It's scary to hear how bad things are going for PSN and XBLA games. I know the bottom fell out for WiiWare, but I didn't expect a total digital crash in 2012.
I guess there's no middle-ground left. There's an audience who will buy big $60 boxed games, and an audience who will download $.99 and free apps. The $10 impulse buy is over? Legions of fans bought Trials and Minecraft Arcade this year, but unless you're a known quantity you're boned.
2000 MSP for Minecraft on XBLA and it sold over 1million copies ... about a week before that Trials Evolution broke all previous records on XBLA and was 1200 MSP. There's too much hyperbole going on in this podcast... (it was awesome though and if it were up to me Paul would be a regular on the Bombcast).
800MSP should be the middle ground, but 1200MSP became the new default. When I see games at 800MSP I'm far more inclined to buy. Plus MSP are more expensive just about everywhere outside the US so that kills it too. The App Store is (slightly) more uniform at least... XBLA and PSN aren't dying, but they are taking a hit as games come out on multiple devices at more competitive prices. Sony and Microsoft need to react faster... don't get me started on Nintendo.
I'm going to say that a couple of successes does not constitute overall success for the services. A vast majority of the games on both stores go completely unnoticed.
On a side note... If anyone reads this, does Paul sound like a British Dave Snider?