I don't know what you're getting at with your movie comments psrock but they seem to be the complete opposite about your gaming comments.
The Blair Witch Project was a movie which cost (roughly) $30,000 to make and grossed over $100,000,000 in theaters; so in other words, in many ways this movie was exactly like Mario and Sonic at the Olympics in that it was low budget and still had high revenues. Your argument was that publishers would abandon their high budget projects (similar to big budget blockbuster movies) in the face of such high profitability, which from movies (and what we have seen in the videogame industry) seems amazingly unlikely.
You attempt to deflect this argument by pointing out that (for the most part) big budget blockbuster movies are crap ... I've got a peice of information for you, big budget videogames (for the most part) are crap! Mobile Sut Gundam: Crossfire, Turning Point: Fall of Liberty, Lair, Genji: Days of the Blade, and BlackSite: Area 51 all had very large budgets and were all very bad games.
The fact is these big budget games, much like movies, continue to be announced for the PS3 and XBox 360 every day even though they will probably be pretty bad and sell pretty poorly anyways. So how has Mario and Sonic at the Olympics or the Wii in general hurt the big budget games?