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HD development costs are extremely high


HD development costs if you want Killzone2 looks. If devs want to make cheaper worse looking games, they can achieve Wii looks on PS360 much cheaper than on Wii (no need to optimize ANYTHING)
Likewise Wii games that look good and have similar features than PS360 games will have much higher costs than a de Blob where you are a blob that colors boxes. If you believe that Super Mario Galaxy was cheaper to develop than Lair you dream.

I mean of course No More Heroes did cost less than GTA4, but it did cost much less than GTA San Andreas as well.