Pachter has a good point about small developers. This is why handheld devices are good. Handheld games cost very little to make compared to games on consoles. I think Western developers should put more emphasis on handheld games. If there is one area where the Japanese are ahead of us as far as video games go, it is taking advantage of the "little cost, little risk" of handheld games. The relative lack of development costs encourages innovation and unique games without the downfalls of big budgets. Sure, you won't get the amazing graphics you get on next gen consoles but sometimes you have to make sacrifices for the greater good. Sure, there are downloadable games but handheld games have the advantage of not having space constrictions that you get with XBLA and PSN games.
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