@ OP - I choose option 3, and a part of a 4th option
The games sell as long as they're of reasonable quality, but the fact that xb360 development is based on Direct X, its easiest to port to from PC development. it takes the hassle off of the programmers this way.
There's always this fight in dev studios:
Team lead - wants to be creative and make something with unique gameplay - pushes for Wii development
Artists - want high end graphics to flex their muscles - push for HD consoles
Programmers - want to get their part done as quickly and accurately as possible - push for 360 development
Audio team - want to use up gigabytes of space for huge soundtracks, need tons of space to store it all - push for PS3 development for Blu Ray storage allotance
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