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Edouble24 said:

Some of them are losing money based on releasing bad games. I know companies are losing money this year, but that's normal in any industry. Every industry has it's downtime and the lack of strong releases is hurting 2009. The revenue of the game industry is just fine, poor management may be hurting some companies as they adapt to change. It's nothing to be doom and gloomy about. Some companies report decreases in profit while others report increases. That's just how competitive markets are. 2010 will easily move things back into place due to big games actually releasing. Companies like EA and Activision will be just fine in the long run.

You don't understand what they're getting at: in terms of profit the game industry hasn't been having a bad quarter. It hasn't had a bad year. It's had a terrible generation. Almost universally, profits are down, studio closures are up, and even the big studios are starting to merge.