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matt247 said:
Does smaller teams mean that they work on multiple arcade/casual games,

Doesn't mean anything really, apparently its made up of 50+ people, Remedy (Alan Wake) is 40+ people, Media Molecule (LittleBigPlanet) was a team of 30+ people, though they might be working in a "casual" title, I would say that if they've been working on it for 1 year, it's probably not a downloadable title, but most likely retail.