So, we all know the large companies haven't been doing so hot lately. Square Enix and their layoffs, THQ shutting down, EA laying off 10% of their work force, ballooning budgets that will grow even more etc etc

IF the industry were to go through another crash, would it be this horrible thing that ruins the industry or would we get more out of it than we lose? It most certainly wouldn't be a crash in the same manner as the one in '83, but more along the lines of a pruning. The major companies are choking out the mid-tier companies, forcing them into thinking they need to have massive budgets in order to compete. This leads to studio closures, even from the smaller studios within big companies like EA, Capcom, and so on.

I wrote an article on the subject where I go into more detail about why I think it could end up benefiting us in the long run. Not that I want it to happen of course. You can read it here: http://playeressence.com/would-another-industry-crash-be-such-a-bad-thing/

So what do you guys think? Good? Bad? Not even remotely possible that it will happen?

I would welcome a crash if it could stop the trend towards ever increasing dev budgets and a few triple-A games dominating the market. I would like to see the industry become more innovative and risk-seeking.

A return to a creativity, imagination and Ideology that was present in the SNES/SEGA age till the PS1/N64/Saturn + DC would be god send. The way games are designed, what is priority during game design is utter shit.

I'd be ok with a slight contraction but not a full-on crash.

Industry is going through transition similar to what movie industry went through back in a day, leaving 6 majors to control most of the market - it's highly unlikely it can crash. BTW, crash of 1983 was NA only, neither Europe nor Japan where influenced by it.

The thing is we're looking at an NA crash more than anything else right now.

History repeats itself I suppose.

Sony makes big budget games that are different. Uncharted, Infamous, Heavy Rain, Beyond, Last of Us, Puppeteer, LBP, Resistance, and Journey are all new IP that were made just this gen from them. I'm not worried about creativity on their platforms and looking forward to the traditional ND new IP with the next gen as well as something new from Insomniac, Guerilla, and SSM (even a new mythology would be great for them).

Point being if it were them, MS, Nintendo, Insomniac, Activision, and EA making games I'm sure they would make new stuff if that's what the market demands.  Ubi has been my favorite 3rd party even though they've been milking AC because they always give me a new experience and of course Nintendo and Sony always bring something awesome.  Big budget studios=/=lack of creativity.

I could have sworn there was a thread about this and in that thread I replied "Mismanagement is a problem in any industry". Let the big boys collapse, maybe those huge execs giving themselves 56 million a year in bonuses will leave (Yes this is only one man, but I'm sure there are other situations like this.).

I won't miss dinosaurs like EA and other big publishers.
Companies like Valve, Mojang, Riot Games, Wargaming.net who care about their consumers will still be making tons of money.

There would be a lot of studios closing and the loss of several popular IPs from 3rd parties that can't bear a financial loss like a market crash.