Shock and Awe Tactics on GamesIndustry.biz is an interview with 2K's Christopher Kline conducted at the Paris GDC. A portion highlighted in this story reflects Kline's commenting he does not feel the current game market can support the middle-ground between high-budget games and lower-cost budget titles that is often the purview of independent developers:

"I think what we realised, which really started that transition back at Irrational, we were doing games that I'd say were mid-budget - maybe USD 3-4 million - that there was no real market left.

"You'd have to do something like what EA is doing and go into the casual market, or you've got to go for a really big blockbuster - just because of the economics, especially for the small independent developers, you're really squeezed out of the middle.

I think you can probably still get contracts for that kind of work, but there's not a lot of hope there for developers being able to survive - just not enough money to develop new IP and keep staff going.