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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.