I don't think it is budget or even time constraints, they have the entire episodes to themselves last night, that is an hour of screen time. In movie terms, that is half a movie dedicated to a single battle which is plenty.
The Two Towers had a budget of $94M, which in today's money is more like $120M. That's more than the budget for the entire season of GoT. Season 1 is estimated to have cost HBO $50-$60M, with a 15% rise each season, so the budget for S4 must have been something like $76-$91M.
The budget for Game of Thrones being tight isn't speculation; it's fact. The producers have discussed publicly their desire to use the Direwolves and Dragons more, to have more special effects and bigger scenes in the show. Unfortunately, they don't have the money to do it. Even without all of these things, Game of Thrones is an expensive show to shoot - they are on location in two to three different places every season. Thankfully, the budget is increasing each season, and it does show.
They certainly could have made the battle at The Wall epic. They could have followed the book to a tee. But the money would have needed to come from other episodes. Personally, I'm with the producers on this one. I'd rather have the budget spread across episodes than see the other nine suffer just to make this battle as epic as it is in the books. The battle had enough budget to make the point - the Wildlings can easily crush the Night's Watch. Taken in the context of the story, it was totally adequate.
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