Why Did Naughty Dog Sold to Sony?

Andy Gavin, who founded Naughty Dog with Jason Rubin in 1984, explained the reasons behind the studio’s sale to Sony in 2001. According to Gavin’s statement on LinkedIn, increasing game development costs made it impossible for the studio to survive independently. Known for famous games such as Crash Bandicoot and Jak and Daxter, Naughty Dog had difficulty financing its own projects during this period and therefore needed Sony’s secure financial support.

Naughty Dog’s Rising Costs

Andy Gavin states that Naughty Dog’s game development costs were quite low in its early years. For example, while the first games in the 1980s were made with budgets of less than $50,000, this figure rose to $1.6 million for Crash Bandicoot in 1996 and $15 million for Jak and Daxter in 2001. By 2004, AAA game budgets had reached 45-50 million dollars.

This increase was not specific to Naughty Dog; it had become a general problem in the AAA gaming industry. Stating that they had difficulty meeting this financial burden as an independent studio, Gavin stated that thanks to Sony’s financial support, they were able to get rid of this pressure and focus on creative projects.

After coming under Sony’s roof, Naughty Dog created series that achieved global success such as Uncharted and The Last of Us. Uncharted in particular became one of the most popular series on PlayStation 3, while The Last of Us received full marks from both critics and gamers. During this period, Naughty Dog became one of the most prestigious studios in the gaming world.

Read More: Red Dead Redemption 2 Gavin Theory