Capcom may have finished 2012 in the black, but it expects to be spending more money in the very near future. As a supplement to its recently released financial figures, Capcom stated that it expects a significant rise in the costs of developing games for the PlayStation 4 and the next-generation Xbox.
The company attributes the projected increase in operating expenses to significant advances in new technology. Capcom said "development costs are projected to soar as advanced and multiple functions are added to hardware."
In order to curb the anticipated costs, Capcom plans to move more of its development efforts in-house. It expects that this will streamline the process and effectively shorten the development cycle, which, in turn, will cut costs.