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all 3 points are arguable if you ask me.
1. it also costs more to finance the game, which may go beyond the scope that a dev is willing to finance a game for.
2. there's no telling whether hardware features would actually be impacted.
3. the 3rd party investment doesn't necessarily mean in goes into 1st party development., and even if it did that depends entirely on whether more 1st party games can actually be made beyond what has been scoped out.