The industry is fine. Some companies lose sight of scope and go tits up...
Like if you can't afford 20 million dollar development or can't deliver a quality product, do a Wii title...trust me, Wii fans will thank you for a core game even if metacritic says 75.
If you can't afford developping for the wii or don't want to, or if you are independant publisher, do a PSN, XBL, Wiiware title.
Don't be doing Too Human for 9 years and then crying when shit goes bust.