Capcom thinks next-gen development costs "will soar"

Developing titles for PS4 and the new Xbox will be significantly more expensive than current-gen programming, according to Capcom.

The result, it has told investors, is that release schedules – which are already experiencing quite severe levels of drought – are liable to become even leaner in the future.

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, awaiting the full-scale launch of the next generation machines,” it stated.

In the meantime, development costs are projected to soar as advanced and multiple functions are added to hardware. Business alliances and consolidations may therefore occur in increasing numbers.”

That won’t be the only challenge for traditional markets, either.

The emergence of smartphones has lent momentum to platforms other than game-only machines,” Capcom added. Amid this development, the social game market is projected to be on a growing. Competition is thus expected to become extremely intense among companies.

Faced with this sudden and significant changes in the operating environment, Capcom intends to direct its development resources to the home video game software, which is our core business segment, and the

development of online games, which is a growing area, based on its medium-term strategic map.”

All of which could lead you to think that Capcom could be about to exit the market. Not so. Instead, it plans on making itself simply more efficient.

In order to lower development costs and shorten time frame for development, Capcom will restructure its development organizations, which are the core parts of the company’s business, increasing ratio of in-house

developments by focusing on the overhaul of overseas development companies,” it stated.

Streamlining measures will also be taken over the entire business operations as part of efforts to strengthen the management system. Such measures will include further improvements in transparency, efficiency, cost reductions and financial structure.”

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