So I was reading this morning about one of the reasons Pandemic was closed was due to SoCal's cost of living/development and that got me thinking-- why are there still so many game development studios in California?
The only two reasons I can come up with are that they are already there and there are already so many people there. Other than that though, I can't come up with anything.
Just think about it, salaries in Texas are probably about $20-30k a year less than a California salary. If you have a studio of about 80 people, that's somewhere along the lines of saving $2million a year. In a standard 2 year game, that's 25% of the development costs right there.
You just have to wonder in times like these when things are so expensive and troubling that studios hold so tight to their guns and don't move to any of the much cheaper places where states offer tax incentives, costs of living are so much cheaper, real estate is dirt cheap, and there's still a community of developers nearby.
Yeah, it costs a lot of uproot a studio, you lose people and it costs money, but just thinking how much you would be guaranteed to save is amazing.