[quote name='M-PG71C']To back up Strell, anyone remember Free Radical? You know, the people behind Timesplitters? It only took one bomb on an HD console (Haze) and out the door they went as well. A lot of people hate on the Wii, but there is as much risk on a HD console as the Wii itself, if not more so.
This generation wiped out a crap load of studios, all who mainly saw death on the HD consoles. Makes sense though, there is a bigger investment in development on those consoles and if the game bombs, you're sunk.
Hell, if I was a studio, I rather take risk with a M rated property on the Wii versus the HD twins. The "death rate" is much smaller and with development costs being lower, I have more of a chance to make profit on it. Madworld and HOTD Overkill may have only sold 500K roughly, but I am willing to bet both studios walked away with a solid profit. And both of those games are niche products to begin with.[/QUOTE]
I'm pretty sure Free Radical got bought out before they could go under. Also they had a problem in that nobody wanted to publish their games like Time Splitters 4.
I think we should get away from the idea that one game toppled a company and focus on the fact that the increased costs of HD development are a significant factor in all of the closings that have happened as well as the downturn in profits for a lot of companies.
Is there really more risk with HD games?
It all depends on what kind of game you are making and how much it costs to make it. However, in general I would say yes. Besides increased costs per game the HD consumer has been conditioned to expect gigantic blockbuster type games with enormous production values which cost enormous amounts of money to make, and if your game doesn't deliver there's a good chance that no one will buy it. This is evidenced by the fact that games that don't meet the blockbuster status are quickly derided by HD gamers as only being worth $10 as a downloadable game. This happens a lot with 2D games.
Even game companies realize this as EA is shopping around the idea of a PS360 Dead Space Extraction port for $15. They know HD gamers would never buy that game at full price since it clearly lacks the effort, depth, features and production values HD consumers expect in their games. (it's also a good example of how 3rd parties perceive and have treated Wii consumers all this time)