Would an industry crash be such a bad thing?

[JEMC]

I don't want a crash, but a big shake up to bring studios back to reality would be welcome, and it looks like the fall of THQ hasn't made them realize their danger.

I think part of the problem is the whole idea that the videogames industry is like the movie industry that some analysts(?) started to say years ago and that some studios have embraced. It is not. Movie studios have the theater tickets, the DVD/BluRay sales, the rights to air their movies on TV and the merchandise to get their money back. Videogame publishers only have merchandising, the sales of the game and now the DLCs(which also cost money to make) to get their money back, and that is not enough to warrant the budgets of some games. They need realize that they have to scale back to affordable projects that don't put the Co. in danger if one of them fail.

Ubisoft seems to have understood this as they have stated several times that next gen there will be less AAA games, while others (like EA) have talked about AAAA games and stupid things like that.

Unfortunately, I think that until one of the really big ones fall, and I mean either EA or Activision (one of the japanese ones wouldn't have the same impact on the minds of the publishers) things would stay mostly the same, putting the whole industry in danger. And judging by how the things look now, the one that has more numbers to go down is EA.