AAA (video game industry)
An AAA game (usually pronounced "triple A game") is an informal classification used for video games with the highest development budgets and levels of promotion. AAA game development is associated with high economic risk, with high levels of sales required to obtain profitability.
In the mid 2010s the term AAA+ began to be used, describing AAA type games that generated additional revenue over time in a similar fashion to MMOs by using software as a service (SaaS) methods, such as season passes or expansion packs.
Even though the 3 A's in "triple AAA games" do not stand for any specific acronym they are normally suggested to mean that a game requires:
- A lot of time.
- A lot of resources.
- A lot of money.
The term "AAA" began to be used in the late 1990s, with some development companies started using the expression at gaming conventions in the US.
By the seventh generation of video game consoles (late 2000s) AAA game development on the Xbox 360 or PlayStation 3 game consoles typically cost low tens of millions of dollars ($15 to 20m) for a new game, with some sequels having even higher total budgets - for example Halo 3 is estimated to have had a development cost of $30m, and a marketing budget of $40m. According to a whitepaper published for EA games (Dice Europe) the seventh generation saw a contraction in the number of video developing houses creating AAA level titles, reducing from an estimated 125 to around 25, but with a roughly corresponding fourfold increase in staffing required for game development.
During seventh generation AAA (or "blockbuster") games had marketing at a similar level to high profile films, with television, billboard and newspaper advertising; a corresponding increasing reliance of sequels, reboots and similarly franchised IPS was also seen, in order to minimize risk. Costs at the end of the generation had risen as high as the hundreds of millions of dollars - the estimated cost of Grand Theft Auto V was ~$265m. The same conditions also drove the growth of the indie game scene at the other end of the development spectrum, where lower costs enabled innovation and risk taking.
At around the period of transition from seventh to eighth generation of consoles the cost of AAA development was considered by some to be a threat to the stability of the industry. Several large developers were reporting single figure percentage profits; the failure of a single game to meet production costs could lead to the closure of a studio - Radical Entertainment was closed by parent Activision despite selling an estimated 1 million units on console in a short period after release. Ubisoft game director Alex Hutchinson described the AAA franchise model as potentially harmful, stating he thought it led to either focus group tested products aimed at maximizing profit, and or a push towards ever higher graphics fidelity and impact at a cost of depth or gameplay.
The Eighth generation of video game consoles (PlayStation 4, Xbox One, Wii U) saw further increases in costs and staffing - at Ubisoft AAA game development involved 400 to 600 persons for open world games, split across multiple locations and countries.
The need for profitability caused publishers to look at alternative revenue models, where players continued to contribute revenue after the initial purchase, either by premium models, DLC, online passes, and other forms of subscription. In the mid 2010s large publishers began a focus on games engineered to have a long tail in terms of revenue from individual consumers, similar to the way MMO games generate income - these included those with expansion or season pass content such as with Destiny, Battlefield, and the Call of Duty series; and those which generated revenue from selling in-game items, sometimes purely cosmetic, such as Overwatch or League of Legends. Titles of this type are sometimes referred to as "AAA+".
The console videogame industry lacks the equivalent of a B movie, made for TV, or direct-to-video scene. However, games with very low production costs that are not critically well received are sometimes referred to as "bargain bin" titles.
The term "AAA+" has been used by publisher CD Projekt in an attempt to promote their new content as being of a very high quality; additionally the term has been used with a different meaning to figuratively describe AAA games with additional methods of revenue generation, generally through purchases in addition to the cost of the base game. In 2016, Gameindustry.biz described AAA+ games as products that "combine AAA production values and aesthetics with Software as a Service (SaaS) principles to keep players engaged for months or even years".
In general use the term "AAA+" may refer to a subset AAA games that are the highest selling or have the highest production values.
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