"Also consider this - how many publishers of those 'hardcore' games have posted profits? Activision off the back of WoW and GH but very few others. HD graphics development costs are killing this industry. It needs to reinvent itself."
It might have been a problem that occurred in the switch from 2d to 3d days happening too fast because as the old saying goes once you've had better graphics, then you can't go back.
And that is actually a problem with the current gen games on hd consoles. The graphics leap hasn't been big enough and that could be part of the Wii's success. Maybe games like Galaxy look much better than previous era Nintendo games, but when you get a PS3 and are hyped for Ratchet and Clank and hear that the game is so realistic that you'll be able to see his fur bristle, for example, then you get the game and it looks good, but still looks like the PS2 version, you're a bit disappointed regardless of the fact that the game is still as good or even better.
I think if there had been a much bigger leap in graphics from last gen (and the 360 has the same problem -- Gears looks a lot like Splinter Cell to me with bulkier soldiers), then the HD consoles would be doing much better.
Maybe there is a descrepancy between expectations for these consoles and what can actually be delivered with modern technologies.
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