Considering the poor quality of modern games and code, it's difficult to imagine that the cost of development is increasing, but it's likely that the value of the dollar is decreasing.
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At least they are keeping up with paying employees as they deserved.
Japan's government has urged companies, mainly locals, to do their part to fight inflation and this also includes Sega.
That being said, it was also expected that Capcom looks o justify landing in the $70 gaming pricing scheme.