The "because of HD graphics" is pretty vague statement. Gears 2 cost $10M to develop. Lots of people claim it has some of the X360's best graphics.
Almost every Wii game in existance probably derived from a pre-existing GameCube engine, since the architectures are next to identical, outside of clock -- so how did Gears 2 get so cheap, when its not HD?
Which HD games were on their first HD engine architecture iteration, when you choose to quote their costs?