http://www.industrygamers.com/news/ubisoft-estimates-60-million-for-next-generation-titles/
Ubisoft Estimates $60 Million For Next-Generation Titles
Many industry experts believe that this current console generation will be an extended one, lasting far beyond the typical five years of previous generations. Much has been made about how Ubisoft is even now preparing for the generational leap, whenever it comes, and chairman and CEO Yves Guillemot talked about it to CNBC.
"The next generation is going to be so powerful that playing a game is going to be the equivalent of playing a CGI movie today," predicts Guillemot.
Such processing power comes at a price... literally. While most current generation games cost between $20 - $30 million to produce, Guillemot expects the number to effectively double to $60 million for next-generation games. For its part, Ubisoft hopes to recoup the cost of development by reusing assets from films, such as it is doing now with James Cameron's Avatar.
While Microsoft recently declared that the launch of Natal will be like that of a new console, Guillemot thinks that consumers will still want that next step in graphic horsepower. "[Natal] is one step, but quickly they will take the other step — pushed by the environment," he says. "For us, the current machines are very powerful and we can do high quality work. I'd like to stay with this generation as long as possible, but my customers will want the best machine possible."
Of course, if streaming technology is developed so that the "cloud computer" dream is realized, that could turn the console war on its ear. "If somebody comes out with online — if OnLive manages to make this work — we will have a next generation of systems sooner than currently planned," says Guillemot.
Guillemot noted that while Ubisoft will be releasing motion controlled games, it will not be trying to adapt them to every series, mirroring statements made in a recent IndustryGamers op-ed. "The current pad for gamers is giving them a lot," he says. "They play for hours, so they don't want to get up and down. They don’t want to be tired after five minutes. These games are about reactivity."
$60 million is a kingly ransom for just one game. Considering that many game companies are having difficulty with profiting from current-gen games, there's probably fewer than 20 companies that can afford to invest in $60 million per game. Major games may truly go the way of Hollywood, where a handful of large studios fund big budget movies.
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