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Mystro-Sama said:
Yet most games on the new generation of consoles sold very well and brought in profit despite launch being the hardest time to sell games.

I think AAA being too risky is a BS excuse. Once there is a reasonable install base, proper marketing, appropriately managed development, and a quality game then publishers will see profit. Look at Dark Souls.
Not everyone can be Rockstar and afford to develop a game for half a decade.

First off, all of the games out for the PS4 are pretty much only at the break even point if that.  Sporting games being the obvious exception which sell like crazy every year and cost shit to make.  I may even be under-rating the development costs, I seem to recall the break even point for a triple A game being at least a million copies sold.  

Secondly, how many studios have to shut down before you are willing to admit that triple A development is ruining the industry.  Do you wanna play the games for the graphics or the gameplay because the higher the graphics go, the lower and crappier the gameplay gets.  Going all in on graphics works for the short term, until people realize the graphics aren't really any fun.  After a few games suddenly graphics become less and less important and the person loses interest in gaming.  

Thirdly, Irrational games is owned by the same company Rockstar is owned by.  They did develop for half a decade and still decided it was safer to go indie.