A couple of comments about the cost of development.
1. Greystork's analysis of the tasks involved is a good summary for developing an AI aircraft, but do not underestimate the research work that is necessary even before even one line of code is written for a new aircraft.
2. The cost of development is not the base salary x manyears. If any of you are thinking of running your own business, and charge your time out at salary, then you will go bankrupt very quickly! As a rule of thumb you need take (salary+employment costs) x 2 in order to pay for all the overheads:- offices, management, sales and marketing, administration, taxes etc etc.
Example: EA's financials for the last announced quarter (June 2007)
Sales $395M
Cost of Goods $137M
Development $250M (note: in addition some development is charged to the Balance Sheet)
Admin $153M
[EA made a loss in that quarter, but will make it up in the next 2 quarters - holiday season)
3. A new AI aircraft does not make any revenue, unless the community would like to pay for it!
4. Russian labor costs for high quality programmers may ten years ago have been much cheaper than in the West, but now it is not significantly so - Try taking a shopping trip to Moscow to see what goods cost!
5. Game Development costs are now typically $5M-$15M spread across 1 -3 systems (PC, PS3, XBOX 360). Unfortunately not every title can get into the world top ten and sell 1M+ units, it is a risky business!