An anonymous reader writes "Video game development budgets have been rising for years, and the recent launch of a new generation of consoles has only made it worse. Developers of AAA titles are now fighting to keep costs manageable while providing the technological advances gamers have come to expect. Just a few years ago, budgets ranging above $100 million were considered absurd, but now Activision is committing $500 million to a new IP from the studio that created Halo. Alan Roberts, technical director for Playground Games, says development teams keep expanding: 'Our in-house development team is roughly 20 per cent bigger than it was on last-gen, but we're doing even more with outsourcers this time in order to create content to the level of detail required by new generation games.' He adds that one way studios are trying to defray costs is to put more effort into building great tools for content creators."