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.