Publishers definately need to die. They are middlemen and while they do take part in distributing games (and thus get all the money), they ultimately take advantage of both parties by giving gamers what they dont want, and giving developers a set amount of payment (they dont get a % of sales) and often inflexible release dates.
I dont want to repeat myself, but this is why Steam is the key to PC gaming's future. Developers can make games they know gamers want instead of being told by marketing groups hired by publishers. It may require a large initial investment of money for a startup company (renting a building, buying a game engine, etc) but if the game is successful, they have a solid future. And that, imo, is what business is all about...putting your best product out and making money off of it due to its quality, not becuase it fills some void. With the failure rate of startup restaurant at 90% in most cities for comparison's sake, I dont think it would be too difficult for a group of ambitious artists and programmers to get funding to make a game.
I guess to sum up, I Feel that games have gone the way of "pop music". Stupid, watered down, and ultimately unsatisfying...we need "music" driectly from developers published by developers.
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