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Capcom Expects Next-gen Development Costs to “soar”

Capcom told investors at the latest investor meeting that they full expect the cost of development to rise significantly with the next round of consoles. 

“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.”

Capcom has stated that they plan to develop more titles in-house to combat these rising costs. They also think that there will be a drought of new games developed on the new consoles before they go in fully. Lost Planet 3, Ducktails, and Resident Evil Revelations are the only games the firm is releasing this year. Suggesting that their next generation efforts will not be front loaded.

“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.

I can see why Capcom doesn’t want to jump fully into “next-gen” development. The costs will be high, and the success of the machines is questionable at this point. However, Monster Hunter 3 Ultimate sales have shown that people are willing to buy great games no matter how they look.

Capcom can develop Monster Hunter 4 and other safe bets on Wii U first, lower cost and a set install base. Then when the PS4 and Xbox 720 establish their ground, develop for those systems as well.

Source

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Author: Francis@PE (15483 Posts)


20 Responses to Capcom Expects Next-gen Development Costs to “soar”

  1. Aika says:

    This might be problem for the devoloper (correct me if im wrong) they think going only better graphic or realistic look will be going on forever but, the problem is the cost, some want to go loco on spending money thinking getting big profit because of it. It feels some developer are lazy while other try their best to make good game and get money. Some gamer will defend the "graphic is important" but i saw this generation more closure of developer and studio. I hope developer take notice about the raise of the cost.

  2. timg57867 says:

    Also, does someone have a link to Monster Hunter 3 Ultimate's current sales?

    • RicardJulianti says:

      From what I've seen….it's around 70k in the US, 20k in EU, and 210k in Japan. 330k overall.

      Going off of VGChartz….which I hate to do. But I just mowed the lawn and am too tired to look up NPD and MediaCreate numbers ……we don't get official word from EU I don't think.

      I really don't think the port cost them that much to do, so making over $19m on a port that has been done quite a few times is pretty damn good.

      Edit: Seems Capcom thinks it's a "Smash hit" which is excellent. http://gonintendo.com/?mode=viewstory&id=2021

  3. timg57867 says:

    If what I am reading is true, than the Wii U will probably dominate Japan. Not only is Sony shifting focus, but if Capcom, one the biggest third party devs in the country, is having issues developing for next gen consoles, then imagine the problems the littler guys will run into. I will be VERY surprised if see any Japanese-style titles get announced for the PS4 from companies other than Capcom and Square Enix and are able launch within it's first 6 months on the market. I will be even MORE surprised if they're announced as exclusives.

    • RicardJulianti says:

      Even Sony's "Japan Studio" is making a western Pixar game for crying out loud. It'll be interesting to see how this works out considering Nintendo has actively courted developers. Shin Megami Tensei x Fire Emblem is "only the beginning" and Nintendo "has begun many collaborations with outside development partners to bring the best franchises and experiences to Wii U."

      Get their teams working with Nintendo teams, get them familiar with the hardware and help optimize so they know how in the future, use Nintendo's QA…….$$$$$….more games to the system. I am exited to find out what other collaborations there are. Atlus and Bamco so far……..

      • timg57867 says:

        Oh yeah. People think Nintendo does awful with third parties. But in reality, over the course of this generation, Nintendo has slowly but noticeably been gaining the support of all the major players in Japan. Heck, even their relationship with Square Enix seems to be improving as they seem to have some kind of exclusive deal with Dragon Quext. DQX bombed, but the remake sold gangbusters so Square can't be mad. It'll be interesting to see what other collaborations they have in store. Wouldn't be surprised to see something from the Pandora's Tower and Last Story developers.

        PS: I think you meant "Namco". XD

  4. RicardJulianti says:

    It's a little scary to me how this almost confirms my first 2 articles…..

    3rd party support because of diminishing returns and bloated budgets, and bloated budgets will crush the industry if they don't take a step back. My third article confirms itself.

    This quote is quite telling, "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."

    What is that? There will be large game droughts because games cost more and take longer to develop? Well then……

    • Furious Francis says:

      We're seeing it with Nintendo, developing HD games is tough. It takes a lot of resources and manpower. If third parties think they can just get by developing on two systems, and ignoring Nintendo, were going to see a lot of studio closures soon.

  5. koopzilla says:

    I don't mean to sound like a broken record here, but it's the perfect time to get on board with Wii U. EA is digging their own grave.

    And I personally think Wii U games look great, no need to spend millions more on development cost and drive your company into the ground for some more particle effects or something that don't even matter, and most of which probably won't ever be noticed past the initial wow factor.

  6. NS3210 says:

    Which is why I laugh at some of these developers looking down upon the WiiU because it doesn't have 8GB of RAM, core this, core that, all that bullcrap. The WiiU has 2GB of RAM and the architecture for a reason, to keep costs down. These developers, particularly in the west if they release a game to PS4/720 and doesn't sell well, their gonna have to shut their doors or layoff people. In short they may bully WiiU but in the long one, they'll be back.

    • Furious Francis says:

      It's a high risk high reward kind of thing Western developers are willing to gamble with.

      • darkgamer001 says:

        Yeah, that's a pretty good way of describing it, and I think with the PS4/Next Xbox, the stakes only got higher….

      • Aiddon says:

        highER rewards perhaps, but the thing is profit margins seem to be getting lower. When games that sell a million are considered "disappointing" then developers have officially become irresponsible when it comes to money.

  7. Titan64 says:

    *clap* *clap* *clap*…Well good on you capcom. You have seen the light and said…TO HELL WITH THESE HIGH DEVELOPMENT COSTS. I am shocked guys, Capcom did something not stupid for once, in regards to themselves.

  8. Aiddon says:

    Companies REALLY need to stop this. They need to be more patient and methodical, learning the tech SLOWLY but surely and making sure budgets are reasonable. I just don't get why devs are so impatient despite it not being good for them.

  9. donzaloog says:

    All you need to do is stick with Nintendo, Capcom. They made the Wii U the way it is specifically to keep the developments costs down for everyone.

  10. Frank Urbanski says:

    Surprise, surprise. Well at least SOMEBODY is talking about it. We need to see more big companies talking about these issues. The more gamers know about the problems with high cost development, the less they will push the "more power" bandwagon.

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