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Forums - Gaming - Why are there still so many game studios in California?

twesterm said:
Slimebeast said:
twesterm said:

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. 

How can that be??

I fought the US had a unified economy.

It varies state by state and varies even more city by city.

For example, the cost of living in California is *vastly* different.  So much so that you can live decently in Texas for $30k/year while you be in near poverty and have to scrimp and save on $30k/year in most California places.

Going even further, I live in the Dallas metroplex in Texas which is usually called DFW (Dallas/Fort Worth) or just Dallas when it's actually like 12 cities.  If you live in Plano (a DFW city) it can get fairly expensive by Texas standards to live there while where I live now, Lewisville, another DFW city, it's incredibly cheap.

So is there a big difference in salaries between Dallas and Los Angeles? Cos Dallas/Fort Worth is a big city too.



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If a developer needs to cut costs, they can cut salaries without packing up and moving halfway across the country.



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Slimebeast said:
sethnintendo said:
@slimebeast, cost of living varies a lot depending on the state and city. It even varies a lot between cities in the same state. A gallon of gasoline may cost 2.50 in Texas but it cost around 4.00 in Cali. Cali is one of the most taxed states so the cost of living is very high there.

Yes, but price difference in cost of living is like that all over the world, here in Sweden too. A house in rural areas cost almost nothing and while in big cities all housing is very expensive. Still, in Western Europe salaries aren't adapted to differences in cost of living. In Sweden you get paid the same in pricey Stockholm as in cheap villages.

I don't think that's true Slimebeast. Maybe for your profession but not in general. I mean look at this site:

http://www.lonestatistik.se/jamfor.asp/sok/1

 



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twestern do you mean $30K before or after taxes?

I think $30K is actually quite a lot of money lol.



As a side note to my post above, I wanted to mention that California isn't at all "special", with regards to taxes pertaining to video games, etc.

Montreal, on the other hand, is. Ubisoft Montreal (and every game studio in Quebec) has about half of their employee salary costs paid by the government. No joke.

This is one of the reasons the number of people working on Ubisoft games always seems so high.  They are an unusual developer, with some unusual strategies.  They favor the "more people" approach over the "more time" approach, thanks to their situation, but it doesn't really have to be that way for them.  They could benefit from the unique advantages Quebec offers them via traditional means, but they have chosen the "throw more people at it" approach.  I think the diminishing returns of that approach bites them, in the end, but... they do make some good games (at least on the HD platforms).



 

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NJ5 said:
Slimebeast said:
sethnintendo said:
@slimebeast, cost of living varies a lot depending on the state and city. It even varies a lot between cities in the same state. A gallon of gasoline may cost 2.50 in Texas but it cost around 4.00 in Cali. Cali is one of the most taxed states so the cost of living is very high there.

Yes, but price difference in cost of living is like that all over the world, here in Sweden too. A house in rural areas cost almost nothing and while in big cities all housing is very expensive. Still, in Western Europe salaries aren't adapted to differences in cost of living. In Sweden you get paid the same in pricey Stockholm as in cheap villages.

I don't think that's true Slimebeast. Maybe for your profession but not in general. I mean look at this site:

http://www.lonestatistik.se/jamfor.asp/sok/1

 

For some professions there's some significant differences, like high level IT business and economics, but I can't see much difference in general browsing some categories on that site.



Kantor said:
If a developer needs to cut costs, they can cut salaries without packing up and moving halfway across the country.

You're kind of thinking of developers as robots who will put up with that kind of treatment, with this statement.

There is fierce, fierce demand for experienced devs in the games industry.  It has a high burnout rate, and those able to weather the taxing workload long enough to become senior, experienced devs are not folks you can cut the salary on.

Likewise, newbie developers, while they have lots of energy, struggle so much with the details of game development (without guidance from experienced devs), that hiring them alone isn't really a valid option, either.



 

One theory I have kicked around that addresses this is the concept of "Meccas". An area get established a major economic center in something, and has all the infrastructure and support and other needed elements in place, so the area then becomes the place (a Mecca) for something. It isn't just videogames, but advertising (Madison avenue), plays (Broadway), the NYC garment district, Wall Street, Chinatowns, Gambling (Las Vegas, Atlantic City) and the movie industry (Hollywood). Things from schools to suppliers come together, and you end up with an excess of studios in a given area.  And, looking over this thread, and what I listed, one can see how Meccas can spawn off other Meccas, if they are related.

When an area establishes a Mecca status, then it becomes a lot easier to do things for the community, and fund programs. Up where I am north of NYC, they don't have that, and funding programs, and employment is real challenging.



Slimebeast said:
twesterm said:
Slimebeast said:
twesterm said:

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. 

How can that be??

I fought the US had a unified economy.

It varies state by state and varies even more city by city.

For example, the cost of living in California is *vastly* different.  So much so that you can live decently in Texas for $30k/year while you be in near poverty and have to scrimp and save on $30k/year in most California places.

Going even further, I live in the Dallas metroplex in Texas which is usually called DFW (Dallas/Fort Worth) or just Dallas when it's actually like 12 cities.  If you live in Plano (a DFW city) it can get fairly expensive by Texas standards to live there while where I live now, Lewisville, another DFW city, it's incredibly cheap.

So is there a big difference in salaries between Dallas and Los Angeles? Cos Dallas/Fort Worth is a big city too.

Oh yeah, DFW is HUGE but that isn't what really decides it.  California is just...expensive.  That's all there really is to it.

Slimebeast said:
twestern do you mean $30K before or after taxes?

I think $30K is actually quite a lot of money lol.

Before taxes, and it's only a lot depending on where you live.  Like I said, $30k/year in Texas isn't a big deal and you can live on it fine, it sucks in California.



Procrastinato said:
Kantor said:
If a developer needs to cut costs, they can cut salaries without packing up and moving halfway across the country.

You're kind of thinking of developers as robots who will put up with that kind of treatment, with this statement.

There is fierce, fierce demand for experienced devs in the games industry.  It has a high burnout rate, and those able to weather the taxing workload long enough to become senior, experienced devs are not folks you can cut the salary on.

Likewise, newbie developers, while they have lots of energy, struggle so much with the details of game development (without guidance from experienced devs), that hiring them alone isn't really a valid option, either.

I think a $20,000 salary cut would be more popular with the developers than a $20,000 salary cut AND moving to Texas.

They would lose employees either way, of course, but if they have to cut costs, they have to cut costs, and better a smaller salary than no job.



(Former) Lead Moderator and (Eternal) VGC Detective