^^
Not every developer is in a bad shape, but only Nintendo looks able to do monster titles selling more than 20 million. It looks like every other one has the possibilty to do bad, good or very good, but only Nintendo can do monstruosly good this gen. But even Nintendo can achieve this only on a selected few titles amongst its many ones. This is maybe the most disrupting thing, no SW house looks able to do as much, but maybe this is also the thing that pushes some SW houses to avoid direct competition with Nintendo. About excessive costs threatening SW houses in case of even a single flop, you are right, this is a degeneration, and I'm persuaded HW developers should provide better dev tools to help lowering these costs. There should be also more game development courses at universities, and they should be kept reasonably up-to-date, to reduce training costs for SW houses.
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