Capcom Believes Next-Gen Development Won’t Increase Costs
New consoles bring increased development costs, but Capcom said it has plans to keep them “roughly the same.”
In a recent financials Q&A, Capcom explained how it will use internal development and other operational efficiencies to maintain the cost of development on next-generation consoles.
Capcom has announced the fantasy game Deep Down (working title) for the PlayStation 4, and nothing yet for the recently revealed Xbox One.
“We believe that, by being able to achieve clarity in scheduling and in budgetary control,” Capcom wrote, “and by aggressive hiring of new graduates and the effective deployment of the existing human resources within the company, we will be able to maintain roughly the same level of cost performance.”
When asked about the state of its next-generation game development, Capcom said it has carefully looked at “hardware penetration rates and market conditions,” to determine what titles to develop.
“Moreover we think that, by exploiting the potential of our own in-house developed engine and improving the efficiency of our development structure, we shall not have to significantly increase our development costs from the currently prevailing level for existing consoles.”
Capcom said next-generation development costs “will soar,” earlier this month, and announced its plans to restructure and streamline its development process, focusing on “home video game software,” and online games.
At the same time, Electronic Arts said its next-generation costs will remain consistent, and Activision warned its investors of “uncertanties of the console transition.”