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Capcom predicts next-gen development costs to “soar”

Wednesday, 8th May 2013 16:56 GMT By Alex Donaldson

Capcom has told investors that it believes the cost of developing games for next generation platforms will rise significantly as a result of the additional functions of the new hardware.

“Development costs are projected to soar as advanced and multiple functions are added to hardware,” the company explained to its investors as part of today’s fiscal results. “Business alliances and consolidations may therefore occur in increasing numbers.”

The company plans to reduce these rising costs through a restructure of its development teams, including plans to bring more development in-house after several externally-developed games failed to perform this generation.

Capcom also notes that there is likely to be something of a release drought leading up to the full release and spread of new hardware. While the company has Lost Planet 3 slated for this year, it seems from this statement that they may be preparing to hold fire on going all-out with next generation efforts out of the gate.

“Even though a full line-up 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,” the company said.

Thanks, MCV.

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11 Comments

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  1. theevilaires

    At the beginning of every new generation they start this BS* Man if games go to $80 a pop count me out until they hit the discount bin brand new of course.

    I thought with all this 8GB memory and super fast easy to use CPU/GPU things would have been cheaper. PC games were always cheaper than console games by at least $10 in stores. If these new consoles are more similar to PC then why the higher cost?

    #1 1 year ago
  2. OlderGamer

    Maybe because of the closed systems and liscencing fees involved. PC doesn’t have that problem. Or maybe just because they can?

    #2 1 year ago
  3. ps3fanboy

    crapcom out early to bs up the prices for new games… if prices raise i will just wait for a discount on brand new games. so suck it up crapcom!

    #3 1 year ago
  4. OlderGamer

    I would also like to add:

    “Capcom also notes that there is likely to be something of a release drought leading up to the full release and spread of new hardware. While the company has Lost Planet 3 slated for this year, it seems from this statement that they may be preparing to hold fire on going all-out with next generation efforts out of the gate.”

    I have been saying the same type of thing for a bit now. I really have a hard time seing the motivation why most non top teir companies(that can afford it) would want their new games to be on anything other then PS360 systems. It seems very plausable to me, that the PS4 and XBnxt could have the same problems WiiU has.

    Too expensive(no where near impulse price points).
    Not enough software.
    Doesn’t do anything that gamers want more then what they already have.
    And so on.

    I really have to wonder how well the new systems will sell during the first two years of their cycles? Would be funny and sad if the “winner” of the next generation was a Playstation 3. The new systems will face stiff competetion, not so much from each other but from cheaper, older systems with huge libaries and solid services. Will be interesting to watch.

    The one way I think this gets avoided is for PS4/XBnxt to graphicly blow the doors off of PS360/PC gaming. I just don’t see that happening either.

    #4 1 year ago
  5. OlderGamer

    If there is a heavy digital focus, folks, prices won’t likly drop very fast. We can see used/older game prices remain high in some cases now. That is due to the same games being offered for download at higher prices. The likly outcome is that games just won’t sell as much on the new system, further hurting the industry. Esp if the costs to dev/pub them are indeed higher.

    See my rant above. Why pick PS4 with 80usd games over a PS3(that will likly also have the multiplat 3rd party games) at lower prices?

    #5 1 year ago
  6. SlayerGT

    @3 Enjoy your micro transactions, day one dlc, and online passes.

    #6 1 year ago
  7. DuckOfDestiny

    My question is, why do games need to cost this much?

    Why can’t they spend money on smaller, lower budget games and adjust their sales targets accordingly?

    Why does everything have to be AAA spectacle that sells millions?

    #7 1 year ago
  8. Francis O

    @7 Greed…plain and simple

    #8 1 year ago
  9. Mjorh

    They’re suggesting a considerable increment in games price ,it’d be good if they pay attention 2 the quality of their products rather than prices n stuff!

    #9 1 year ago
  10. DrDamn

    They are saying they will soar if they continue developing like they do, I.e. badly. If you look at companies with big internal studios like EA they are expecting a small increase in costs.

    Also they talk about a release drought *before* the consoles are released, I.e. on current systems. Completely different to the implications in the article and OG’s comments.

    There will obviously be a transitional period as developers switch to new systems, but the benefits of switching are also there too. Less competing products (new and legacy), gaining valuable experience in developing for the new consoles (important for internal devs). People buying new consoles will want to buy games for them.

    The reality is AAA development has been rising for some time, there is no massive leap in costs now, they may use it as an excuse to raise prices though.

    #10 1 year ago
  11. malethief

    @ 7 Since technology is advancing and video games have become more mainstream to cater to a larger market, companies like Capcom have increased their development budget. Certain companies feel more flash, better graphics, and larger scale=better game. You can blame that on many factors such as people wanting graphics eye candy. So some companies in the past did that not realizing it can sacrifice gameplay

    #11 1 year ago