@BKK2
Finally corroboration of what I have said on these forums repeatedly for months. I read a similar article well over a year ago. That actually cited PS3 game development costs. Where a developer actually cited their average game development costs per platform. They cited the PS3 at three quarters of a million for break even, but then again unlike Sony they were probably not including marketing and dividends into their estimate. So yes if it is costing third party developers this much then it probably costs Sony that much.
This is most definitely not the high end average. The high break even points could very well be three or even four million sold. Anyway it is nice to see some independent verification, because quite frankly a lot of posters simply refuse to believe that the games can simply cost that much to make. This is part of the why the PS3 had a terrible first year on the market. Developers generally couldn't afford to eat these kind of losses. When the break even point on the 360 was under half a million, and the Wii was around a quarter million.