Consoles, as we know them now, are slowly draining the life out of developers. It may sound like a doomsayer statement, and in time I may re-evaluate my opinion, but that is the landscape as I see it right now.The problem that we have is purely one cost. The barrier for entry in console development is monolithic at the best of times, and doesn't seem to be improving any time soon. All development comes with a cost, having to make payroll for at least a year is difficult at best. But consoles come with the added benefit of paying for development kits, extra hardware and licensing fees. Oh! And not everybody has the same console, so you better get some people working on that PS3 version of your game, and a new round of dev kits, hardware and licensing fees on top of that.
You start to wonder how a developer survives in this environment. And judging by a string of bankruptcies, not all that well.
The trouble is, it's only getting worse. Higher graphical fidelity breeds higher development costs, and even more difficulty and costs in moving it to a new console. A new console cycle increases costs while simultaneously shrinking the market, it isn't a great combo.
Then you look at PC Gaming, and most of these problems seem to melt away. Development kits are nonexistent, as most work can be done on your standard hardware setup. You have no console manufacturers looking for licensing fees(publishing is a different game altogether though), and the barriers between you and your customers are significantly smaller. You can still go the traditional publisher + retail/digital distribution method, but smaller developers have enormous options in distributing and advertising the game themselves, or perhaps taking advantage of Steam Greenlight.
But there's always a catch. In exchange for this lowered development and distribution cost, you'll find a higher cost for entry on consumers. A gaming rig will cost you $1000 or more, not many people will have that kind of money to throw around. So alas, PC gaming also comes with a smaller market, and as such lower earning potential.
This is why something like the Steam Box is so appealing in my eyes. An easily mass produced, lower cost gaming PC could be the proverbial golden egg. It would seem to have less restrictions than a traditional console(at least from what I can gather), and would provide a much simpler and streamlined development environment for any aspiring developer. By lowering the cost of entry for the PC market, you may just take down that final barrier holding developers back.
Even further, the lines between PC and console gaming will begin to blur. What is a console if not a computer with some Microsoft/Sony/Nintendo decorations and restrictions? The more gamers we get on a single, open platform, the easier it is on developers. The easier it is on developers, the more quality, engaging and unique games we are bound to get. Simple math.
Oh, and then everyone could revel in the Steam Sale madness, and that would just be endlessly amusing.
