I'm not saying it's not a lot of money. I'm saying that when you're asking Nintendo to start running with the big guys, $200 million is the cost of 3 games in the AAA arena. That's a lot of risk for a company that is generally risk averse. Keep in mind that not only will Nintendo's development costs skyrocket (and their profits from said games on a per unit scale) plummet, you think they're going to be able to get away with releasing games and not dropping the prices of them for years to come they way they do now? Hell no. So not only do their profits dwindle, the amount of shelf life they can hope to get out of a game dwindles as well.
Most people argue that Nintendo would make up in volume what they lose in margin, and I don't buy it. There have been a number of "Nintendo-esque" games released on Sony and Microsoft's platforms and they just don't sell.
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