I don't think anyone can really argue that this generation shift has been far harder on developers than most previous generations. The following things have had an impact that is still being felt in various forms throughout the industry:
- The Nintendo DS being the unexpected leading console
- The PSP's awful software sales.
- The Wii being the unexpected leading console
- The PS3 and XBox 360s (amazingly) high development costs
- The PS2's continued viability
In the handheld segment the industry has (mostly) adjusted, but the PS2 is still seeing support which in previous generations would be producing "Current Generation" games, the large development costs associated with HD games means that fewer games can be developed at a given time and they take far longer to complete (which results in fewer games being released), and it has taken a long time for developers to start shifting resources to the Wii (and at the moment most projects have been lower budget with smaller development cycles to "Get Something Out" rather than produce amazing games).
