Team Ninja on the small PS3 install base

[HappySqurriel]

A thing a lot of people don't seem to get is that a business case has to be made in order for a game to be made. All business cases basically boil down to

([Cost of Development] + [Marketing Cost]) X (1.0 + [Return on Investment]) < [Expected Return]

Now, how they calculate each of these values is largely dependant on the publisher but your expected return will always be directly related to the size of a userbase of a console. Very few publishers are willing to bet $20 Million on the assumption that 10% of the users will buy a game ...

Certainly, there are some (high profile) developers who basically have the power to choose whatever platform they want but most developers do not have this luxury.