Im really sad that No more Heroes has such a small budget to begin with and had to go to Wii.
In a perfect world the game would have been made with the same budget as DMC4 and would be on PS360. Its a great game idea full of style but feels unfinished (camera issues, slowdown, graphics are sub par even on the wii).

All in all, that game would have been a million seller with some more polish and ps360 release.

Related to the topic, small developers can make games on xboxlive and psn too...but they would be hard pressed to outsell titles like Ikaruga and Captain Comando remake. So wii is giving them an opportunity as there really isn't much competition from the big boys yet.(other than nintendo).

I'll try to make this short and sweet.

It's all about natural flow:

HD Consoles by push graphical edge, granted they don't have to but people buy them for that purpose.

New developers who don't work in HD on one of these systems could look at a project and go... "I'm not so sure." why? because they see HD games of their genre and the risk is just too high.

By nature these games are relegeted to the garbage can before even realized, due to the misconception that HD gamers bought HD systems to play games in HD.

That may not be true as a majority could have AV or not mind standard def games.

Thiers a lot of factors involved, but all of them are moot by confidence in your product. In Mad Worlds case the game is a result of Capcom not wanting to canibalize their own DMC title more than anything else, so their are many sides to the coin.