Capcom recently released its Annual Report for 2014, and it included an update on Deep Down, provided by Consumer Games Development Division 2 Department 2 Senior Manager Teruki Miyashita.

The report is titled "Breathing New Life into Next-Generation Consoles with Deep Down," and it includes a rather deep overview of the plans on the publisher for the upcoming PS4 exclusive, first of all talking a bit of history:

We decided that, if we were going to make a new title for PlayStation 4 (PS4), it must be an online game. So we developed a title only Capcom can offer that makes the most of the PS4 advanced functionality. This is how the development of all-new title “deep down” got started.

Bringing the world of this new game to life requires a major effort involving the continued online provision of full high definition graphics and game elements. To accomplish this, we overhauled our game engine to ensure developmental quality and efficiency. Despite the difficulties involved, we took on the development of “deep down” at the same time as we developed the “Panta Rhei” game engine customized for next-generation consoles.

We also improved our development structure. For many years, consumer games were developed in Osaka and online games were developed and managed in Tokyo. As

Creating a Game and an Organization “deep down” Making full use of all PS4 functions, we are attempting to create a new world drawing on ideas and technology to provide users with a fresh sense of excitement and fun.

“deep down” is a “reading” RPG where players are ordered to dive into a past world “dungeon” where they use memories to solve riddles. Not only have we created rich story development, we upgraded the online functionality of the content and enhanced the matching function enabling players to explore and have adventures with other players they don’t know. The automatic genesis of the “deep down” was the first online game developed for the PS4, it was necessary to integrate the game development and management functions. The Osaka and Tokyo development staff, along with the engine developers, have forged a stronger bond and united their capabilities to create “deep down”.

Then Miyashita-san gives an update on development, and on the visuals we can expect:

Making full use of all PS4 functions, we are attempting to create a new world drawing on ideas and technology to provide users with a fresh sense of excitement and fun.

“deep down” is a “reading” RPG where players are ordered to dive into a past world “dungeon” where they use memories to solve riddles. Not only have we created rich story development, we upgraded the online functionality of the content and enhanced the matching function enabling players to explore and have adventures with other players they don’t know. The automatic genesis of the dungeon and endless variation are just some of the appealing aspects of this game.

“deep down” was the first online game developed for the PS4, it was necessary to integrate the game development and management functions. The Osaka and Tokyo development staff, along with the engine developers, have forged a stronger bond and united their capabilities to create “deep down”.

We also put a lot of effort into the visuals and production elements. The texture and rust of the player’s armor, the flames shooting out of the dragon’s mouth, even the way light is reflected are all rendered in a strikingly realistic fashion. Using “Panta Rhei” to create this title gives it the highest quality graphics of any PS4 game. We used a variety of production elements to enable players to slip right into the game world. This is a quality release that will make players say “ Wow! Capcom pulled out all the stops ”!

Finally, we get an overview of the strategy planned by the publisher to push the game at and after release:

Crammed full of new game elements, we want users to enjoy and play “deep down” for a long time, first as a free to play (F2P) game, then as a premium game. To achieve this, we must continue to satisfy users. In other words, the challenge really starts after the game is released, so we must be ready with planned surprises and updates.

Fortunately, we received awards in the Future Division at the Japan Game Awards 2013, while Facebook and Twitter have helped us get advance publicity in online news. At present, we are proceeding with development at a fevered pitch ahead of the official launch of services. F2P “deep down” for PS4 is the litmus test for Capcom’s new business model.

We are making an effort with respect to “deep down” so that users will want to play this game, and after release, we will continue to make an effort through addition content aimed at keeping users interested in the game, and ultimately, creating a hit title.

Speaking about graphics, we also get breief mention on how the fire and water effects were created:

Flame and water animation are depicted as calculated particles rather than processed images, resulting in highly detailed beauty reminiscent of a photograph.

Looks like Capcom is putting a lot of weight on Deep Down, and it's actually quite interesting to hear that they're trying to entice people to enjoy it as a "premium game." So far we only heard about the free to play business model, but the wording could suggest some kind of subscription or season pass in order to enjoy the full contents, even if it could just mean the purchase of in-game items.

Below you can also see two pictures of the development team (including Miyashita-san himself), that give us a quick glimpse on the game as well: