This is what the AAA model does. Every game can't sell 5 million copies. Most games aren't likely to break 100k. Even if you have a mature IP, a great development team and great marketers it's still just a high profile risk.
When you have that much money going into a single title and you are without the means to diversify your output it only takes 1 or 2 failures before your team is done for. This is probably why Sony has been able to manage PS+. Developers and Publishers are starving for more income in some cases only 6 months after the game has been released.
We are going to see far more developrs go digital only. You simply make way better margins and marketing is cheaper. In most online markets developers themselves can get 70% of the sale price. They get not even 20% of the price of a retail title.
I hope console makers are making their platforms very enticing for digital cause I know iOS and android offer 70%. Not so sure about PSN, XBL, EShop. I know SE doesn't seem to care to put their mobile stuff on PSN.
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