What I said remains true, if they double the budgets they have to double the revenue from those hits otherwise they'll make less profit or lose money like other publishers.

Let's just say that I'll be thoroughly impressed if Ubisoft doubles their average budgets and makes the same profit margins...

Things have always been "good enough" for some consumers.

These industries are, and always have been, driven by those of us for whom it is not "good enough."

There's always something that can be improved upon, that's not yet "good enough" for other consumers. That's what drives industry growth, not focusing on the currently playing groups who have ever increasing demands.

Of course the iD guy doesn't mention Nintendo at all, but his reasoning is otherwise solid. I think that it will be a close match between Microsoft and Nintendo as to who will move first, to the point where it won't really matter.

The Videogame industry reminds me of the Printing Industry.

A lot of publishers (printers) got in trouble because the only thing they focuses on for improving their profits and margins was increased sales.  They didn't find other ways to make money, expand their buisnsess due things cheaper yet the same quality etc.

Then they hit a point where they couldn't make more sales.  Traditional print revenues declined as techology got better and they hit a wall with how many sales they could get.

Then the recession hit... and a lot of them went under or took heavy beatings.

Too many executives and others see sales as infinitly increasable... the "Every person alive is a potential customer" kind of thinking.  Which while good for motivating sales employees... it just isn't so.  Most buisnesses have a cap they're going to reach... and it's good to know your limits... and how far you'll be able to get until things change.

i hope this Gen lasts for another 3-4 years...dont wanna buy another console too soon...got my PS not even 2 years i dont wanna think about a PS4 or a XBox720 or something like that!

You don't understand - The big problem of PC gaming is that the requirements of games are ever increasing, leaving out many PC gamers that didn't buy/upgrade their PCs, especially at the start of every console generation because many developers try to push graphics on consoles hard and give unoptimized versions to PC gamers.

However, as the time progresses it's becoming different because technology is getting so much cheaper and PCs can last much longer, even longer than consoles. If this generation drags for a few more years, less developers will push the envelope on PCs and more people will keep updating their PCs that will last not only this generation but also the next gen of consoles.

That is why the best years for consoles are at the start of every gen, when people rush to buy them, while after 3 years or so it's PC land because then consoles' sales increase modestly.

Do you really think PC's will start competing again due to the technological differences between affordable graphics cards and the consoles?

You can already build a $400 PC that will play any game better than consoles. Imagine how it will be 2 years from now.

Yeah, and that brings me back to what I said before, they're already "good enough". The increase in value for graphics (and physics, and AI) has hit diminishing returns.