No, no, a thousand times no. This is complete bullshit. I'm sorry, but you lost me at:

The proper ambition for a tech entrepreneur should be to join the ranks of the great tech companies, or, at least, to create a profitable, independent company beloved by employees, customers, and shareholders.

Nobody, not you, not my mom or dad, not "God", not Linus Torvalds, not Bill Gates, not the Queen of England, not the Dali Lama, not Zoroaster or the Easter Bunny or President Obama or the sterno bum at the corner of 3rd and Main, not Sergey Brin, not Kevin Rose, but NOBODY has any standing to tell me what my "proper ambition is." Why? Because "fuck you", that's why. You don't know me, my life, my past, my future, my dreams, my fears, my hopes, my goals or a goddamned other thing about me. Don't f%!#ng try to tell me what I ought to aspire to.

Say I build a company to a point where I could sell for enough that I could walk away with, I don't know, let's call it $10,000,000 USD. The other option is to stay independent and maybe, maybe eventually IPO. It's easy to sit on the sidelines and say "Go for the IPO, don't sell, selling is a failure". But you know what... maybe I need the money right now to do some things I always wanted to do. Maybe I want to buy my aging mother a new house, and I don't want to wait for a bloody IPO, I want to do it now. Maybe I have a family member who needs special medical care, or - fuck it - maybe I just want to cash out, fly to Scotland, and spend the rest of my life looking for a 6' tall, redheaded supermodel with a Scottish accent to marry.

In any case, no, you don't get to tell me that I failed, if I choose to pursue what matters to me.

Look, I get the point... I agree that - in general - entrepreneurs would want to stay independent, and would prefer to wait. I don't relish the idea of building a company and then selling it... but life is more complicated than that. And life is a series of tradeoffs and a constant balancing act between doing what is best for us right now versus what is best for the future. One is not a failure for making a rational, reasoned decision to favor one set of priorities over another.

Here's how fucked the games business is: Tomb Raider sold 3.5 million units in 4 weeks, and yet failed to meet sales expectations. Hitman sold the same, and Sleeping Dogs sold 1.75 million and they both failed to meet expectations. Square Enix lost over $150m last year, despite those three critically and commercially (by any reasonable metric) games coming out. Despite selling millions of copies they aren't profitable because game budgets are too high.

EA thinks that next gen budgets will be "only"10% higher than this gen. That means that gmaes need to sell at least 10% more units than current games are doing, and eren that will only guarantee the losses of tens of millions we're seeing now. To be profitable they'll need to sell far far more. On consoles that, because they are new, will have a limited user base anyway. Either that or raise the price to make up the shortfall. In the middle of the longest recession in a century.

The industry is fucked

The only way to make money from games is what Disney have done, license the IP to other companies and get them to pay for it.