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The Ghost of RubangB said:
1: Stop making shooters. Please. You're not Valve. I'm waiting for the next Portal.
2: Stop trying to force photo-realism down my throat until you can get out of the uncanny valley. Work on style and presentation instead of just pixels and bloom.
3: Try something weird and new, and hope we like it.

You'll cut costs way more than you cut revenue, and thus increase profit. Ask Carnival Games. Ask Geometry Wars. Ask Puzzle Quest. Ask Katamari. Ask Viewtiful Joe. Ask Portal.

 2:  Agree completely.  My god, you can spend as much time and effort making sure that the faces of all the people in ME2 or whatever game have realistic pimples and scars but I don't care one bit about it!  You know what I do care about?  If you used that time to design and implement another weapon or something.  Who cares if there's realistic nose hairs?  I'm not going to notice the damn things anyway.

I think the answer to this problem will be a massive rise in reusable fixed assets (make one game, reuse 2x for a trilogy!), pre-made engines and middle (every game will be made with UE3), and high game costs ($60 already for 360/PS3 vs wii $50).  None of those appeal all that much to me.