Sega, rareware, konomi, Sony exclusives on the ps1 (spyro, crash, ect), bungie (lets face it, halo is better off with 343), capcom, squar, in some ways nintendo (nintendo is still my favorite gaming company but they used to be better), lucas arts, and soo many more

I think the company that has lost the most talent is deffinintly rareware. They used to make some of the greatest games of all time and they are some peoples favorite developers. Now they make games that are some of the worst of all time. most developers i have listed make ok or decent games now but rareware makes horrible abominations like grabbed by the ghoolies and ruined banjo kazooie.

Square and capcom comes to mind. Also Maxis

All of Sega, Most of Nintendo.

Capcom
Konami
Sega
Nintendo (still great now in comparison to today's standards but still they used to be much better)
Squareenix
Rare

I'm sure there are more but those are the ones off the top of my head

All of them and that's not even a joke

^
I agree, basically all of them.

Perhaps the only developer who ended this gen better than they were before is Naughty Dog.

Capcom and Sega, I don't really understand why some people mentioned Nintendo, they are doing just as good games as they use to imo.

Square enix has definitley gone done the pooper, and capcom is really screwing up some of my favorite game series. Lionhead hasn't made any good fable games recently. I'm glad namco and bandai still release quality games.

Pains me to see the almighty SEGA's name mentioned so much on this thread.

Still, i know they have it in them to make great games despite massive departures.

Binary Domain was one of my top 5 games of 2012.

In 2011 Sonic Generations was my GOTY.

Virtua Fighter is still the pinnacle of 3D fighting games.

Not made by SEGA, but Sonic and All-Stars Racing: Transformed is simply THE BEST karting racer this gen (and all time for me) by quite some margin.

One last thing...... i do grrrrrrr when people type Sega or sega rather than SEGA (you know what i mean).

In a nutshell, all 3 of my fave companies are not quite what they used to be...... SEGA, Capcom & Nintendo.

But with the franchises these LEGENDARY companies have under their belts, i would NEVER rule out a return to the top.

Square Enix......