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CDiablo said:
I dont think the industry average per year in most areas of game development is $120,000.

Read the blog. And it's not $120.000 per year.

If a company has 100 developers the average cost of development would be $12.000.000 per year.

I think I trust actual insiders over some random guy on the internet. Anyway, it's just a rough estimate, not a fact.