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It does make sense, from a business standpoint.

I mean, by the time the game is ready for release, the Wii will be at just about 50% of the market. So, theoretically, a game released on just Wii would sell the same amount as a game released on the PS360.

And from a company standpoint, would you rather sell 5 mil copies of a AAA game that cost 20 mil to make or 5 mil copies of a game that cost you 40 - 50 mil to make?