[Richard]

No the market is cyclical, however there is a major shift going on that won't change unless folks change the overall business model.

With computer and video gaming becoming a larger business it has attracted more folks who are interested in it as just that, as a business and not as a hobby or community. These few companies and retailers are making it a very hostile environment for small or medium developers or publishers to ever make money in retail.

Consoles do well because they are relatively cheap and deliver fast paced games folks can get into and folks also don't have to worry about configuring their console or installing a game.
Since they have such a large audience folks can make a killing by making console games, and that is where the money is so companies like lemmings are jumping that way.

This might change eventually but for now small and medium developers need to relize that the Online venture is the only real way to go as long as you have a strong game title. Without the deep pockets of major publishers they will never survive in retail long enough to ever see a dime of royalties. Less than 1% of the games sold in retail today ever make their development teams a dime in royalties.