Although very interesting, I don't agree. I believe that the industry is adapting as we speak. Yes, I think that companies are starting to change how they do business. This is a good thing. I am saddened to see some of my favorite developers close their doors as well, but that is because of the recession. It seems like so many people are in denial to that fact. In todays day and age you cant expect a developer to release a game like bionic commando and still be open for business the next year. Look at uncharted 2. I think the game has sold twice as much because of how well the game was made. It is a great game. Bionic commado(for most) is not. If Uncharted 2 was given a 5 Metacritic rating, I dont think it would have sold 500k copies. My point is that yes, we as consumers demand more. I don't have as much free cash, so when I purchase a game I am going to make sure that it is going to be worth my money. Isn't that what it's all about?

Yeah don't blame the economy. The industry is dying due to high dev costs.

The economy isn't stopping people from buying more games than at any other time in history. However, the economy is effecting game developers for the exact reason stated in this article. Game costs have soared. And the economic troubles started with the banks, which aren't lending as much money now. So game companies dependent on bank loans to fund their game development are finding it harder to get the loans they need, at a time when development costs have sky rocketed.

So yes, the economy has hurt developers, because of exactly what this article talks about.

The author of the article seems to imply, but stops short of explicitly stating that the industry needs a second crash to right itself. As disturbing as it sounds, it might not be too far from the mark - after all, if circumstances have shown that third parties need to change to survive, but have proven themselves unable or unwilling to, what options are there left but to play out the inevitable Malthusian catastrophe among the industry, and leave only those who can and will adapt?

I am VERY concerned, not about the industry collapsing, but about it shrinking. I'm sure, once the recession passes, and the industry will grow again.

However, as the industry shrinks so do our CHOICES as CONSUMERS.

What I fucking mean, is that we would be stuck to playing games like Modern Warfare 2, if we do want an HD shooter. I'm sure there will be plenty of alternatives in the form of cheaper more indy games, but I don't want that. I want games like Bad Company 2 that utilize a shit load of technology and money, to give Destruction 2.0

So as the number of games and firms decrease, the first ones to go will probably be games like Heavy Rain, Mirror's Edge, etc.

So woe to people like CGI.

ha you cant just say the economy isn't effecting companies and gamers.

the economy sucks and now companies are all dying because of it.

its a fact not an opinion!!

exactly thats a very major reason why companies are getting hurt.

the ECONOMY!!!!