Development costs will soar on next generation consoles, claims Capcom.
In a statement for its latest financial report, the publisher said it expected the costs of game creation to rise significantly on new hardware as a result of the advances in new technology.
Despite this however, Capcom said it would be directing its development resources to the home video game software market and to the development of online games.
As well as soaring development costs, the company said it anticipated few relases in the near future as developers prepare for the PS4 and next Xbox launches.
“As for future prospects, the industry is expected to find an increasingly mature market of home video games, which is our core business segment,” read a statement.
“Even though a full lineup 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. 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.”
One of Capcom's most recent big releases, Resident Evil 6, was believed to have more than 600 staff working on the project. The title's executive producer Hiroyuki Kobayashi said the game was "by far the largest-scale Capcom has ever embarked on".
“Between the 150 staff members in Japan and everyone around the world we have more than 600 people involved. A lot of work has gone into this game,” he said.
Despite selling 4.9 million copies however, Capcom said the game had not met its sales projections and "was not able to play a role in leading the segment's sales growth".
In an effort to lower development costs and also shorten the time to create a game on next-gen hardware such as the PS4 and next Xbox, Capcom said it would be restructuring its business and moving more development in-house.
“In order to lower development costs and shorten time frame for development, Capcom will restructure its development organisations, 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 said.
“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. Capcom will endeavour to create a corporate constitution that enables its group as a whole to respond flexibly to a changing environment.”