Zelnick: Next-gen development not more expensive

Consumers will expect better graphics from next generation games, but that doesn’t have to mean higher costs to developers, says Strauss Zelnick.

During the Take 2 earnings call today the CEO was asked if he thought next generation consoles would mean a rise in expenses.

"The answer is we do not," answered Zelnick.

"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 new consoles from Sony and Microsoft are expected to be revealed some time next year.

If these new machines mean higher development costs, publishers could face a serious challenge.

Many big labels are already struggling under the expense of traditional models no longer supported by revenue streams.

More expensive development cycles would mean proportionally greater risk for those financing game development – a prospect unlikely to result in higher profits.