I never got the "OMG the budgets are going to double with next gen" thing, anyway. It doesn't make any sense. The jump to HD is what caused most of the jump and that's a non-issue now. As with most industries, time equals money, so reducing the time needed to develop a game should help keep costs from soaring.
Listening to Cerny speak highlights why it's so valuable having a guy who is knowledgeable about both hardware and software development. With him, there is no problem of not understanding where the other side is coming from.








