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Exactly, Davy, and it's a mostly self sustaining system. If people keep buying sequels in greater numbers than most original properties, it only makes good business sense to keep producing sequels.
Of course, if almost every new game is a sequel, then everybody will buy them because that's all that's available. If sequels were rare compared to originals, of course more people would buy originals.
That might be too simplistic a view. People might buy LESS if everything was unfamiliar. Familiarity - and I think this is a truism for all forms of media consumption - breeds success. People feel comfortable buying what they know, which explains the success of licensed videogames that without the license wouldn't stand a chance because they suck.
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