Development cost only rises at the beginning of a new generation, since you are unfamiliar with new hardware and all development tools and middleware programs are not completely finished yet and leave a lot room for improvement.
My prediction is that (multiplatform) development costs in this generation will eventually be not much higher than in the last generation. Higher resolution, polygon counts and effect complexity means more art design work to be done at first but because PS4 and 360 are nearly identical in hardware (both use a PC x64 AMD APU with mostly the same features) developers will save a lot of time and effort. And as the middleware programs and game engines improve over time, more and more tasks will be automated to save time and money.
Cost can also be reduced by outsourcing a part of the work to counties like China or India which is already done by most big companies.
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