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I don't think "AAA" games are doomed. I think, if anything, those mid-range titles that we know and love will start to disappear from the gaming landscape, and we'll see, increasingly, two large peaks represented, on one side, by a handful of multi-million dollar franchises and, on the other side, relatively low-budget indie games. In the middle will be the discarded remains of Darksiders, Dead Space, Red Faction, TimeSplitters, etc.

Personally, I wouldn't mind if the "AAA" model was abandoned altogether. Development and advertising costs for some of these games are obscene and, in many cases, a particularly passionate and ingenious small studio can produce a better product for a fraction of the cost.