Electronic Arts have announced that they expect a ‘forest-fire’ within the video games industry. In a report for BBC News Online, Jeff Brown, Vice President of Corporate Communications, at EA admitted that they were concerned with the increasing costs of developing games, and that the cost of developing for the next generation of consoles may increase exponentially, "The transition is a very painful process for every game developer…We look at the transition like a forest fire. It makes the healthy trees stronger, but burns away the weeds."

The financial situation at EA is becoming increasingly healthy with profits of over $500 million and revenue currently standing at $3 billion.

But Brown admits that a lot of the success can be placed on the franchise strategy at Electronic Arts, "The franchise strategy is good for the company, investors and consumers as this is a hit-driven business."

With several developers folding over the past couple of years, and with others such as Eidos expecting take-over bids, the shake-up of the gaming industry may have already started…

TVG will be bringing you the latest details on the changing situation as we get it…