I've been in and out of the video game industry so many times. I hate it. There are so many things wrong with it. It's a horrible industry.. it has the highest technical requirements of all the entertainment businesses, but some of the most inept people out there. There are powerful weapons for keeping IP - copyrights, trademarks and patents, but the game industry is either not using them properly, or abusing the hell out of the system. They aim for the short-term instead of long-term, as soon as they get something profitable, like gore or guitar hero games, they milk the hell out of it. Games journalism is horrible, with very little credibility.
Being entertainment, it has the potential to reap huge profits, like the movie industry. Spend a few million on a high budget game, get more millions in return. The potential market is huge - everyone loves interactive entertainment. Horror games can be way better than horror movies. Date games can work better than date movies. Action also works better when you're a part of it, rather than sitting back and watching.
But everyone is content with milking the cash cow until it bleeds. Game industry companies have a notoriously short lifespan. Atari died from idiocy. Midway died recently, after people just stopped buying it. Plenty of other publishers and developers go down throughout the years and most of them just deserve it.
Indie game developers are equally bad. Everyone believes that their platformer is the next Cave Story; their puzzle game the next World of Goo. Very few take a realistic outlook, you have dozens of gamers whining that piracy hurts too much, and insisting on high prices. Hey, if people aren't buying your game at the price you're asking, either it's too expensive or it's not good enough.
Nobody is taking a proper solution. Everyone is taking the easiest, shortest way out. Games can be a wonderful medium. It's hard work, so I understand why people would want to take an easy way out. But all of the entertainment industry is very hard work. When a singer or an actor retires with their millions of dollars.. they deserve it because of their hard work. Game industry people are lazy. They want to work from home, they want flexible hours, they want to get maximum profit with minimum creative effort.
Some exaggerations and generalizations, but it's how it is overall. I'm probably doomed to return to the games industry again, but hell, I hate it. You can spend years making a game that's possibly bad, possibly superb.. or you could spend years making a game that uses a proven formula. Guess what companies and indie game developers are going to pick?