of Us and more

Founded in 1984, Naughty Dog is now one of the most respected studios in the market. Since 2001, it has been part of Sony Interactive Entertainment, a strategic decision that ensured its stability in an industry where budgets skyrocket with each generation.

According to Andrew Gavin, co-founder of Naughty Dog, the sale was motivated by increasingly alarming numbers. He revealed that initially, the studio financed its own projects. Games like Rings of Power ('88-'91) cost a modest US$ 100,000, but profits no longer matched the increasing costs. In 1996, Crash Bandicoot raised the budget to US$ 1.6 million, while Jak and Daxter ('99-'01) exceeded US$ 15 million. By 2004, Jak 3 cost between US$ 45 and 50 million to produce.

Gavin detailed the scenario in his statement:

"Why did we sell Naughty Dog? Budgets were skyrocketing. When we started in the 80s, it cost less than US$ 50,000 to develop our games. However, in the 2000s, we were still funding each project, and the stress of keeping up with the increasing costs was unbearable."

He highlighted the impact of this choice:

"Selling to Sony was not just ensuring a financial future, but also giving the studio the creative freedom to continue producing games like The Last of Us, without the risk of a single mistake destroying us. It was the right decision."

Today, the development of AAA games can reach impressive figures, exceeding US$ 300 million. Recently, Naughty Dog revealed its new IP, Intergalactic: The Heretic Prophet, in production since 2020. Although few details have been disclosed, the project promises to uphold the legacy of the studio's great productions.