Do you think first/second party support will continue?

[Kantor]

RPG said:
I'm not talking about Singstar though, I'm talking about the games with high production values which one thinks would need 1 million to at last break even ala Uncharted 2.

Are you aware of how much Uncharted sold?

2.5 million. That made a lot of profit. Why would Uncharted 2 (which runs on a modified engine, and so has a lower development cost) sell any less? That's a bad example. Uncharted 2 will be profitable.

Gran Turismo 5's development costs have been pretty much covered by GT5P, the extra 8 million sales they get from GT5 will be pure profit.

God of War III: Should get around 3 million sales, or 120 million in revenue. It did not cost that much to develop.

Next R&C: I can't see that being very expensive at all, and it should reach 2 million sales. 80 million in revenue.

inFamous: I can see that doing 2 million, again, profitable.

So basically, all of the games you listed will be profitable. The only major one which may not be is Heavy Rain.

So first and second party development is not going to slow down or stop. You seem to be greatly overestimating development budgets...Killzone 2 was something like $50 million for four years of development and an engine.