Capcom: Development costs are ‘projected to soar’ with next-gen consoles
Capcom stated recently in their financial review that they expect development costs to ‘soar’ with next-gen consoles. This can’t be a good sign for many developers hoping to break in or continue to be a part of the console market.
Even though a full lineup of new home video game consoles will eventually be released, the industry is likely to be in a period of scant new product releases over the near future, awaiting the full-scale launch of the next generation machines. In the meantime, development costs are projected to soar as advanced and multiple functions are added to hardware. Business alliances and consolidations may therefore occur in increasing numbers.
Development costs are already way too high. Some games aren’t turning a profit with two to three million units sold. I can’t imagine how much worse it will be with next-gen consoles increasing the average game budget.
The fear with this is that big publishers won’t be willing to take as many risks and will stick to recycling big IPs like Resident Evil, Call of Duty, etc. It looks like we have a lot more sequels coming out way folks!