You should listen to what  he says. He gets misquoted often.

He says costs to make the games will increase by 10-15% and publishers will probably not raise the prices.

I wonder what the true average price paid by consumers for games is for the HD consoles?

Just look at it from this perspective:

The costs rise but they sell the games for the same price => they make less money per game than before => they make less profit => since they make less money, the Co./their shares are worth less money => shareholders get angry because they lose money => CEO gets fired by angry shareholders => new CEO pleases shareholders by rising the price of the games.

And they can't increase their income with DLCs and season passes because... well, they are already using them!

It is sad, but this is how things work this days.

i don't know about others, but, i have 48 retail games for my PS3 and my average price is between 20 and 25 euros... example, yesterday i bought, ratchet and clank trilogy for 19,90 euros.

if i had a wii i think my average would be very similar from what i see in on-line stores when i do my research for games...

I hate him when he talks about cost/affordability/"true core gamers" because you just know when he speaks he's rubbing his hands together.

Sounds about right. A lot of PS3 / 360 seems to already have the engine / tech made and ready for next-gen, and just limited by their hardware. I mean look at Battlefield 3 / Skyrim on PC - they're hugely ahead of current gen consoles and are the developers really going to have to 'up' the PC version, or just effectively make games that look like the PC versions on high settings. I've no idea of the nuances but from a technical stand point I don't see a large rise.

However, cost's dont just go up cause the hardware in the box causes them too. There is a 'race to the top' type mindset with top-tier developement that every sequel must outdo the last, every game must be better then the rest and that involves spending more on making the game, marketing the game and ultimately makes them a bigger risk then ever. Much like Hollywood movies everyone wants to have the biggest budget as they think it secures them greater success.

I don't think we'll see prices go up either, for the short term I think the future is things like Call of Duty Elite, FIFA UT, BF3 premium etc. Services that make lots of money after release, and also make revenue streams more spread throughout the year.

BTW I loved the bit where he talked about Ubisoft PC games. Ubisoft hates piracy "Ubisoft told me Assassin's creed sold ~ 1 million on PC, AC2 sold 100k so they delay the PC versions" How stupid is Ubisoft? AC was pirated plenty, AC2 sold like shit because of the delayed release and online only DRM. So much for it working as intended,

Or the days of the 100 euros N64 games. 

For the same price you could buy Superman 64 or half the platinum line of the PS1.

I don't think development costs are going to be as crippling to developers in the 8th gen as some people are predicting