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obviously the bigger the development house is the more money it takes to make a game so the more money they need on their return.
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I dont' follow the obviousness of this comment. One of the main advantages of being large is that the sundry costs of game development, which can often be insurmountable for indie shops, are essentially absorbed into the noise of general operations. In addition, groups with enough breadth can leverage assets / titles / technology across multiple games / platforms with greater ease, allowing them to produce more for less. "That new game engine you just made? Well, we can use that in 12 other games this year alone."
Now, I do agree that the larger the house, the more money they need to make overall, but that just means they need to pump out more (see EA).
Unfortunately, while I disagree with this, I can see the rationale, as both the movie and gaming industries have fallen into this thought process where the only way to compete is to make a buster that breaks all previous blocks.
Jam it back in, in the dark.
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