Joi Ito has an excellent post specifically regarding the game industry but generally about business (and design) titled “Talking to the game execs” (Link). Here’s a couple of excerpts:
The sense that I got yesterday was that the gaming industry was basically the same mass production and mass distribution content industry machine that Hollywood movies and television are. And… while there are certain companies and individuals who are bridging the gap between the gaming industry and the Internet, the gaming industry is making the same mistakes that the content guys have been making since the beginning of networked computers. They ALWAYS over-estimate the importance of the content and vastly underestimate the desire of users/people to communicate with each other and share.
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