>In my opinion most developers need to step out of the arms race and realise that there is little or no benefit to trying to one up eachother with better graphics and more advanced graphical techniques. Certainly, Konami can afford to spend $70 Million to produce Metal Gear Solid 4 because it is ensured sales to break even but most developers do not have this luxury.
In order to break even with that budget they have to sell around 3.5 million games to break even! That's not a guarantee. And Konami can not afford to just break even on their most important game of the year. They have to make big profits on it.
I don't think the budget will be that high. More in the range of $40 million (still high, but definitely profitable).
I do agree that devs will need to (and probably will) step out of this arms race temporarily, until prices to develop HD games have dropped. If profits on Wii games increase in comparisson with HD games the choice will be easy.
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