I just assume this isn't anything special. Whenever a new industry is developing, often more businesses get involved than said industry can support. And what happens? The weaker ones have to go under and drop out of it. Weaker doesn't mean the ones with the least capital, either.
The good news, though, is that it's still possible for just about any start-up to get involved with the industry, create a great hit, and get a jump-start into games. The reverse is true, too: Make one flop, and you're out. Still, it's a type of survival of the fittest, and that's never a bad thing.