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Publisher Are Unsure About Xbox 720 and PlayStation 4 Development Costs

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With Sony and Microsoft’s new consoles rumored to be coming out this year, game publishers Activision, Take Two, and Ubisoft have been contemplating the development costs of video games, and, by extension, a possible increase in the price of games from the current $59.99. Take Two and Ubisoft CEOs Strauss Zelnick and Yves Guillemot believe that development costs won’t increase dramatically, at least during the beginning of the next generation.

“We don’t have any reason to believe our development budgets will change
significantly. If anything we have become – group-wide – much
tighter in terms of how we spend our money.”
— Strauss Zelnick

“What we’ve said is that, for the first two years of those machines, the
costs will not increase because we can use a lot of the engines that
we’ve already created.”
— Yves Guillemot

Activision CEO Bobby Kotick, on the other hand, expects prices to go up.

“This is my 22nd year doing this, and in every single console
transition, we’ve seen an increase in development costs. Over long
periods of time, it gets smoothed out, but I would say this is not a
transition where that’s going to be an exception. We’re going to have to figure out how to take advantage of the unique
capabilities of new hardware, and that requires new skills and
investment in tools and technology and engines and so yes, that’s
likely.”
— Bobby Kotick

The fact that these people are even considering an increase in price shows that, at the very least, the technology of video games will become noticeably more powerful and complex. What are your thoughts on this?

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