Labor Expenses
Ongoing coverage on Labor Expenses.
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Games industry investors are "sitting on the sidelines waiting for obvious slam dunks", says Undead Labs boss, with labour costs a key worry
Undead Labs studio boss Philip Holt believes investors are hesitant to fund game development projects unless they are 'obvious slam dunks,' citing high labor costs, particularly in expensive regions like Seattle, as a major concern. He also discussed the studio's successful management buyout from Microsoft and its implications for the future of State of Decay 3.
Crimson Desert did so well that developer Pearl Abyss reported 94% increased labor expenses due to "performance…
Pearl Abyss reported a 94% increase in labor expenses in Q2 2026, attributing it to performance bonuses paid to 1,035 employees following the successful launch of Crimson Desert. The game has earned an estimated $200 million in two weeks and received a Very Positive Steam rating. Pearl Abyss also indicated plans for sequels, multiplayer expansions, and additional DLC for Crimson Desert.
