Originally Posted by Wolfie708
Almost right except the last bit. If Sony get less money then they invest less money for the next game, and the next, and the next.
Simple financial down spiral, plus your example is based on Sony making a calculated guess at how well a game will sell and allotting a fixed development fee. This is not always the case and some game developers are actually paid more on a royalty based system (all things are to be honest) so either way the devs lose out. It's just a case of when.
Of course Sony and Microsoft and to a less extent Nintendo have the game devs by the b***s cause if Sony and Microsoft quit PS3 & Xbox the devs will go bankrupt but sony and microsoft will be fine with there other stuff.