Very very few people tend to own both consoles. Most people tend to only own 1 console per generation. Sure early adopters tend to be the more hardcore gamers. But i'd be surprised still if enough people owned both consoles to effect sales in any large number.

I'd also say most multi-console owners likely get their second console after it has breached or come very close to the "magic" 200 dollar price point.

Though this is just a guess.  It does seem likely however.

I would really like to see how much it costs to produce this game.

We can toss hypotheticals back and forth until the cows come home. We need solid statistics if we're to come to any conclusions here.

Does anyone have a source illustrating the cost of development, publishing & Advertising?

Someone barked out the claim that third party developers make about $7 off of each copy sold. It would be nice to see some evidence coroborating this claim as well, but assuming its true...

1m units sold = $7,000,000
2m units sold = $14,000,000
3m units sold = $21,000,000
4m units sold = $28,000,000
5m units sold = $35,000,000
6m units sold = $42,000,000

Now even if DMC4 does break even or make a profit, the real question is whether or not it is a worthwhile profit to justify such a project. For Example...

If the Game hypothetically cost $5,000,000 and made $8,500,000 then there is a profit of $3,500,000. Sure, that's a profit, but was it worth the risk? Is taking two steps back and three steps forward really that sound an approach or a comfortable strategy for the developer? I'm sure it would be appreciable to see the game at least return the amount initially spent on it or a greater sum.

I would like to see some solid sources giving us the details on this game before anyone jumps to such conclusions.

From a business perspective that is already a very good profit. Basically any profit for your investments that exceeds ~10% is ok, and profit of >50% is phenomenal. What you need to remember is that the costs already include everything from wages to taxes so any profit is just that - pure profit. As long as the profit exceeds the current inflation ratio the developers should be satisfied since they have already been paid and even people investing in the games company should be happy with enough profit to pay dividend.

The console maker is the one that makes 7 dollars IE: Sony, MS, Nintendo. I Am looking for breakdown but I believe after all is said and done the company gets about 20-30 dollars per game. Which is the reason why most companies look at the 1 million marker as being to what they need to sell on big budget games.