Video Game Industry Is Broken

Quote

Will rising costs mean increased sales? Almost every technology driven business relies on the bell curve of early adopters at the front end with high costs and small demand then a transition into the mainstream with dropping costs, increased product supply and broad adoption. Think of anything from PCs to cell phones to DVDs. The game business has the opposite trends now. Currently a minority of released titles are profitable. With the next generation development costs are increasing rapidly, which means more units must be sold of each title to turn a profit. The PS3 requires a level of financial investment that clearly puts it beyond the impulse buy of a mainstream entertainment enthusiast. Will Blu-ray be enough to drive its sales to the mass market?