I think the model is the one that needs to change, but the prevalent AAA model of US companies will stay until it busts.
I have noticed several new european companies releasing games for the new hardware. These are modest companies wich are trying to gain some notoriety.
These can be cdprojectred with the Witcher, CI games with Lords of the Fallen and sniper elite, Focus interactive with Bound by flame and even From software with The souls series.
These are companies that dont have huge budgets but are still making good looking games. To be completely honest, since i heard from Pachter that game developers many 68k dollars a year i suddenly stopped feeling sorry for them when they are fired and i understood a bit more why game development costs in the US are spiraling out of control.
The future for the games industry is outside the US, where development can assume more controlled costs. That or things need to change in the US.
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