SimonG: I disagree (at least to a certain extent). First of all I would say it's pretty clear that piracy is at an all time high right now. But still, Indie gaming (which is most often DRM free anyway) is also at an all time high, which shouldn't make sense.
But it
does make sense. When half of "customers" opt for bittorrent, the magic break-even point is more and more difficult to achieve. Making trying anything new more and more risky venture. Even big companies
do try this now and then, because they
know they need new franchises as well. But they can't afford too many 50 million flops between know successes.
The creativity and will to innovate is still out there though, without publisher support there's only the indie way to go. You work for a year or two and hope for the best. Some come out on top but on average the production values just aren't there, a few guys in a garage just can't match a team of dozens. The successful ones tend to go with a highly stylized less labour intensive route. World of Goo was awesome, but what works in a casual game doesn't work in AAA titles.
You see creativity, but you won't see anything of Mass Effect production values from indie scene.
And hey, the early cartridge games and such. The cost was high and the content was low. Nice to play and all, but they were usually something a single developer or a small team cooked up in a few weeks. Now the developement costs are 100 times as high, yet the prices have remained the same or gone down.