Increases in production costs are outstripping increases in revenue

[johnlucas]

Chadius said:
btw, Nintendo came to this conclusion halfway during the Gamecube era. Many developers told them that graphics were finally good enough it didn't matter anymore, so they took that design into the Wii.

Many smaller/mid companies were munched during last gen like Hudson and Taito. They couldn't make games for the consoles they liked because of high costs.

With the influx of casual gamers and the Wii's success at going for casuals before hardcore gamers first, maybe the industry will take a step back and realize what they're doing before it becomes too late.

All I can say to this is Amen.

Words from a game developer himself, Chadius breaks it down why Nintendo took the direction they did which is gaining them millions now.

Now everybody knows why Nintendo IS the videogame indsutry. They take the lead and are not so influenced by the actions of other companies in the field. It is because they have deep understanding on what drives this business. Their mistakes are how the other companies gained ground. But in the end it all comes back to them.

Making the games business a VIP affair is fatal for this industry. Lossleading and subsidizing of platforms only leads to ruin in the long term. Performance enhancing drugs (green 'roids = money) have reached the limit of their ability. Time to get back to basics. Time to keep it natural.

John Lucas