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Bull! PC games are pretty solid evidence that high end hardware won't kill developers. In my opinion it's actually the opposite. Let's take Uncharted 3 for example. Why does it look so much better than Uncharted 1? Obviously it is optimized for the hardware. I've done my fair share of game developing and trust me when I say it's not that hard to make something look great. What is hard is getting it to run at more than one frame a second. HD games cost so much today because the hardware is being pushed way beyond its normal limits. With much stronger hardware it will actually be cheaper to make games on par with today's graphics. Only later in the generation would optimization again become an issue. In my opinion it's much better to do that instead of releasing Wii U powered consoles that without optimization are only as good as today's graphics.