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Which isn't true because Stars will make a profit regardless.
Here are the two scenarios:
- Gamefreak make Stars and therefore profit. They then make Gen 8 and profit.
- Gramefreak make Gen 8 and profit.
Stars will not result in a loss. You can argue that they will make less of a profit by hi-res models. But that wasn't Riley's argument as he said they would "lose money".
Well it's still a bad decision regardless of whether or not it's a loss or less of a profit. Businesses seek to maximize profits, not just arbitrarily make a decision that makes them money. What it comes down to is these two scenarios:
1. Game Freak puts Stars on 3DS. They spend less money on the graphics and so they have more profit from the game.
2. Game Freak puts Stars on Switch. They spend more money on the graphics and so they have less profit from the game.
8th gen is coming either way, so the difference in profitability mainly comes down to whether or not they make Stars a 3DS game or a Switch game. And out of those two, keeping it on the 3DS is the smarter option.