Bethesda - Oblivion, Fallout 3, Skyrim...three of the best RPG's of all time.

Naughty Dog - Uncharted series

Infinity Ward - Although MW2 sucks dicks and MW3 needs some desperate patching done ASAP....I still give them credit for making Call of Duty 4 which is easily in the top 3 (if not the best) FPS of all time.

DICE - hahahahahha just kidding Campfield...errr....I mean Battlefield sucks more ass than MW2. Seriously BF fanboys say CoD has terrible camping (which it does) but its worse in BF3. And the spawns are horrible as well, can't even tell you how many times I've either spawned on a tank...or spawned 3 miles back from the action with no vehicles near me so I have to go for a 3 mile run.

Square-Enix has had their best generation ever. Their games since they merged have been far better than the ones they made when they were separate companies. The Final Fantasy franchise has shown a particularly great improvement.

Is this sarcasm?

I'm being deadly serious.

Just look at how they improved the mainline FF series with XIII. They streamlined the game and got rid of unnecessary clutter that confuses gamers, and instead focused on creating an even more immersive experience.

Or look at how they saved the FFVII franchise. Crisis Core filled all the plotholes from the original game and introduced well-liked characters such as Genesis who are vital for our understanding of the story and make everything much clearer. They did an especially good job on rounding out the characters of Cloud and Sephiroth, making them much more appealing to a modern audience. It's far harder for non-FF7 fans to criticise Cloud and Sephy-kun now.

Bioware, Naughty dog and Nintendo if u ask me.

A lot of poeple mentioning developers that were already producing great games...

Gotta go with Warner Bros and rocksteady, also i think i should mention infinity ward for Call of Duty 4...a COLOSSAL step up from previous cod's.

One of the bigger publishers that i think has improved is EA. I know a lot of gamers hate them but they've allowed for some new IP's to be done like mirrors edge,dead space, bad company, but also kept the quality or improved on it for their established franchises with Fifa 12, Battlefield 3, and Crysis 2.

For Me , The First Thing That Came On My Mind Was Bethesda Software , They've Done A LOT In This Gen , Just Take A Look At Fallout 3 Or Skyrim , One Of The Best Game's This GEN ..

Rocksteady Has Done Amazing Too  ,  Batman Arkham ( Asylum/City ) Is Easily One Of The Best Games This Gen ....

Bioware Has Also Done Good , Mass Effect .. Do I Need To Say Anything ? xD

And Irrational Games For Making Bioshock . 

Plus , I Really Think That Valve Had Done Great Too With Left 4 Dead And PORTAL 2 .. <3 !

Eventually I Think A Lot Of Developers / Publishers Has Stepped It Up This Gen ...

Square Enix! *runs away*

I also thought Naughty Dog were great this generation and Bethesda, minus the bugs and Oblivion.

I too am having a hard time seeing how this is not sarcasm.