I think the problem is that PR and advertising cost have gone out of control. Cost explosion, reminds a lot of our football leagues here in Europe. If contracting a good player costs between 10 and 100 million euro, you're of course screwed if your team is not playing stellar.
As for the gaming giants, they apparently spend more money on advertising than on making games now, maybe that is not so healthy afterall.
Concerning DRM: it might get on your nerves, but em2nought is right. You get customers by offering the best possible product, not by making their lives miserable.
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