I know it's not that simple in reality.
But you're also ignoring that this is big business. Not a small business/one owner kinda deal.
There will be arguments from all over about development costs vs sales numbers. Activision (or whomever is going to front the cost) will want the biggest return, all other factors not withstanding.
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I think the cost of maintaining a mainframe for the last gen consoles will kill the profit that they might make. Plus, people will stop playing on the current consoles if you keep running into the game freezing during big explosions. Makes me so freakin mad.....