You know that tech gets cheaper as time goes on, and that at a very fast rate. Just because the graphics will be improved doesn't mean that the games have to cost more.
Huh? Game development costs rise with each new gen.
But then again, there is this PR line in the UE4 leak:
"It will streamline game development, allowing studios to do in 12 months what can take two years or more today."
But taking Epic's past lies and hyperbolic statements into consideration I'll take that with a massive grain of salt until I can see how true it is.