No you should read carefully I said that I KNOW that they are losing money but I know you dont know why.

"That's exactly what 3rd parties have been doing all this time, with the X360 and PS3, and now they're ready. They already had single-threaded engines with the Wii, from the GameCube era, and the revenue from a Wii game wasn't enough to justify even the lessened expense of reusing what they had."

That's bull. If they had ready engines, they should have been making lots of games to take advantage of them, not just one or two that no one cared for. That's how the revenue falls. Not just the single game being mediocre, but not enough other games to build up a brand.

Not every company has the expertise to cheaply and quickly enough develop an engine capable of high graphical standards. I agree that they could manage budgets better, but clearly it's not simple or easy even if Epic makes it look easy. Otherwise EA and the other mammoths would be outsourcing like hell.

As for your latter point, it's not mutually exclusive with the rest.

Not the whole industry is wrong, but a large part of it is. The first rule of business is that you can't continually let your expenses grow faster than your revenue, the gaming business has largely been on the wrong side of this rule for years (even before this generation started). This was causing smaller publishers and developers to be assimilated into EA and other big companies, and now even the big companies are suffering.

We could go very deep, but that about sums up the biggest problem with the industry.

Then why did you ask for proof they were losing money?

About damned time. I was actually worried for awhile that 3rd parties would put there top teams on Wii games. I'm not being sarcastic. I want every big company to start filing bankruptcy come next 2 gens. I want the good old days where development studios were there old publishers. I want innovation, creativity, passion to reign supreme not monotony, repetitive, uninspired to be the standard.

Wii is not the cash cow, it's the investment. With these companies looking to pull out of the investment I'm hoping they suffer. I was hoping they suffered earlier. I'm going to watch the industry burn and rise like a Pheonix as I watch my favorite industry fade away into obscurity.

Most HD games are going to be cheaper the second time around.

I doubt Killzone 3 will cost 60 million dollars since they already have the engine.

MWF2 probably was not very expensive to do compared to COD4

Uncharted 2 was cheap for the way it looks.

/agree

Why is it so impossible to believe that it's the Wii projects that are costing the 3rd parties... you know, like they are stating directly?  Look at the sales of the HUGE numbers of Wii titles that some of the publishers quoted in this thread have put out.  Those games cost $5-7 million on average EACH to make, according to those same publishers previous statements, and our "guess" than HD games cost $20M on average.  If you look at their sales numbers, it doesn't seem like there's any way they could have recovered those funds, especially given that revenue per unit on Wii games is less than that of HD games.

They need to consolidate, and make fewer, better Wii games.  That's exactly what they have stated they are doing.

If your reasoning holds out

Here's to a recovery by the major third parties in the new year

I agree with Trestres to some extent, we wont see any big effort from Western Developers on the Wii this generation, they never were interested in a first place.

Japan well im more positive about, third party support has been really good so far and it will probably continue.

They would have to cancel quite a few projects to "make it happen" this very moment, and that would cost them.  It'll be a good 18-24 months before they can recover from Wii shovelware dumbness, unless they realized their mistake long ago, and only just recently decided to confess it.