Rare boss Mark Betteridge has said that developers' "approach" to budgeting is "naive".
Speaking to Develop, he said: "I still think the industry takes a naive approach to estimating budgets when compared to other industries. You might have artists or coders getting paid as employees with little to do because a game isn't yet in production."
His comments were included in a special report on the site, which showed a "sudden decline" in big budgets for games.
Rare is currently working on Natal games, with one of which rumoured to be a Wii Fit-like title.