"Epic gaming" isn't killing isn't ruining video gaming. "Epic Gaming" is ruining publishers and developers.
Look at hollywood: some of the most succuessful movies of all time (Blair Witch Project, Passion of the Christ, Terminator, Napoleon Dynamite) were made low-er budget movies, with noname actors that wound up well besting their budgets.
The problem is, in the PS1/2 era, everyone thought "well, if I pour alot of money/time into a gaming concept, it'll make tons of cash". Unfortunately, with the cost of gaming (and I'm even saying this for the Wii too, since games on it aren't as cheap as PS2 games).
The problem with this, is the market is changing. There are only a few high-budget, high-yield franchises that can guarentee good revenues, despite a $20-30m budget.
Games like Beautiful Katamari, Guitar Hero, Gears of War (UE3), Puzzle Quest, and a few other cheaper (under $10m) games are what the industry needs to understand: going around barriers to just create a fun game is what matters, not a uber-polished schmuck fest.
Having said this, I still see PSN, XBLA, and WiiWare leading the way of fixing this. With the downloadable formats, your forced to keep the file sizes small - too large, and the consumer can't hold alot of media.
A report recently done by Microsoft, via Gamasutra said the average developer was well on it's way making a profit via XBLA. Near-every game during that launch period (05) well made it's profit back in a year, and was still selling at a rate of 25% of it's launch month's evenue. That's friggin awesome.
For refference, XBLA's Puzzle Quest (a DS port) has already sold atleast 55,700 copies on XBLA, for a total revenue of $800,000 USD, according to http://joaomgcd.planetaclix.pt/GafGamersLeaderboard.xml . That's just in 2 weeks. Not overly massive, but will continue to be steady, and most likely, that $800k has already justified the port and then some.
I am hoping to come into some money soon through investments. If I ever have the cash, I'm buying a XBLA development studio. They are by far, the most profitable wing of videogaming at the moment. Don't believe me? Look at the lists of how many XBLA games are greenlighted: it's far, far, far more than traditional X360 exclusives.
Back from the dead, I'm afraid.












