We're only seeing somewhat of a weeding out of smaller publishers, and even then only of smaller publishers who fit 2 criteria:
1. Unable to compete on their own in the High PC/PS360 market. They can't muster the financial resources to pull off the kind of top-notch game to grab attention, not without posting significant losses anyway
2. Unwilling to shift to a handheld, low-end PC, and/or Wii development model. Which is only for companies that are either stubborn, or so thoroughloy ingrained in what could be called "core" development that they are simply unable to make the switch
Basically, the game is up for the sucky core publishers, like Midway, but ultimately it will make the industry healthier. It will streamline core game development, and also encourage more development in the handheld, Wii, and mass-market PC development, which is where the industry's growth is now anyway.
Monster Hunter: pissing me off since 2010.