I wonder what Malstrom would have to say about this video.

I think that is the point the video is making about the videogame industry.  The industry has to find other ways to entertain that people will buy, and the costs won't go through the roof.  What causes games to get that expensive, is designing games to be like movies, hiring voice actors, using leading edge graphics specs and going for gold plating on everything.  The industry fools itself into think that Halo, Call of Duty, etc... are where the money are, so they then feel they need to throw even more money at such products.  People can only buy and support so much out there.  They need to innovate at much lower costs, and hope to capture the attention of people.  If they fail to do this, they will go under.  The cost of this may result in people who are captivated by stories and movie-like experiences in their games and demanding it, to end up leaving.  BUT, what we do get is games being more games than interactive fiction.

In short, you don't have a lot of AAA stuff, as far as costs go, but you do have alternatives that are less expensive.

Through time like these, only the stronger survive. Companies like Blizzard, Nintendo, Atlus and others will remain largely unscathed. It's time to seperate the chaff from the wheat.

Pachter says publishers got problems because people are playing games like MW2 several hours in multiplayer. But Nintendo has always shown that this doesn't have to be a problem: People have put ridiculous amounts of time into multiplayer powerhouses like Mario Kart, Smash Bros and now Wii series games, as well as lots of single player games. What that did was create a very loyal fan base.

Yes, that's how some studios can make their money back but this model doesn't fit in with all types of games. The underlying problem is that many games just cost too much to produce. If costs go even higher for the next gen, we will see fewer games (particularly original games) and more studios closing.

I wonder what the ratio is for DLC purchases. I remember seeing an article, I think on IGN, saying the percentage of people buying DLC after the intial purchase is not that high, but I could be wrong.

What good have Peter Molyneaux, Trip Hawkins, Cliffy B and Michael Pachter ever done for the gaming industry?

melodramatic best describes the video

Indeed.

In that entire video, pachter tried to justify milking gamers. He was painfully obvious.

what you fail to realise is that AAA was and still is an industry term for a high budget main focus title. Later somehow it became used by gamers to say the game has a meta score above a arbitrary number usually 90.

Not sure about Pachter but maybe some awesome games for us to enjoy?