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BMaker11 said:

Other than Lair, Haze, and Too Human (of note), how many HD games with "big budgets" have lost money?

Off the top of my head that I can cite sources for? Prince of Persia, Brothers in Arms: Hell's Highway, John Woo's Stranglehold, Mirror's Edge, End War, Turning Point: Fall of Liberty, Heavenly Sword...

There's more, of course, but these are the ones I know I can find a source on and which have occured to me in the past ten seconds.

BMaker11 said:

Stuff like movie tie ins and Naurto: Rise of the Ninja aren't big budget.

 

Movie and T.V. licenses are actually pretty expensive to get. They're also very coveted by producers, since unlike many other games they're basically guaranteed to make a profit due to popular familiarity.

BMaker11 said:

And other than Free Radical, what studios have closed...

 

Midway...Ensemble....Psuedo Interactive...Sega Racing Studio...ACES Studios...Iron Lore...Stormfront...Castaway...Perpetual Entertainment...Factor 5(?)...Brash Entertainment...NCSoft UK...Pivotal...Venom...Flagship...Big Huge Games...Black Box Studios...Locomotive Games...Paradigm...Mass Media...Sandblast Games...

Again, these are just off the top of my head. I can look for more, if you like, as there are plenty more to be found...

BMaker11 said:

...and who's been fired?

 

http://www.gamasutra.com/blogs/WandaMeloni/20090508/1344/The_Brief__The_Gaming_Renaissance_Movement.php

"From July 2008 until now there have been over 60 companies that have publicly announced layoffs, with the majority of these layoffs coming just in the past four months.

I have tallied up these figures and a staggering 8450 game industry professionals have been laid off since July. Of these, roughly 6300 or 75% are from North America, with the remainder coming from the UK and Asia. Game Developer Research’s latest Game Developer Census 2008 Report published November 2008 estimated the North American gaming workforce to be 53,900. That puts the current game industry layoffs in the North American at 12% of the total workforce.

On top of the layoffs at least 13 studios including Microsoft’s ACES Studio and Ensemble Studio have announced they were closing. A handful of others are on life support, operating with a skeletal workforce and actively looking for buyers. Yesterday’s news that 3D Realms closed its doors make it just another causality."