I think the App Store is definitely a major factor, but I also think XBLA was big in this regard. Games like Castle Crashers and Geometry Wars were changing how people thought of indie devs. 

Terraria is the game that really showed me. "Wow, indies are awesome!". Castle Crashers absolutely had a lot to do with the rise of indies it was a great game. Not to mention Minecraft

To bad he says it was a bad thing as it killed the diversified ecosystem the gaming industry had. 2D games almost got killed off entirely because no publisher would finance them (3D was the selling point of the generation after all - no matter how crapy it looked even back then) and Indies couldn't get their games published anymore (which until them publishers still did)

However, I disagree that the PSOne was the only culprit. In these days there was another movement going on, which I think was the real reason why the age of independent devs stopped in the mid 90s: Publishers started to buy the different independent studios and each other resulting in both less independent sutdios and especially much less publishers who would publish their games. Around 92 there where over 200 publishers, in 98 they where down to 60 and dwindling even further down. As Indies where dependent on the publishers to get their games released (barring shareware of course) it affected them dispropotionally much, even more so as publishers moved to only publish in-house games anymore.

I completely disagree with this.

For actual information on the subject from multiple sources I'd recomend watching this UK gaming documentry:

http://www.imdb.com/title/tt2404567/

It explains that it was the 16 Bit era that killed UK indie devs, due to how the studios piss poor relationships with publishers worked.  During the 8 Bit home computer era, many studios sold the game themselves.  Moving to the 16 bit era, they HAD to use publishers so they could get cash advances for development.  Many studios were just not set up for this, and during the 16 Bit many went out of business.

By the time the 32 bit era started, the UK indie scene was almost dead.

I don't know about UK gaming but I guess it probably happened because of FMVs and 3D gaming becoming a trend during the PS1 era.

lol way of an excuse to blame your failure on someone else. You know that consoles always had indies too right? The playstation was very indie friendly, you coukd even buy a devolopement kid as a normal person, it was called the NetYaroze

This dude is reaching