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We've been hearing the "AAA developers will stop making expensive games" for 10 years now.

Wasn't the Wii supposed to get all these incredible awesome games because it was cheaper to program for? Then Wii U? Weren't developers going to bail on HD games in favor of SD games? 

None of this happened. What's happened is if anything Nintendo's developer base has eroded and many Japanese developers have chosen to abandon DS/3DS development in favor of smartphone development.

Look at companies like Square-Enix and Capcom, they support the smartphone more than the DS/3DS.

Meanwhile Sony still has basically all the same developer support that they've always had, in fact the PS4 has tons of mid-budget and small budget/indie games too because developers, more than the PS3 even. Why? Because they use x86 and low budget developers can easily make a game for PC and then have a PS4 and XB1 version of the same game so they are flocking to the PS4 in particular.