The companies are not doing great. Only a few of them are actually posting a profit. some of them are even dying. And they are "The Video Game Industry".

Fewer companies means fewer games. And most likely that will mean fewer quality games next generation.

I can only assume you did not read the second part of my post. Please do, and know that I agree with you.

What? Eidos got swallowed due to financial problems. Midway went bankrupt. EA, Take 2, THQ and now Ubisoft are all losing money. The industry is not doing great.

I did and I agree with you. Only you and stof posted that graph in the context it was used in the article. The NPD confirmation was for you, the rest was for everybody who didn't read the article. My fault I didn't make it clear.

The Video game industry NEEDS to die!!!!

They turned their back on Nintendo the saviors of the Industry, and they said they should go 3rd party?!!

Serves them right!!!

The industry as a group has never made as big profits as these last years, the issue is the majority of those are concentrated into fewer companies ( Nintendo + Acitivison probably represent over 90% of the profits)...

And I'd say most of Activision's profit actually comes from Blizzard which doesn't even make video games.

I don't know if your statement is correct though. Especially if one subtracts the losses from the profits..

The issue is that game developers feel the need to make games with groundbreaking visuals which is skyrocketing the budgets. Western developers need to be more like the Japanese developers.

Complete failure of an article.
Not only does it fail to notice that we are in a recession, but also that it isn't the enthusiasts who have been buying less, but the casuals who have no real vested interest in gaming as an entertainment source.

But did the market want it before this generation started?