Here's something that might interest you guys. In a recent article from OPM about the playstation3 and next-gen consoles in general they spoke to Steven Kent (author of The Ultimate History of Video Games) and Michael Pachter (research analyst at Wedbush Morgan Securities) about the next step for the industry. This is a excerpt from the articles I would like to highlight:
"The average PS1 game took a team of 10 to 12 developers approximately nin e months to complete. The typical PS1 game costs publishers $900,000 to produce. The average PS2 game currently takes a team of 15 to 24 developers approximately 20 months to complete...average cost of $3 million per PS2 game. The higher cost of next-generation console game will make it unlikely that many games will be produced....likely result in the launch year [for PS3] will be the development of three to five games carrying the $8 million price tag [for the producers]...we therefore expect the U.S. publishers to produce only a handful of games for the next-generation consoles, and nothe that if there are few games avaliable, hardware sales will be very slow to materialize."