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The business model of some developers may have to change. They can try to compete for the top and risk losing everything, or perhaps scale back on lower budget titles that will earn a steady stream of income. Nintendo isn't going to stop making software anytime soon.

I said months ago, there will be a natural selection of developers. The poor economy is accelerating this evolution. Developers that can't figure out a way to be profitable will die, and there are many deaths coming.