Ouch. If that is true and games like Bioshock Infinite and Tomb Raider have problems to break even, the game industry is in deep shit. Developers can't just start to make games half that big and with lower res textures and lesser polygon resolution and try to sell them full price. Customers would be avoiding it. So studios with big AAA projects may have a difficult time ahead.
It's true. The industry is just not sustainable at the rate it's going for the "AAA" game model. Things like GTA and COD obviously have nothing to worry about, but for every GTA there are a dozen other games that just aren't making enough money back to warrant what they cost to make.