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scottie said:
I disagree that cost of developing games is going to be one of the two big issues. Developers have been making graphically intensive games on the PC for a long time. The reason that early PS3 games were expensive, delayed, and graphically worse than their 360 counterparts is because the PS3 was different to program for due to the cell. The PS4 is powerful, but fairly standard.

1) Analysts Predictions - around the PS3 launch, Sony had 2 successful consoles under it's belt, and the PSP was assumed to be doing fine with just a slow launch. Nintendo was producing a sequel to a 21 million seller and MS was producing a sequel to a 24 million seller. Analysts all assumed that the PS3 would dominate, and that meant that 3rd parties were willing to support it.

Now, Sony has 2 successes and 3 'failures' under their belt (and please don't bite my head off about the term failure, I know that PSP and PS3 have done reasonably well for themselves, and I am sure PSV will do just as well), Nintendo is releasing the sequel to a 100 million selling console, and by PS3 launch time it will be having great hardware sales. MS is releasing the sequel to a ~80 million selling console.

Devs aren't going to rely on Sony until Sony can give them a reason to.

2) Price of hardware. We all know Sony is in deep, deep trouble financially. PS3 is not making them the same easy money that the PS2 was, and the rest of the company is struggling. The gaming division cannot use the "it's alright for us to lose money, we're helping establish blu ray over hd dvd." argument. Sony will not take a huge hit on hardware price this generation like they did last generation. The PS4 will cost a lot for consumers at launch.

The thing is expectation of next gen is that you will not only get a graphics boost but you will get a content boost.  This is the reason that development cost goes up because trying to fill the world with unique assets takes time.  Longer development means higher cost.  Reduce longer development by highering more people increase cost.

As stated on this site many times people are expecting to see their game world increase , with higher order or content, AI, Physics, interaction with that environment.  So just isolating the texturs is not looking at the bigger picture.

As for the pricing of the PS4, I just cannot see Sony absorbing to much on the cost.  Its not like Sony can bleed money until the PS4 starts to make a profit, I believe the console will come out with Sony take a 50 dollar hit where 2 first party games should be able to stem the loss.  The cheapest I see the PS4 selling is 400 - 500.  If Nintendo was taking a lost with the WiiU at a price 349, I just cannot see the PS4 not taking a hit at 400.  Actually Sony probably will be taking a hit at 500.  It will be interesting if Sony goes for broke and take 100 dollar or more hit if they believe they can outpace the nextbox.