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Kyros said:
It is quite possible that both these games were in the $1 to $2 Million range to develop,


I doubt it at least for No more heros. Cell shaded games are not inherently cheaper. You have to get the art style right as well and its much harder to do the models right. Besides PS360 games have the advantage of being at least 10$ more expensive which is an even bigger part when you substract overhead like production costs, shipping, sales etc.

Cell Shading is not necessarily less expensive than conventional rendering, but I personally think that it was used in No More Heroes and Killer7 because it can be used to hide the fact that there has been less texture work done ... I could be wrong, but being that Grasshopper continues to find publishers when they have never produced a game that has sold (particularly) well implies that they make inexpensive games.