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zero129 said:

Also that more developers would make games for the Wii then the 360/PS3, as Development on the HD consoles would cost too much.

That was when people thought that developers were intelligent, and would do what was necessary to ensure solvency.

Instead, many of them decided to forgo business intelligence in favour of their grand visions, and it resulted in studio collapse in many cases. Other studios are currently in dire straits, for the same reason.