"Part of the problem there is these guys are trying to bring out games during the holiday season with the mind-set that holiday sales mean more sales no matter what," he said.

Another important factor, Hsu said, was having the capital for art direction, given the increasing premium put on cutting-edge graphics.

"If a game looks really good ... it does really change your perception," he said. "You can make the exact same game, but if one company can make it look better then they sell more products."