"Developing games for current generation consoles apart from the Nintendo Wii is quite expensive, and many are expecting development costs to double with the new consoles - Xbox 720 and PlayStation 4. However, Strauss Zelnick, CEO of Take-Two Interactive, doesn't seem to think so. He thinks it would be cheaper.
The cost for developing games in full High Definition on both the Xbox 360 and PlayStation 3 has always been an expensive affair, mostly so on the PlayStation 3, since its architecture is unfamiliar to many game developers. Because of this, many developers chose instead to create content for mobile devices, such as Android iOS, and Windows Phone handsets. As for those who persevered, the high development cost forced some companies to wave the white flag, while other had to lay off employees to stay afloat.
With the Xbox 720 (codename Durango), and the PlayStation 3 (codename Orbis), just around the corner, it is expected that the cost of developing games for these platforms could be twice that of the current. This is mainly due to increase in processor and graphic speed and power.
However, Strauss Zelnick, boss of Take Two Interactive seems to have a different take on things.
"We don't have a ramp-up of operating expenses for the next generation," according to Zelnick during a Take Two Interactive investor conference call. "I think I'll answer a question you didn't necessarily pose, which is, do we believe that titles to be a whole lot more expensive to make for next-gen, and 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."
The way Strauss Zelnick explains, it appears it would all depend on the type of technology next generation consoles present to developers, along with how easy development kits are in handling.
The video game market has been in a state of flux for the past several years. Higher game development costs could potentially open the door for mobile gaming to completely take over the space. But if Zelnick's assumption is correct, the video game industry could be set for a resurgence.