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rocketpig said:

It makes one wonder how sustainable this industry is long-term. It also makes me wonder how many pissed off developers there are in the world with PS3/PSP games in the works right now.

Good point.  Let's look at Konami and SE where with MSG4 and FFXIII.  I expect both games to do very well, and both to make a profit... but... Both series have seen declining returns on sequels, both will be contending with a much lower user base, so at the end of the day, those studios will have to be saying to themselves:

Well we spent $XXm in development and made Xm in profit. However for XXm we could have made 2-4 AAA Wii games and had each make Xm profit which would have been 2-4 times more money in the bank now.