Ubisoft: Games to cost $60 million

Ubisoft has predicted that game budgets will cost an average of $60 million in the next console generation.

Chairman Yves Guillemot said that budgets will double from the existing $20-$30 million average of current console titles.

"The next generation is going to be so powerful that playing a game is going to be the equivalent of playing a CGI movie today," he told CNBC.

He also said that it is customers and not manufacturers who are pushing towards the next generation.

"For us, the current machines are very powerful and we can do high-quality work. I'd like to stay with this generation as long as possible, but my customers will want the best machine possible," he said.

Ubisoft is currently working with James Cameron on Avatar, providing assets for the film and making a tie-in game based in the same universe.