Next gen development is pretty hairy – even current gen in hairy. We’ve worked with teams of 140 on a PC game (not even console).
Things are definitely becoming more production focussed though of late, with multiple pre-production teams (of about 15 to 20 people) running in parallel, these being pared down to one or two front runners (after focus group testing – yeah it happens this early now in some cases), and then it scales up to 50+ or more.
Dave Perry said to me late last year that he’s expecting to see the first $100m game production by 2006 on next gen. Hard not to believe that really.
More than ever you got to choose your niche – because you’re not going to compete with the big publisher muscle at the blockbuster end of the market.