Are third parties morons or are their actions deliberate?

[Final-Fan]

Squilliam said:

Final-Fan said:

Squilliam said:

Final-Fan said:
Even if I grant all the stuff you said, Squilliam, I don't see it making a 37% difference into a 300% difference like you suggest. 

blah blah blah

Look, I could argue a lot of that stuff, but what I'm focusing on right now is that you're saying that it magnifies the difference in profit per unit by OVER EIGHT TIMES.  You are really confident this is the case? 

Nope. Im figuring total number of units on the Xbox 360 and PS3 for third parties are about equal each with the Wii, so the overall market on the DX9 consoles are around double the 3rd party market share on the Wii. From there I consider that the average cycle for a lot of games is very short so that limits packaging, warehouse and production costs by doing large runs and the average sale price is higher. So I figure they must make at least 50% more per unit of a DX9 console sold than they do for the Wii. Hence my maths, 200% * 150% = 300%.

You initially said that third parties got $32 on Wii games and $44 on PS3/360, 37% greater.  At this point I'd like some kind of source, at least to show that it doesn't already figure in the DLC you refer to that is letting you speculate a bump to 50%.  (Mind you, this would be AVERAGE; many many titles have no DLC at all; the more I consider this the more I wonder if you aren't seriously overestimating this.) 

And am I to understand that you are backing down from the "or 400%" part then? 

Also, what are you basing this figure of PS3 and 360 together being double Wii with respect to third party market? 

Lastly:  Do you realize you are not factoring in cost of development?  It is well known that more HD means more money to make.  And this also applies, I believe, to games heavy on cinematics which are also more prevalent on those consoles. 

P.S.  Also, at the level of a particular studio, it takes more time to make such a game IIRC so they make fewer games over time.