Is there a glitch that causes people to have blank posts? I've seen it twice now...

It's not the economy, it's poor management. He is using the closure of developers as a sign of hurt in the industry. But that is wrong. The industry is changing and that reveals which companies are well managed and can adapt and which companies are poorly managed and will fail. The only thing that effects the health of an industry is the demand from the consumer and it is at an all time high. Great companies will take advantage of this shift and bad companies will fail. Leaving an industry of well managed companies which will make the industry prosper greatly. 

The dynamics of the demand from customers is growing. The demand for super high budget blockbusters are growing and the demand for cheap downloadable games are also growing. If a company makes a poor decision in it's ability to develop a high budget game without being able to make a game that will sell then that company will go under. But the investment capital in the industry will not disappear it will just be moved around from one company to the next. This industry is growing and prospering like never before. The failure of a company in a growing industry only fertilizes the industry for a better company to take it's place. 

Income goes down, demand for inferior goods go up, normal goods go down.

In a recession (just started taking Macro, so not really that confident in my knowledge in it), people save their money and spend less (sorta fucking us over in the short run, although saving benefits in the long run).

yes it usually happenes when you quote someone.

i think it fails to load or something.

Pirating.

wow i dont know what planet you live on but on planet earth the economy is really bad and its made 100s of companies go bankrupt.

LMAO great signature

and funny but sadly true comment.

I think that most of the issues going on with big companies (i.e. Take Two) are just very very poor mismanagement.

Thank you, and thank you.

The costs to make games are going up while prices to buy them are going down, so each purchase makes less profit than it used to.

The solution is to either lower your costs... or find a way to get millions of new customers. (Or raise your prices, but that would be suicide in this business.)

Nintendo did both. They lowered costs by opting out of HD graphics and finding exciting new ways to use older cheaper technology that nobody was paying attention to (cheap motion controls), and they found new customers by aggressively targeting non-gamers, casual gamers, and ex-gamers.

The other big companies are trying to make BIG GIANT SUPER HUMONGOUS SUPER GAMES which cost $40-$100 million apiece. So they're trying to lower costs by firing half their work force, and trying to find new customers by drastically increasing their marketing budgets. They are losing money.

The industry won't die, but most of the companies that refuse to adapt will die.