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BMaker11 said:

It then becomes a domino effect. People aren't buying the games on the Wii, they are on the HD consoles. Devs put more big games on the HD consoles, and those gamers buy said games. Because they buy the games, the devs put them on the HD consoles. The cycle then just leaves the Wii out of the picture

 

 

It usn't quite as clear as you think. In the days of the PS-2 most hardcore and most casualk gamers were on the PS-2. So when a good hardcore game with an impressive game idea or good graphics became available hardcore gamers and even some casual gamers bought it.

Now you hzave most casuals on the Wii, but its customers are not all new customers but even a lot of casual gamers from the PS-2, while the XBox 360 and PS-3 are mainly targeted at hardcore gamers (although you can guess that since the last price cut of the Xbox360 its Arcade SKU seems to catch casual gamers too. If this is the cas the PS-3 is in trouble (it might need a price cut to 250$ to attract the same audience!)). In general even the old plattforms had more casual gamers than hardcore gamers but you simply didn't saw the difference. And at the same time the HD games are more expensive simply because their plattforms and capabilities are more complex and offer new capabilities and the graphics need more work, yo you have less customer for games that are more expensive to develop. But at least they offer one advantage compared to the last generation, they can be developped on the same gneral code base and you can try to hide the differences behind special libraries and workflows, while there is no possibility to port to the Wii in the same manner.

But if you look at the number of sold Wii there is a strong incentive to gevelop an independent code base  that can reuse parts of the general multiplattform code. At the same time there is avery strong incentive to make the HD Development cheaper which would mean a very general code base to lower development costs and test time and a general reuse of graphical elements and animations.