Ubisoft discusses the ramping up of dev costs with each new generation of consoles
Click Here to View Story
"...what we see is that the end of a cycle is always a time when people are creating bigger and bigger games to differentiate themselves from the competition, and with a new console coming you can really leverage the capacity of the hardware and all the new features that come with the console to bring a new experience to your consumer. So you need to invest less on the size of the those games to still give a great experience. So at the beginning of that generation we won't have an increase - or a very small increase - of the cost of the games that will be launched.
In the mid-term, though, we will use more and more of the functionalities of the consoles so this will increase what we will do with the console and the size of the games. And this will be compensated by the fact we will be able to generate better ARPU, because of the possibilities those games will bring to generate more revenues." - Ubisoft's CEO Yves Guillemot
Check out the full set of comments here