China government invest heavily in domestic online games
China will invest 1 to 2 billion yuan (US$120.5 to US$241 million) in a program to develop some 100 high quality Chinese-developed online games from 2004 to 2008, according to sources with the Press and Publication Administration of China.
New generation of consoles means increased production costs
According to this CNET article game developers expect development costs for next generation consoles to double or triple compared to the current Xbox and PS2 generation.
EA Predicts Game Development costs to rise 200%
EA Vice President Jeff Brown expects development costs to sharply rise in the next generation.