Increases in production costs are outstripping increases in revenue

[Bodhesatva]

There's definitely ways to reduce costs, Legend, and I absolutely agree that the best solution is the one you named: middleware.

Yes, we can expect costs to go down during this generation as engines are established and the wheel is firmly invented. I think we can expect the economy to go from terrible this year to mediocre next year; and perhaps the year after that we will be at "pretty good."

But the year after that, 2010? Companies start ramping up for the next generation, and they really ARE forced to reinvent the wheel again. The middle of the PS2's lifespan is approximately when EA saw their R&D costs begin to increase, presumably as they readied themselves for the PS3.

A year or two of "pretty good" profits won't compensate. Something has to change.