Currently the industry, like everything else, has fallen victim to the credit-crunch and where this will leave some casualties, there will be some smart minded individuals will be there to turn this around and create some brilliant games. It’s surprising how well some people can work having been put under some pressure.
Employees in the industry know the level of commitment you need to make it in the world of gaming which is why it is unfortunate that there will be so many layoffs from multiple of the big companies. Where this is a shame, it makes space for some fresh minds with fresh ideas.
It must always be a challenge to constantly be in demand to make new games but with the current situation in the economy and all the job cuts, it is probably the hardest thing some of the employee’s have had to deal with.
I think that the challenges at the moment, with all the layoffs, are to be able to release the games by their designated release date. I think the industry itself will make it through the storm nearly completely unscathed and when it is over the industry will be screaming for new talent and so the hunt for exceptional artists, programmers and so on, will begin once again.