Was talking to some people involved in the games industry recently
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Labour costs were a concern but the lack of available talent was the biggest one. Most talent needs to be imported.
I have friends who have worked in the Games industry for many years. What these companies are saying is that there is no talent available for the price they are willing to pay. The salaries most of these companies are willing to pay are atrocious.
Not only that but they constantly seem to only want young 23-27 year old programmers who are single etc, so they don't mind working endless 'free' weekends and crazy levels of unpaid overtime.