If my hunch is correct and it is Kurayami he is talking about, it was announced a long time ago. This IGN article was posted in April 2006.

didnt sony announce awhile ago something about paying back some cost to 3rd party exclusives? they will be fine

There's 2 reasons that I think this game is a fully fledged normal game:
1) A PSN game wouldn't be that expensive to cause a super effective financial hit
2) I believe during E3 it was announced that the bigger devs/publishers received the wand dev kits, so Marvelous/Grasshopper would not have access to them at this point

If they think that it might bankrupt them, then they shouldn't do it, unless they're guaranteed by Sony that they won't go under. Otherwise it's best not to make it.

Now SaviorX.....you KNOW that was a ridiculously stupid comment....so if GH is isnt happy with NMH2 sales, you gonna hate Nintendo and Wii??

I seem the recall something about Grasshopper making a Ps3 exclusive months ago. But iirc in that one Capcom was gonna cover the game costs... Was that the same as this?

Oh and Suda and the guy who made RE4? I thought they were gonna team up?

CAPCOM would never do that...they wrre not happy with K7... CAPCOM is all about selling what sells

I would agree it would be grasshopper's fault. I don't understand why these devs must try and show off and make big risks. Small devs should avoid an HD exclusive unless they want to put their head on the chopping block. I can't wait to see how much fail Atelier Roona is and how much it wioll cost gust, a dev whose games don't sell much either.

izaaz - can you provide a link saying the bigger devs have the kits? because as far as I remember sony just said that 3rd party already have the kits and are working for games.

You could make a fully fledged Ps3 game with the same costs it makes a fully fledged wii game.