I really think that the biggest problem this generation has is the cost of entry. A record number of people had PS2's which made it easy to push any shovelware and get great results. Now we're finding the the Xbox 360 and PS3 haven't hit enough people to make an okay game work. The blockbusters sell well enough to get a good profit and everything thrown at the Wii has sold well so far. Unfortunately many game developers are using that to justify we'll put our cheap projects on the Wii and our big projects on the PS3/Xbox360. However, I believe that once the PS3 and Xbox 360 hit market price (if they get there), you'll see that most developers will be able to make decent profits on the games they produce as the base of individuals will be enough to reward them.
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