Developers are complaining that costs will increase on next gen. As PS4 and One won't have DRM anymore, the solution to keep publishers working on more expensive AAA games on this gen and keep their profit would be simply to increase the price of physical media.

$70 for physical media and $60 for digital version of the same game, for example.

I think it would be fair, because it has been said the average cost of an AAA game will increase between 15%, nothing more natural than increasing the price of the phisical version at least in 15%. But only the future will tell us what will happen, if publishers feel like their costs increased and profits decreased, there will be no other option and the price of games will be adjusted to compensate the costs.

Actually if they decreased prices more people would buy their games.

Also didn't EPIC say that Unreal Engine 4 was meant to keep costs the same or less cause it is a more streamlined tool?

Screwing the consumer with a $70 game which has $30 more DLC on disc? Oh yay, can't wait for that!
Make your development cheaper. The industry will implode otherwise.

It won't happen, if everybody followed this idea would be cool: lets decrease the price of all kind of products to allow more people to buy stuff. But unfortunately, the market doesn't work like this, including the gaming market.

Cliff stated that the costs will increase at least by 15%.

Prices don't need to increase, developers need to spend less money.

it is just the patch of AAA budget games, they will need more people and more time to work on a game each gen.

They are already offsetting their costs though via:

1. LImited editions with cheap plastic toys, books etc..

2. Downloadable content

3. Australia

They only "need" more money if they plan to continue this gen's habit of overspending. Games don't need to cost $100 gazillion to be high quality and successful.

So damn true. $100 for a new game, it's ridiculous.

haha jsut wait for the dollar to get to 80cents, it will go back up to $120 lol.