I see some people are talking about costs of inflation, where games back then being priced, it's more than what the games are currently priced now, so a game $49.99 in the past for PSX or PS2 is more than is more than the $59.99 we spend now. Don't you guys think this works both ways? That SNES game, PSX game, etc that you bought way back then, the developers had to create it, license it, manufacture it, then ship it. On top of the fact that games sold less back than they do today. People are talking about games being more due to inflation back then, but they also cost more to develop and publish because less inflation back then as well. Calling outt one but not the other is cherry picking for your own benefit.
Far more developers way back when have been on the verge of going under for poor sales than in this generation then bought out, or they've went bankrupt and their assets sold off. That should tell you that things are no different now than they were back then. Now I'm not talking about Sega who was a console developer, a lot of developers/publishers.
Here's a list of video game developers/publishers that are no longer here because of a merger, bankruptcy, whatever. It doesn't show all developers and publishers. I know they're missing Mindcraft from this list who developed the Magic Candle series as well as others. Some of the developers/publishers that I was a fan of. Working Designs is a well known publisher for RPG fans with games like Lunar, Alundra, Arc the Lad, Dragon Force, etc. New World Computing went bankrupt and is notable for the Might and Magic series(I'd recommend purchasing Might and Magic Collection 1-6 for $4.99 at GOG if you want a taste of just how great their games were back then.)
http://en.wikipedia.org/w/index.php?title=Category:Defunct_video_game_companies&pagefrom=Gremlin+Interactive#mw-pages
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