I think that article title is a bit deceiving simply because budgets can vary so much between any two games. While costs are definitely a lot higher now than in the last generation, I think there are ways to keep them from spiraling out of control like some people fear. The biggest thing developers will have to do be diligent about is recycling game engines. These days I don't think you can just build a single full game from the ground up and plan on keeping a tight budget. You have to either pick an engine off the shelf like the Unreal Engine, or when you're building a game, you have to have plans for sequels and build your engine so that it is versatile enough for use in other unrelated potential titles. Also, the more and more familiar devs become with the hardware the less manpower they'll need to pull off a game. So I don't think we have to worry too much.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
