Originally Posted by jelly
Don't bite off more than you can chew.
I also wonder if all studios are actually business wise. Do they really budget as best they could and know what they're doing?
If you look at a small development studio of 5 to 10 people.
Using the average of 10,000 per person a month. So at the max 100,000 a month for 10 people.
These costs are not just for the creation of the game, but the expense budget just to operate the business as a whole. This factors everything into employee wages, equipment (computers and development tools), workplace costs (rent, utilities, maintenance and upkeep). All of these things are a factor.
Just like any good business they also have personal financing and accountants doing the number crunching to manage these budgets. Even a small team of developers has a means to manage their expenses.
Or that rely on something like Kickstarter and pray the public buys into what you are potentially offering (i.e Larian with Divinity: Original Sin for example)