Simon Carless has written a really good article on GameSetWatch where he argues that downloadable games on XBLA and PSN are too cheap to sustain themselves as a viable business model.
Also, keep in mind that in 2006, Garage Games’ Jeff Tunnell revealed that “The publicly available information on this is that the distribution fees for bringing a game to XBLA is 35 to 70 percent, depending upon participation by [Microsoft]” (via Gamespot). In other words, Tunnell implied that the “70% of revenues” is actually a ceiling… and one that you get only when you are doing the most work.
But yes, good analysis, and a must-read for anyone who’s interested in developing for consoles.
(Thanks, Alec!)