The used games thing was only a temporal patch, the problem is that there are several devs that are compulsive spenders. Dev costs would have keep increasing until they were again in trouble, so in the end it wouldn't fix anything.
Lack of variety will hurt the industry in the process. Focus in less and less genres, and less and less people will buy a console.
It's all their fault. Wasting ludicrous amounts of money isn't required to make a game that makes a profit.







