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Kyros said:
Tell that to Majesco ...


I just looked it up and Majesco canceled half of its products, released others like Advent Rising prematurely which resulted in bad reviews and a bad game and had a big flop with Psychonauts. And to be sorry many people seem to think this is one of the best games ever but it didn't need a clairvoyant to see this sell badly. It was too weird and artistic which made it a niche title from the beginning (Okami hello). So all in all I would say the people to blame were the product managers and its a good example that products could run out of control in the SD console gen also.

 

I agree with what you said, but you're saying something quite a bit different than what you initially claimed. It is not companies that are producing "Good" games that are profitable, it is companies that are producing well known properties in popular genres that are profitable; there is quite a large difference being that many good games simply can not have their development budget justified because they're too risky being that they're not an established franchise and are not in a (particuarly) popular genre.

As an example, Capcom can justify developing a game like Zack and Wiki even though its overall sales potential is not that great because is development costs are low enough that it doesn't require high sales to break even, and even if it doesn't turn a profit it won't lose so much money to (really) impact their bottom line. To produce a similar game with a visual quality appropriate for a HD console would simply be too expensive to justify.