Activision’s Investment: A Whopping $1.8 Billion on Three Call of Duty Games

Describing the capabilities of Activision Blizzard

Legal documents identified by Sport File reveal that Activision Blizzard invested nearly $1.8 billion in the development of three Call of Duty games, which collectively sold 114 million copies globally.

Patrick Kelly, Activision’s former head of creative for the Call of Duty franchise, revealed this information in a California court in December 2024, as part of a lawsuit lodged against the company last May.

The suit claims there are connections between a school shooting that occurred in Uvalde, Texas, and the Call of Duty series. It asserts that the shooter was inspired to perpetrate violent actions after engaging with the series, which culminated in the tragic event that claimed the lives of 19 students and two adults.

Kelly provided the development expenses for the three titles the shooter allegedly played in order to give the court context regarding how the franchise is developed and functions, enabling Activision’s legal team to reference that data during the lawsuit.

In his testimony, he disclosed that Call of Duty: Black Ops III cost $450 million to create over its entire lifecycle, eventually selling 43 million copies since its release in 2015.

Call of Duty: Modern Warfare was developed over “multiple years” at a cost of $640 million, selling 41 million copies after its launch in 2019.

The 2020 release Call of Duty: Black Ops Cold War incurred development costs of $700 million throughout its entire lifecycle and sold 30 million copies.

It’s important to highlight that these figures represent lifetime development expenses for each title, typically encompassing years of robust post-launch support. However, as noted by Sport File, they do not account for marketing expenditures, which can be a significant cost in their own right.

“Sustainability” and AAA game development

The gaming industry continues to grapple with the rising costs associated with AAA development amid a surge of layoffs and studio closures that have affected staff at major companies like Microsoft, Sony, EA, Embracer, Take-Two, and others.

Significant development expenses can distort the meaning of success, raising questions about what the term ‘sustainability’ (often used by industry professionals in discussions about widespread layoffs) truly means in the current increasingly volatile environment.

While AAA budgets are typically kept confidential, we have gathered some additional key figures in recent years. In 2023, CD Projekt Red informed investors that it spent $63 million on the development of Cyberpunk 2077 expansion Phantom Liberty. This follows its investment of around $300 million to produce the original game, with 55 percent attributed to “direct development costs.”

Court documents submitted by Sony during the Microsoft v. FTC trial also provided insights. These documents revealed that the six-year development of The Last of Us Part II cost $220 million. The platform holder also invested approximately $212 million in the creation of Horizon Forbidden West over a period of five years.

Last year, Game Developer spoke with various developers about the escalating expenses involved in creating video games in the United States (home to titles like Call of Duty) and how studios in this landscape can remain viable.

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