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NJ5 said:

Actually Gears of War is said to have cost $10 million:

http://blog.wired.com/games/2007/02/interview_epics.html

However this is a very rare budget for a HD game, for two reasons:

1- It doesn't include engine development or licensing (since Epic used their own engine)
2- Parts of the game development were outsourced to Epic China (a subsidiary that Epic opened there).

It surely doesn't include marketing either.

Granted and conceded, but that's why I'm talking about Mario Galaxy rather than Gears - Epic's games are very confusing in terms of absolute cost.