BBC News, Thursday, 27 December 2007 - by Yo Takatsuki:
Next-generation consoles have wowed gamers with breathtaking graphics, surround sound and stunning gameplay since coming on to the market in the past year.
Cutting-edge video games might be a dream come true for consumers around the world, but for many companies developing them, it's been a nightmare.
The movie-like productions on Sony's Playstation 3 and Microsoft's Xbox 360 games have meant that the cost of producing them has risen sharply.
Back in 1982, the Japanese company Namco produced Pacman for $100,000. Now, the average Playstation 3 title is estimated to cost $15 million.
With profit margins so tight, the line between survival and failure can rest on the sales from just one Christmas. The fear is that many companies will simply not survive the festive period.