Edinburgh Interactive Festival chairman Chris Deering has warned the games industry that it must look for new revenue sources as development costs rise and software sales fall.
In a speech opening this year's EIF, Deering said, "Traditional revenue sources will not be sufficient to fund games development. If you look at the very narrow definition of the gaming market, people are saying the software business will be down 20 per cent by 2011 versus this year.
"Something is going to have to be there to make up the difference and take us beyond that threshold," Deering continued. He observed that major games can now cost more than USD 10 million to develop - and up to USD 100 million in the case of titles such as Grand Theft Auto IV.