Why Naughty Dog Founder Sold Studio to Sony

Ellie from TLOU; Still from Intergalactic promo
Credit: Naughty Dog | fair use for promotional purposes

Ellie from TLOU; Still from Intergalactic promo
Credit: Naughty Dog | fair use for promotional purposes

There’s no doubt that when it comes to exclusives, PlayStation has been kicking Xbox in the ass, and a lot of that success is thanks to Sony-owned studios like Naughty Dog.

With Naughty Dog exclusively making games for PlayStation after all these years, co-founder Andrew Gavin looks back at the acquisition and says that it was probably for the best when it came to the studio’s growth at the time.

Naughty Dog for Sale

In a recent post on LinkedIn (via Video Games Chronicle), Gavin talks about how the climate around the studio's early days had changed over the years. “In the early 80s, games cost less than $50,000 each to make… By the time we got to Jak and Daxter, the budget busted the $15 million mark,” said Gavin.

Now, looking at the budget required for modern AAA video games, studios are looking at hundred-million-dollar budgets. Just looking at Naughty Dog’s latest game, The Last of Us Part II, the studio allegedly spent $220 million to develop the title.

Gavin continues:

“Selling to Sony wasn’t just about securing a financial future for Naughty Dog. It was about giving the studio the resources to keep making the best games possible, without being crushed by the weight of skyrocketing costs and the paralyzing fear that one slip would ruin it all… Looking back, it was the right call.”

The Right Call

Promo image for Uncharted
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Credit: Naughty Dog | fair use for promotional purposes

When it comes to big brands owning studios, many fans can say that Naughty Dog has been lucky in their relationship with Sony.

Besides the success of the Uncharted franchise, they’ve also managed to make some critically acclaimed projects like The Last of Us Part II—which is technically dazzling and a marvel of video game storytelling.

The same cannot be said for studios like Firewalk, which Sony had to close after the disastrous launch of its AAA multiplayer game Concord.

What’s In Store for Naughty Dog

For now, Naughty Dog is looking at its next game from director Neil Druckmann. It’s not The Last of Us Part III, but a new franchise dubbed Intergalactic: The Heretic Prophet.

Not much is known about the game’s story yet, but it’s set in a retro-futuristic sci-fi world full of analog technology and clunky robots—a far cry from the more grounded Druckmann titles like The Last of Us. The world is said to be heavily inspired by retro sci-fi anime like Cowboy Bebop and Akira.

It’s unclear when Sony will give fans a new look at Intergalactic, but judging by the recent announcement, they likely plan to release the game in a year or two.

With so much time between the release of Intergalactic and The Last of Us Part II, fans can only assume that the game has been in development for quite a while, and it’s only a matter of time before they get to see some gameplay.

No release date has been set for Intergalactic: The Heretic Prophet, but fans hope it will be available for the PS5 by 2026.