Honestly, I'm wondering whether we're going to start to see a massive feedback loop which could (effectively) "Kill Off" the HD consoles ...
The success of the Wii should justify at least equal investment in Wii games as compared to HD games, but the Wii's lower development cost and shorter developmet cycle should translate into many more games being released off of the same investment; to a certain extent we have started to see this from the higher number of announced games for the Wii as compared to the XBox 360 and PS3 over the same timeframe. As the Wii starts to have a more constant release schedule of "quality" games its library will look more attractive to consumers than the PS3 or XBox 360's library which should translate to higher sales. As the sales grow it becomes more likely that investment in Wii development will become greater than HD game development, which will turn into the release schedule favouring the Wii on a more disproportionate level, which will push Wii sales further.
At this point in time it is impossible to see whether this is happening or not, but if the industry plays out this way in 2010/2011 the Wii could have a release schedule like the PS2 had in 2005 while the PS3 and XBox 360 could have a release schedule like the XBox and Gamecube in 2005.
