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mrstickball said:
Celine - Microsoft and Sony do have very viable ways of getting Indie & smaller studios in the mix, and allow them to be profitable.

They're called 'Downloadable titles'.

Kind of like Braid, which cost a whopping $300,000 to make and has sold over $3 million in revenue.

The ways to publish niche/indie titles still exists, even on HD consoles. Given how rampant the Castle Crashers crowd has been (#1 DL game of 2008. 500,000+ copies sold), the titles aren't selling too poorly, either.

 

WiiWare, PSN and XBox Live Arcade are excellent platforms for tiny developers but (on their own) are not enough to really produce a healthy industry ...

If we look at game development currently and compare it to the size of development teams from generations past we'd have:

  • WiiWare, PSN and XBox Live Arcade are similar to Atari, NES and SNES
  • Nintendo DS and PSP are similar to the SNES and N64
  • Wii is similar to the PS2, XBox and Gamecube
  • The PS3 and XBox 360 are a whole new scale of project

Realistically, no developer can make the jump from developing a game for the Nintendo DS/PSP to making a game for the PS3 or XBox 360 ... What this means is there is a massive hole in the industry that the Wii has filled.