5000 staff members? What are you talking about? Niche developers don't have 5000 staff members.
If you actually read what I said, you would see the letters EA in there.
Instead of putting them all onto a few hugely expensive AAA games, you can spread them out onto smaller, less expensive projects
And what happens when those all of those games do not break even? Spreading out 5000 between different projects does not magically reduce your expenses any less.
Problem solved
Nope.
If you haven't noticed, most big publishers are bleeding money. EA had Q3 loss of $641 million
There's a lot of reasons why, it's nothing so simple as "oh geez they should be listening to Jerykk and making indie games!", that's just retarded.
Maybe it's because they (and so many others) only make huge investments that can't pay off unless each game sells over 3 million units. Hollywood studios realized long ago the importance of having a diverse portfolio
Again, it's not so simple and I find it hilarious you cite Hollywood as an example when that's probably the WORST possible example you could have used. Hollywood is not responsible for the majority of movies you can find on dvd. Yep, read that again so it sinks in. There are a few distributors and production companies who specialize in bringing over foreign or developing independent/low budget film but the majority of the big Hollywood studios do nothing but churn out big budget films.
Honestly, you sound like you didn't really think about your response at all beyond "Hey, I want to contradict Jerykk!"
Honestly, you sound like you really believe the idiocy of moving 5000 people around somehow reduces your expenses. Independent companies will fill niche genres, there is zero need nor room for companies like EA to move into them. They are not only not setup to handle them but typically have little experience with them as well. There is more than enough room to accommodate both niche and "blockbuster" companies in the industry, the industry has done nothing but GROW for the past decade in fact. EA's individual mistakes do not apply to the entire industry, other large publishers posted gains and profits last year, a fact you neglected to mention. Their largest competitor Activision is doing quite well on big box titles and sequels.
The reality is that you want more innovation and think that this can only come from the independent side of the industry. Maybe you're right, maybe not. That side of the industry is already producing content, some of it outstanding but you don't seem to satisfied. I think the truth is that you're impatient/selfish and just want what you want when you want it. Nothing wrong with that as a consumer but unfortunately as the song goes "You can't always get what you want".
I want the next Planescape Torment as much as the next guy but the industry needs time to evolve out of it's current state, the independent side is especially green.