A Look Into Console Games Financials

Gamedaily has an excellent article posted about the financials at work in creating big budget console games; the reason behind a higher price point; and also some theorizing about gamer's spending habits and console transitions.

It's not all rosey, but it's not near as dire as many articles these days.

http://biz.gamedaily.com/industry/advertorial/?id=12089

One thing that I read that I do fully welcome is the use of the PC and handhelds to test the waters with new IP. Being that I recently announced that I'm going to sit tight and not buy an Xbox 360 or PS3 at least until next year on account of the handhelds and PC I own, this is certainly something that I hope comes true. Will it? Time will tell. But with the power of the PSP and uniqueness of the DS, I don't see why not.

One offshoot of risk aversion may be that other platforms -like the PC and Handheld system- become the incubation centers for new intellectual property, because of their inherently lower development costs. Once titles achieve success on these platforms, they can be transitioned over to the more expensive console systems.