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.