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Dgc1808 said:

You're closer with the second but it doesn't mean "dev unfriendliness". The system isn't able to handle high-end PS3 level assets for obvious reasons. With it's screen size, neither does is have to in order to look as good. I can't imagine a dev needing to think very hard to come to:

 "huh... the PSV screen is smaller than my tv... Maybe that character model doesn't need a shirt with textures that good to look nice."

His choices in words were a bit poor but it's pretty clear he's saying that less work needs to go into making PSV assets that will look as good on the Vita screen as it would on a PS3 connected to a HDTV. The "smart" part is about devs not wasting resources making assets bigger and more detailed than they need to be.

Okay, I get it now. I shouldn't have said the word idiot regarding that phrase and should've just asked, so now I see your point.

I'm not sure how cheap it would be, still, and I would not assume PSP dev costs. However I can understand that it would be cheaper than PS3 level costs.

At the same time, cheaper is not too good either, since the PS3 costs are already fairly high. It would need to be much cheaper.

But if all this is true, what about AI, what about all the complex processing that apparently the HD twins could do but the Wi couldn't? Why would players want a sub-par version and would they notice it?