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Next generation development costs won't go up in the first two years, says Ubisoft CEO

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Next generation game development costs likely won't go up for at least the first two years, Ubisoft CEO Yves Guillemot said during the company's earnings conference call today.

"In the first two years, we expect the costs will not increase compared to what we have today in creating the games we launch," he said. "We don't know about the third year where we take full capacity of those consoles, we probably will have to spend more money at that time."

Guillemot went on to say that revenue per game will likely increase per customer, and that product revenue will increase because the life span of next-gen games will be higher.

Ubisoft expects the Wii U to do well this holiday season and continue to be a driving force through the industry as more next-generation consoles are introduced.

"[The Wii U] will be a machine that will help the industry next year," Guillemot said. "For the other machines it depends when they come. As they market has been waiting for along time, we expect they will have a big boost."

He added that he expects both the next iteration of the Xbox and PlayStation will do well when they hit because "the market has been waiting for a long time."