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There is nothing quoted that is unreasonable. I think the hyperbole is in the imagination of the reader. You read something then imagine it in the extreme. Everyone pleads with someone else for something that does mean we demean ourselves. Like wise developers are not going to jump into Wii production to put out a AAA game the system is still too new, and the demographic is poorly understood. However you can't go too wrong on a low budget title with a short development cycle.

Sony obviously has to plead their case to developers. No they are not crawling on their knees, or crying over phones. More along the lines of just asking in a heart felt manner for a little more time, or asking for announcements to be deferred for a month or two. Kissing some serious booty, and bringing up tragedy. The way that many apologists on these very forums whip out those famous slogans. I would find it hard to imagine that Sony is not saying the exact same things to developers each week. Hold in there till next spring things will look much better.

Absolutely you can break one PS3 team into four or five teams. Some of these high end AAA games can have massive staffs working on them. However if your willing to make a handful of B games for the Wii it can be done. Perhaps if you feel the platform is worth it you could push out two AAA games with the same resources. Obviously if you decided to do two B games on the PS3 you could probably split a AAA staff into two with little problem.

The reality is though that for the PS3 you want to use the hardware to its best ability, and that should mean fantastic looking games that have a lot of data to make the best use of the machines strengths. Few developers are thinking they want to develop a Wii quality game for the PS3. The consumer would expect better, and quite frankly it would defeat the purpose of developing for the platform if your not looking to push boundaries.