When do developers target the next-generation?

Silenti

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As a developer, how do you decide which platform to target a game for? It's nice to say "whichever has the largest install base applicable to the game type" but that obviously isn't always the case. Any non PC Port (Oblivion for instance) either straddles the 2 generations and gets launched n the new machine (the sub par next gen launch title - PD0) or is redesigned/designed from the ground up to meet the launch expectations. How does this happen for non-1st pary teams?

I'm going to draw out a couple of assumptions for ease of use here. Let us assume that the next iteration of the xbox comes out in Nov 2010 and you are going to expect a 2 year development time frame with a 6 month window for delays, so 30 months. When, why does a developer target the XBOX3 rather than the XBOX2(360)? These numbers mean nothing beyond establishing a time frame for my question.

So it's Nov 08 and you start development on your next title. You are looking at launching in Nov 2010. Assume you will have access to development hardware for the next gen systems as it becomes available - i.e.- no major delays in getting out the dev kits. The old argument about installed base doesn't really wash here. Otherwise no 3rd party games would be released for any new generation until it has a higher install base than the previous generation. Take GR:AW, released by Ubisoft in March of 06'. Why would a new platform, with a relatively small install base get your attention? On the 1 hand you have a captive, high attachment rate, hardcore user base with few options but there are still plenty of failures in these time frames. So, why? Why make GR:AW for the 360 instead of the PS2/Xbox? I find it hard to believe that MS/Sony/Nintendo are somehow subsidizing major dev houses to push a game into the next generation so they have content.

So why/when does a developer, not being subsidized by one of the big 3, push a game/develop a game from the ground up into the next gen cycle with a guranteed smaller install base. I can only think of a couple of reasons and that cannot be the whole story.

1) You have a game you are having great difficulty finishing, is already very late, etc - so you push it to next gen to use the additional power to smooth out development and have a captive audience for a game you know is going to be subpar. (PD0)

2) You are developing something that is attacking a niche or the hardcore, early adopters in some way and wouldn't sell otherwise. (I'm thinking Unreal Tournament - kinda.)

All that aside, when, assuming all is otherwise well, do you target the next gen? What advantages does the nextgen offer when its install base is so far below that of the previous generation>
 
It really depends on your target, besides devs don't really choose, publishers & head of the firm choose what's the best target given the targeted audience.
Having to make those low profile games on GF2 in here. (Should be a different story with Blood Bowl)
 
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