Mifune said:Midway layoffs, EA layoffs, and now Factor 5 likely going belly up, and you think this has little to do with the economy.
The whole idea of gaming being recession proof is unfortunately a myth. Maybe sales will still be okay but developers will be hit hard. The gaming industry as we know it has not seen a recession like this before.
Stop thinking the entire economy will go to shit and games will continue to chug along like nothing happened. It's an incredibly naive view.
EA wasn't making money when the economy was booming, same with midway. And F5 produced a crappy game. The economy of course has an effect on these studios. But in F5s case and the other examples you listed, it was not the driving cause for what happened.