well to be fair HD development has killed a lot of great studios from the SD days (i.e factor 5, free radicals) who took extreme risks in the hope of a great new IP. If a new IP failed on PS3 and 360 it was bankruptcy, when a game failed on SD well it didn't cost them that much and they could wear/minimise the damage.
What I have noticed now days is lot more sequels and less risk with slight evolution. ATM the only dev who has taken major risks is naughty dog and it paid off for them.
Other studios turned to the mobile phone market and Wii to some degree to release casual games to offset their early HD losses.
Saying all that the industry has adopted now to the new standard and hopefully we will see some growth. I just hope by the end of the gen it doesn't even up being a three horse race of 3rd party publishes EA, Activision and Ubisoft.
