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Yeah, I wasn't sure if you just misread or if I missed another point he made somewhere. But I agree, it might actually be a good thing to see some of the giant publishers go under and see what new companies rise up in their place. There is a lot that's wrong with game development right now, even just on the business side, and most of the examples we see come from companies like EA, Ubisoft, etc. It would suck for the people who lose a job if they were to go under, but I'm not sure their problems aren't so entrenched in their minds and corporate policies that they'll actually move past them or not. Maybe if the right person with vision got the top job and started massive overhauls of how they run their business, but even that can be messy as hell, result in lots of lost jobs, and would still require someone who hasn't been indoctrinated into the way they typically run things.
And on the console end, part of the reason I get so excited about the possibility of things like the Ouya or Valve releasing a Steam console is the same thing. Get some new blood in there, get people trying to shift the current paradigms and carve out new market segments that they can compete in, or even beat the old standards to the punch with better features and services. More new entrants trying to come in and shake things up is good for everyone, consumer and industry alike.
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