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Posting so I can find this easily. I don't have the time to read it right now.

 

Edit: Good read. I agree that this high risk, high reward strategy that has been going on is going to nip some developers in the ass. If you look at Sony and the financial situation they are in now it is the same thing. They broke the bank and thought they would get it back with high sales and high software sales wich obvioulsy is not happening.