Next-generation consoles have wowed gamers with breathtaking graphics, surround sound and stunning gameplay since coming on to the market in the past year.
Halo 3 has been a massive success for Microsoft
Cutting-edge video games might be a dream come true for consumers around the world, but for many companies developing them, it's been a nightmare.
The movie-like productions on Sony's Playstation 3 and Microsoft's Xbox 360 games have meant that the cost of producing them has risen sharply.
Halo 3, an extremely popular game produced by Microsoft, is estimated to have cost $30m (£15m). However, the American software giant was able to recoup that, and the millions more spent on marketing, straight away.
On its first day of sales, it brought in $170m, setting the record for the most money earned in a day by an entertainment product. It far outstripped the money made in a day by Spiderman 3, the biggest-grossing Hollywood film.
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