You're absolutely right D. However, in an age where a game like Peggle can keep me just as occupied and entertained as a 60 dollar blockbuster, I think you're going to start to see a shift in the way games are made.
I think also, with even bigger publishers like EA and 2K Games using Steam, GOG, and other digital distribution methods, we might see more games and publishers avoid retail period. Maybe publishers will publish limited copies of these kinds of products to retailers, in the future? I like to have my games in a case, printed manual, and all that jazz, too -- but, is it really necessary with most games? Most games, you can pick up and play, these days -- especially since they have built-in tutorials and all.
Also, why would a publisher print say a game manual, a game disc, get a case to toss all this in, and other things if they can save money and feel they don't really need to? We can do most of that ourselves, as long as they supply us PDF digital manual and the full game EXE file/folder/GCF file(s)/whatever.
I hate to keep harping on the economy, but it's really having an effect on the video game world. I think companies have started to struggle with putting millions into the development of a title only to see it underwhelm, so you're going to see less blockbusters in the following years. The Wii success does nothing but facilitate it unfortunately.
This could be very likely, yes. With a lot of companies cutting staff members, we might see more games made by much smaller teams.
So yeah, I agree with you that we all want the big budget titles. But I can also tell you that the money I spend on them will decrease. Either by not purchasing or waiting until they get cheap.
I usually wait for most of them to get cheaper.
Every now and then, I'll break the piggy bank and pay full price for a PC game upon their release date -- i.e. Bioshock ($40), Fallout 3: Collector's Edition ($70), and The Witcher ($50).
Most games, I try to spend $20 or less on.
There's a handful of games I will spend $30 on.
$40+ games, I try to not buy many of those. Only something I deem extremely special or been waiting on for a long time where I feel I get a lot out of milage out of, do I spent this kind of cash on a game.