How the Videogame Industry Shot Itself In the Joystick--and Why the Wii Has Stopped the Bleeding

[shams]

I believe there is a crash coming - and I think the Wii/DS will help soften the effect.

The crash occurs not when the industry stops growing - but when big brand games (such as R&C) don't sell enough units to break even - yet development costs continue to rise.

There are simply too many games out there these days. The last generation of games are still with us - and its created a huge flood of titles. Add to this to proliferation of VC / downloadable titles - and its become insane.

(and another point - if you tried - how many FREE games could be play - just by having a internet capable device, plus a web connection?).

...

Its time for a contraction. Some studios will close, some publishers fall over - less titles on the market - maybe even an entire console to drop out.

No wonder, low overhead DL titles (and in-game revenue sources such as advertising) have become so important to publishers.

Has MS been "bankrolling" the industry since the start of the XBOX?