In regards to the Wii, I don't quite see how not pushing hardware specs equates to "helping third parties to make lower cost games." It's not like it's any easier to make a cheap game on the Wii than it is on another platform.
I think I agree with Bod on this one. Developers don't HAVE to use a console's capabilities to the fullest. A developer could easily make a relatively cheap ps3/360 game by focusing more on fun factor rather than flashy visuals, complex interactions, etc. Like he said, developers should stop focusing on pushing the tech envelope if they want to make cheaper games.
Also, Sony wasn't out to "Screw" third parties when they created the Cell. Sony has always created crazy hardware for it's consoles, but they've always had a rather friendly attitude towards third parties, hence why the ps1 became such a success.
Also, I think it was 1st/2nd parties and prices drops that saved Sony last year more than anything else. Uncharted was easily the best game on the system last Fall, and arguably still is.
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