A very good read on the state of the video game industry.

To survive, studios need to acknowledge the reality that content creation, curation and consumption is being democratized. For many executives in the media & entertainment industry, this concept is anathema; they believe that their veteran experience and instinct can pick ‘winning’ game concepts and turn them into blockbusters. Even if and when this is true, the final game will fall short of its potential if it remains tightly controlled. To quote Gabe Newell, Co-Founder and Managing Director of Valve: “Games are essentially going to be nodes in a connected economy where the vast majority of digital goods & services are user created vs. created by companies… Our users have already outstripped us spectacularly… They’re an order of magnitude more productive.” How can a studio fight back spiraling development, marketing and support costs? It doesn’t. It outsources them to users.