Or Up?

This is from EA meeting today (Bolded what probably is relevant):

"They have never been more prepaired or ready for a new console launch
Giant leap for the industry, every step and function. "Between 8 & 10 times the power of current generation."
Not limited to current generation "1080p, 60 fps, camera IQ"
All of internal software will work flawlessly.
What used to take months will now "take days" to do.
Seeing new ways to approach current IP's and new IP's.
The ability to have cross platform play, will open up new consumer base.
EA has slimmed down their lineup from 85 games to 15 core titles
Allows stream lining the backbone of game creation
Sony and Microsoft in-line for their transition will reduce cost of production
5% to 10% increase in cost of production on current games.
No pricing on retail games set, but you may see a trend of "$69.99" at start and dropping down to $59.99 similar to the beginning of the current generation.
Saving time and money in comparison to the roadmap they set up last year.
Data collected on gamers through created technology and algorithms allow them to engage the players.
Gross margin as gone from 55% in 2010 to 55-65% range currently.
Due to the transition into the digital world from boxed gaming.
Discussed the progression and advantage of the PS4 in regards to downloading games
Many more opportunities in "always on" connected gaming
The focus is always focused on the "consumer experience"
Discussion of margins in regards to digital expansion packs and the margins it drives
Doing so builds an actual community, and overall over time, more profitability
Building into all games micro-transaction: "Consumers are enjoying and embracing that way of the business"
Over $25 Million revenue in micro-transactions alone last quarter.
Much has been learned on infrastructure in regards to the failed iOs launch of the Simpsons.
Absence at PS4 reveal is not indicative to their status on the console.
Between now and E3 you will see a lot of stuff from EA
Thrilled with the PS4 specs - the new Battlefield is stunning"

Add to that what Take Two said recently about next gen cost going down.

What do you guys think and why!?

Sony and Microsoft in-line for their transition will reduce cost of production
5% to 10% increase in cost of production on current games.

Do those two sentences contradict themselves?

For average games, cost will go down as they won't even need to optimize anymore to get a decent game running. For AAA games, costs will rise slightly, mostly art and assets.

Will it go up for games that use the hardware? 

Yes

Will it be as big as the jump to HD from last gen?

Probably not.

That's why I have question marks all over. Could he be saying that, for example, the new battlefield will only cost 10% more to make 2 extra versions for PS4,NextBox (in addition to pc, 360, ps3)?

In other words:

PS3, 360, PC versions cost 100 dollars to make 

PS3, 360, PC, PS4 and 720 versions will cost 110 dollars (10% increase).

"EA has slimmed down their lineup from 85 games to 15 core titles"
oh oh

"5% to 10% increase in cost of production on current games."

Not that much though.

Will costs have a big jump from current to next gen?

No

Will graphics have a big jump from current to next gen?

Yes

In order to create more art assets owing to the games becoming more and more detailed, you need to hire more artists. That is likely made up for by being able to reduce staff needed in other areas of development, such as engine optimization, etc.

A lot of that is just getting rid of licensed games like Harry Potter, etc.  Most of that 85 number was shovelware that they can now produce more cheaply for iOS/ Android and not have to make for consoles where sales for licensed games have been sour for years now.