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pokoko said:

You seem to be saying that most of the problems with the industry can be traced to games having large budgets.  If that's the case, then games with smaller budgets should be performing better.  However, that's not the case.  It's the middle-budget games that have totally died out this generation, with many middle-level developers going belly-up.

And I'm still confused about what you're saying with Steam.  Because Steam has sales a lot they get a free pass?  Despite being a DRM pioneer?

Also, isn't it a bit unfair to compare the sales of Nintendo software with those of third-party developers?  Nintendo software franchises were built on a monopoly situation where Nintendo software was given prime position.  That's something any developer would kill for.  You think it doesn't help Mario sales greatly that Nintendo also makes the console?  Or the same with Halo or Uncharted?  And those are the big budget games you say are killing the industry, but they're doing quite well for themselves.

You're seeing the effect, and ignoring the cause. Mid-tier games have disappeared because their source of funding has dried up: the big publishers are far more interested in only funding the high-end titles, and are increasingly expressing open disinterest in anything else. The pattern you're identifying of established market players retreating to the higher-end market has been repeated endlessly in the past, and will be repeated in the future.

I'm with you on Steam though. Never really saw the difference myself.

Regarding Nintendo/Sony/Microsoft titles, there is nothing unfair in the comparison, and I can't see where you're coming from.