I'm sorry for going OT, but I'm so sick of hearing this "competition is a good thing" line.
Competition is a good thing when consumers have the willpower and know how to properly identify their needs. Competition can be an absolutely horrible thing when consumers are weak minded, often time biased and susceptible to price and message manipulation (see: US medical industry, credit card industry, etc.)
Good competition has to be proven and be performed.
In addition, competition does not guarantee creativity. If anything, in a saturated market, it can create an anchoring effect...("COD is selling like crazy, let's make our games more like COD.")
Is competition always good?