Caveat: Haven't read all the posts. But my 2 cents in:
Granted that the lower dev costs for some games make them more profitable in the short term - However...
From an "investor" and "big business" stand point:
A big budget game (eg. Million Seller) - has more potential for even bigger revenues (and hopefully profit) down the road. For example, games such as "Assassin's Creed" (as an example only, no actual numbers) - may not have made as much money or only broke even with regards to actual game sales BUT it has the potential for additional future revenue from (1) sequels and (2) other media - such as a possible movie, cartoons, etc.
Therefore, while the 1st game may not have made more than another lower cost game. But you can see that it possibly has more potential in the future. And hence that IP is inherently more valuable than a lower cost game with less potential.
Also, though profit ultimately matters - a bigger revenue IP (eg. $50 million in sales) vs a lower revenue IP (eg. $10 million in sales) is more than likely more interesting to big business because it means that more people (or have more paying customers) like the bigger revenue IP and hence its potential is deemed greater. EVEN though the lower revenue IP may make more dollar in profit.