This article makes total sense. With the industry adding on other types of gaming (mobile, tablet and social), its becoming harder for console studios to crank out good hits. THe development costs of the new types of gaming are a small portion of what it takes to make one console game. That leads developers to have more cash on hand, less risk, low distribution and marketing costs, compared to a console game. So now some studios are hiring people on a contract basis and then laying them off if the game doesn't do well post launch. With all of the complex mechanics in social, mobile and tablet games, its no wonder that they hire scores and scores of developers.
http://www.gamesindustry.biz/articles/2012-10-22-tantalus-industry-cant-promise-job-security
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