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I don't see the problem, to be honest. There are scores of lower price games out there, far more than AAA projects.

Do you mean the big publishers? Some of those do make games at lower price points, like Ubi and Square. Others, like Activision, only produce a few games each year and it's fine if they concentrate on blockbusters.

Blockbusters are the ones that can bring in an enormous profit, which can lead to more games or shelter a company from unexpected losses. Sony once said that it's the big games like Uncharted which fund all the smaller games.