Prices. Hands down. Why do we have piracy? Mostly attributed to the high prices people don't want to pay. Why do people not try new IPs? Because it's too large an investment on an unknown entity at $60. Why are pre-owned sales so good? Because they are typically cheaper and move easier than full price products. Why do you think Steam does so well? Aside from good service, it's the Steam Sales. No where else will you find something as good as Arkham Asylum or KOTOR for a mere $7 unless it's another digital download service. But Gamestop? Nope. Target? Hell no. Walmart? As if.
I'd say the industry isn't dying or crippled because of pricing currently. It's a problem, yes, like a hangover or a disease. Something temporary that needs to be dealt with ASAP. If this problem continues to grow, then the industry will price itself out of the business. Gaming (PC or Console) is an expensive hobby when each product you play is $60 and the device is the multiple-hundreds of dollars. Let's not forget that DVDs typically cost about $20 at initial release and drop to around $10 after a year. Books? Usually no more than $30 but I've seen most best sellers go for about $25 on average, and that's just the good ones with the advertising backing them up. And those go down in price after a while as well. However, games like Mario or Metroid, or even Smash Bros. will remain near $40 well after two years of being on shelves, if not longer. Even used, those things don't go down in price fast enough sometimes. If the industry wants to avoid a painful bunch of years reforming later down the road when these price increase start hurting them financially, they'll need to start making changes now.
I'd say the industry isn't dying or crippled because of pricing currently. It's a problem, yes, like a hangover or a disease. Something temporary that needs to be dealt with ASAP. If this problem continues to grow, then the industry will price itself out of the business. Gaming (PC or Console) is an expensive hobby when each product you play is $60 and the device is the multiple-hundreds of dollars. Let's not forget that DVDs typically cost about $20 at initial release and drop to around $10 after a year. Books? Usually no more than $30 but I've seen most best sellers go for about $25 on average, and that's just the good ones with the advertising backing them up. And those go down in price after a while as well. However, games like Mario or Metroid, or even Smash Bros. will remain near $40 well after two years of being on shelves, if not longer. Even used, those things don't go down in price fast enough sometimes. If the industry wants to avoid a painful bunch of years reforming later down the road when these price increase start hurting them financially, they'll need to start making changes now.