Razor Blade Games?

Oxygen99 writes "There's a story on the BBC News website regarding the financial impact on game developers of the next generation of consoles. The article states that while the cost of producing games increases exponentially as new technology comes online, consumer prices stay approximately the same, leading to an unsustainable financial environment for many small developers. With many small development teams already hurting from the crippling costs of development for the X-Box, GameCube and PlayStation 2, what happens when the X-Box2 or Playstation 3 arrives? Are the days of small scale game development over? Will we ever see a new Jeff Minter? Will the games industry go down the route of the razor manufacturers where consoles are almost given away with the games?"