I'm not quite sure what I can say here other than 'Yes'. Or rather - to be a bit more precise - to make the same game as you made last generation to a PS4/XBO level of quality will cost more.
The market is straining to accommodate the costs of developing the games the market is demanding; something of a catch-22!
Yes, there is less big studios and games but I don't think they got priced out, they either got screwed by a publisher or the bet the farm on games that didn't sell.
Betting the farm
is getting priced out, because - correct or otherwise - you feel you need to spend that much to compete, but can't afford to fail. Screwed by a publisher
is getting priced out, because they aren't signing up to fund things that they don't feel will make a profit that justifies the opportunity cost.
They're all different ways the budgetary push manifests itself, I would argue.
Risks are still possible but the industry has become sensible in not trying to land on the moon everytime. They've grown up a little and managed to budget an idea rather than mismanagement.
And one of the ways they're doing that is
reducing the scope of what's on offer. It's an option they hadn't explored
that much in the past - but that's exactly what they're trying here.
Don't get me wrong, I'm not trying to paint them as in need of charity - just trying to highlight what I believe are the thought processes that led to this. It may well be woefully incorrect, of course it might. But we're here now, and it's worth exploring how we got here.
Some games have created even more revenue streams and offered less content and still including season passes. How much money do they need to break even or are they laughing all the way to the bank for seeing how far they can push consumers to buy thin on content games with season passes and micro transactions . I would bet on the latter.
Well, no, I'd bet on the latter - because just trying to break even is
really dumb business. It means you're always balancing on a knife-edge.
Can I suggest the following, and this may possibly be tainted by my own perception of things: If there
wasn't a rise in budgets as we entered this generation, why are we
now seeing a particular rise in MP-focussed titles? There were exceptions, of course, one or two last gen that spring to mind, but the ones that are being bandied around in this discussion are rather more high-profile.
I would suggest that it's not a particularly
new idea, but it's being done now because - for now - it may be perceived to be a
necessary idea.