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I agree with the article to a certain extent but as others have noted, services like PSN and XBLA open up opportunities for developers on a tight budget. Games like flOw and Everyday Shooter are evidence of this.

Traditionally, most gameplay innovations have originated on PC, as it is by far the most open platform, but this generation of consoles has gone some way to changing that (it's still got a long way to go, mind).

The important thing is that there are always outlets available for original game developers to distribute their wares. Innovative developers working on small budgets will get noticed and their budgets will gradually increase as a result. While publishers may attempt to rein them in, to avoid the risk of gameplay that is too "experimental", proven talents will still be left to their own devices (see Will Wright). It is no different from the film industry. Just because Michael Bay films make more money, that doesn't stop Woody Allen films getting made.