In recent press talks both EA and Capcom discussed the size of their budget for Next-Gen games. Capcom explains that how much the budget for their games have gotten bigger, to the point where they might need to “consolidate and prioritize” again in order to get some of their projects finished.
Even though a full lineup of new home video game consoles will eventually be released, the industry is likely to be in a period of scant new product releases over the near future, awaiting the full-scale launch of the next-generation machines. In the meantime, development costs are projected to soar as advanced and multiple functions are added to hardware. Business alliances and consolidations may therefore occur in increasing numbers.
Meanwhile EA’s budget remain consistent for their games.
As we enter a new fiscal year, EA is well-positioned for dynamic growth on next generation consoles, PCs, and mobile platforms. With world-class games, a rapidly growing digital business, and top-notch creative talent, we are excited about EA’s strategy for FY 2014 and beyond.
EA has a solid operating plan with disciplined R&D spending and a sharp focus on delivering the best games and services. We are holding our FY 2014 operating expenses flat to the prior year – a significant achievement in a console transition year.
This is some worrisome news from Capcom, as reviving great franchises now seems less likely than ever before. What are your thoughts on the financial situation of these gaming giants?