A good question and one that has been discussed over on the official PlayStation blog. Doling out remarkable insight, Shu Yoshida walks us through the creative steps taken in creating the games we love to play. Yoshida is the Senior VP of Product Development at SCEA, so if anyone knows what goes on in game creation, it's this guy. He starts off by telling us a little about Sony's policy on developers. They don't tell their developers "we need an action adventure game, so make one" rather, they take the ideas in and let the studios work on them until they show them off to Yoshida and Phil Harrison. At that point, they can red-light the project or let it continue, it is implied. That's good for keeping more quality games coming while filtering out the less-than-spectacular works, at least, for the internal studios.

After a concept is chosen, there's the whole budget deal. A Blu-ray project on the PS3 generally has costs from $2-5 million just for a prototype (which takes over a year to create). After the prototype is created, the game gets shown to people inside of Sony to let them see how it's progressed as well as to create some marketing segmentation: who's the audience, what's the competition, how can they get said audience interested, et cetera. They bring in their selected audience to preview the game in the next stage and get feedback before development gets too far along to change the more core bits of a game.

All in all, it's a really interesting read despite our attempts to shorten the explanation. Sometimes it's better to just check out the original article, since you can also see some early concept drawings of Calling All Cars! and leave your feedback and questions so Shu Yoshida can check them out.