Take-Two doesn't expect higher dev costs with new consoles
Strauss Zelnick tells investors that new technology could even bring costs down
Take-Two Interactive CEO Strauss Zelnick believes that the next-generation of consoles will not herald a rise in development costs.
In a call with investors, reported by Videogamer, Zelnick stated that he doesn't expect Take-Two's operating expenses to increase when Microsoft and Sony's next consoles are launched.
"We don't have a ramp-up of operating expenses for next-generation," he said.
The arrival of the Xbox 360 and the PlayStation 3 sparked a sharp rise in the cost of AAA development, squeezing profit margins in a way that made life difficult for all but the largest studios. However, according to Zelnick, the new consoles could even bring costs down.
"Do we believe that titles to be a whole lot more expensive to make for next-gen? The answer is we do not. In many instances we believe that it may be somewhat easier to make titles for next-gen depending on how the technology comes together."

Probably true. The vast ramp up in development cost with the move to HD consoles came from creating vastly more art and then moving all those pixels around.
All the upcoming consoles are going to do is to implement HD properly, so 1080p will run at an acceptable framerate.
So no vast change in the amount of content that needs to be generated.
Posted:6 months ago