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While he doesn't really mention Xbox Live, Wii Ware, or the Playstation Network, I'm thinking he's talking about developing bigger games.

I think he has a point in that with the PS3 and 360 requiring more money to develop games on. Not only that, this week the development cost of Sins of a Solar Empire is said to be around or under a million, and it's a good game.

That's where I see it.