In response to the OP, I think they are right, as the current model is broken.
For gaming, people only have so much money to spend. A few years ago, you would buy a few games, which would support more developers / publishers. Now, people buy fewer games and purchase DLC / season passes for those games. All of the spending is concentrated on these few games, so instead of 10% of games breaking even, it has become 1% (don't quote me on these numbers, I am speculating). If publishers see that something is not a hit, they just shut it down (Prototype is a good example of this).
On the bright side, there are a lot of good indie games cropping up to fill the void. Guacamelee, Braid, Limbo, etc., are awesome games. I think Ninja Theory can do mobile gaming while still releasing games on Live or PSN. I think it is smarter to hit more platforms than less.
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