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The real downside is that the "middle" is where new IPs used to come from. If they did well enough, then they'd grow into the "monster" franchises. However, most big time publishers want instant results. If a new IP isn't a massive hit, then it's done. That's the mentality that comes from always looking for the next big thing, for long term franchises that can be milked with spin-off after spin-off.

One day the choice is going to a $15 downloadable game or Call of Duty 12 and not much between.