I wonder how much increasing fidelity requirements are the main culprit here? Myst was made by a team of about 7 people (only 4 of them full-time), in just about 2 years, and cost under a million (adjusted for inflation). Riven had a team twice the size, took twice as long, and cost 10-15x as much. Apart from Exile, which was handed to a more experienced developer who got it done faster and cheaper, the remaining seq…
They sold six million copies and made a big profit from Myst, which they presumably invested in the company, to make the next game, with the profits from that (and the diminishing returns from Myst) topping up their coffers. At some stage of the journey they took so much money out of the company that they could not fund development without taking on loans, albeit as advances from publishers. Why does every business h…
I could save for 40 years for a house, or buy one today with debt today. In the latter case, I get to enjoy it now and save money on rent.
Basically the whole world works this way. You could save and then spend, or spend then repay.
In a lot of context, you make or save more by spending sooner than the cost of interest.