Ubisoft chairman and CEO Yves Guillemot predicts the development costs of next-generation top tier games will likely average $60 million, almost twice or triple as much as the production cost of a game for the Xbox 360 or PlayStation 3.
Guillemot says he is excited about Natal, but he suspects consumers may be a bit more impatient than console makers believe.
"[Natal] is one step, but quickly they will take the other step — pushed by the environment," he says. "For us, the current machines are very powerful and we can do high quality work. I'd like to stay with this generation as long as possible, but my customers will want the best machine possible."
One thing that could move up the timetable for console makers is the move to make a gaming system that streams games directly to your TV or computer. OnLive is a company that’s attempting that and showed a working prototype earlier this year. Ubisoft and Electronic Arts have already pledged to support the service.