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[UbiSoftologist]

In a research note released early this week, Anthony Gikas of Piper Jaffray & Co predicted R&D costs of video game publishers to soar more than expected from 2005 to 2006:

We expect the Xbox 2.0 to launch in November 2005 and the PlayStation-3 to launch in November 2006. We think the incremental expense to develop for the Xbox platform before the PlayStation will be greater than many expect. Currently the typical front-line development process calls for the development of a video game for the PlayStation platform (e.g., $10M-plus) followed by an affordable port to the X-Box platform (e.g., $1.5M-plus). What happens when the X-Box launches before the PlayStation... you have two primary platforms to develop for, and R&D costs escalate. On balance, we think publishers will have more primary SKUs in their pipeline starting in late CY05 through CY07. Technologies of the X-Box and PS3 are moving closer to together and ports from the X-Box to the PS3 may be possible at higher incremental costs. Additionally, we think game development costs for the next generation of video game console software will increase 50%-75% (we hear from publishers a range of 30%-300% increases). And finally, we are hearing from developers that development cost for a front-line PSP title will certainly be in excess of $2 million per title (maybe much higher). At the end of the day, we expect R&D costs will move higher than anticipated during CY05-CY06 as publishers not only contend with new and more expensive technologies but development for three primary new platforms (PSP, X-Box and PS3). We expect the R&D ramp to moderate during the 2H07.

 

[DSN2K]

we are hearing from developers that development cost for a front-line PSP title will certainly be in excess of $2 million per title (maybe much higher).

not good but was expected.

If sales are the same as they were on Gameboy's that spells trouble.

 

[Grubdog]

Everything i've heard about next gen has led me to believe we're going backwards, fuck PS3 and Xbox 2.

 

[Scalemail Ted]

I kinda expect the PS3 to read the UMD games for PSP.

 

[Gazunta]

not good but was expected.

If sales are same are the same as they were on Gameboy's that spells trouble.

Tell me about it. Today one of my artists asked me to buy him a chair.

I mean christ, are we running a charity here?

 

[Jumpman]

I guess Nintendo don't exist anymore.

Seriously, ignoring Revolution is one thing, but if you are mentioning PSP, how in the hell can you not mention GBNext, or DS for that matter?

 

[Scalemail Ted]

I guess Nintendo don't exist anymore.

Seriously, ignoring Revolution is one thing, but if you are mentioning PSP, how in the hell can you not mention GBNext, or DS for that matter?

Maybe development for those games are cheap enough for them not to want to talk about and disprove whatever point it is they're trying to make.

 

[ZombieSupaStar]

there is an article on cnn/money how the msrp next gen might be 59.99 also


http://money.cnn.com/2004/09/29/commentary/game_over/column_gaming/index.htm

 

[UbiSoftologist]

Seriously, ignoring Revolution is one thing, but if you are mentioning PSP, how in the hell can you not mention GBNext, or DS for that matter?

That's my query as well.

 

[Scalemail Ted]

there is an article on cnn/money how the msrp next gen might be 59.99 also

hah... At the rate games drop in price now; there's no reason not to try to sell them for $60 first...then drop them to 50...then 40...then 30...then 20.