Yes, it'll flop if they give it a AAA budget and expect it to sell several million copies.  Every type of game can suceed if realistic expectations are put into context and an appropriate budget is set relative to those expectations.  There are plenty of platforming games made by Indie studios that have done very well financially (ie, Spelunky, Guacamelee, etc) without having to sell millions of copies.  There's no reason why a game like Spyro can't work if given to the right studio and Activision is realistic with its sales forecast.  That's why a game like RE6, that sold 5+ million copies, was viewed as a disappointment financially because Capcom forcasted it to sell 7 million copies.  Meanwhile, P4G was a financially hit for Atlus as it far exceeded the studio's expectations of 500K copies sold.  

Maybe not, but she can still easily point him out. She calls him "dragon".

I have yet to buy any Skylander or Disney Infinity starter sets, but she likes the Skylander stuff because is has dragons.

It could still have dragons without Spyro.

Your daughter and everybody else would still have the same fun if Spyro wasn't there.

You are right about Spyro and Crash being dead though. They will remain dead until they are returned to Sony

Spyro as a franchise is not worth the investment, especially at this point in time. It is just a waste of money.

You might disagree, that is fine, but this just how I feel. Spyro, alone, as a franchise is dead.

That's fine.  I happen to think that Spyro is one of those old school franchises where you can give $50,000 to an up and coming Indie studio and say see what you can do with it.  At worse, you lose 50K, which is pocket change for a company like Activision.  It's a low-risk, potentially high-reward investment.  I can see it finding success as a mobile device game or a 3DS/Vita game.  I envision a new Spyro game similar in vain to Rayman, which is another old-school platforming franchise and has continue to find success both commercially and critically.   

Yes, but "Spyro" is a name. 

It is a name Children can cling on to.

Something looks like this...

It's Spyro.

It builds upon those children. 

The greatest thing that has ever come from Spyro was Skylanders.

Yea and that is what will happen when/if it returned to Sony.

It would still be that easy name kids could cling onto.

From my understanding, Skylanders isn't really about Spyro. 

Activision could keep that new design of Spyro. So these new kids really dont know what the REAL Spyro looks like

None of these kids would be crying if Spyro was removed and replaced with a new dragon

$50 thousand?

Don't expect anything on the level of Rayman Origiins. That was all handrawn art. That doesn't come cheap.

That is like expecting a Vanillaware title to only cost $50,000 to develop.

$50K is an arbitrary number.  My point is it doesn't need to have a AAA budget.  Anyway, we'll just agree to disagree.   I know this won't happen, but I would love for them to do a Kickstarter for a proper Spyro sequel just to gauge interest.  I know I would definitely support it as a huge Spyro fan growing up, but it'll also be interesting to see how many Spyro fans like me are still out there.