Activision expects greater next-gen dev costs

Bungie's Destiny

Bungie's Destiny

The new technology and tools required to make next-gen games will cause a rise in development costs, says Activision boss Bobby Kotick.

Speaking after Activision posted a strong set of financial results for the last quarter and calendar 2012, the publisher’s CEO couldn’t talk openly about the company’s next-gen plans but did suggest that getting the best from the new consoles will require greater investment.

“So this is my 22nd year doing this, and in every single console transition, we’ve seen an increase in development costs,” said Kotick. “Over long periods of time, it gets smoothed out, but I would say this is not a transition where that’s going to be an exception. We’re going to have to figure out how to take advantage of the unique capabilities of new hardware, and that requires new skills and investment in tools and technology and engines and so yes, that’s likely.”

Kotick’s comments follow Take Two boss Strauss Zelnick’s claim that his company won’t see any “meaningful change” in what it costs to produce next-gen titles.

Activision also noted that a new Call of Duty game is due for 2013 and that development continues on its project with Bungie, Destiny, pictured above. Activision didn’t state which platforms the forthcoming titles were being developed for. You can read more about Destiny and Bungie here in our exclusive studio profile.

Kotick also stated that he was disappointed by the Wii U launch in the investor call.