“For retail PC games, I think the biggest problem is World of Warcraft,” Sullivan said. “It is such a compelling MMO game that it sucks up a lot of money and time that would normally be spent on other retail PC games.”

On the subject of the PC game industry as a whole, Sullivan feels the biggest problem, as on the console, is rapidly rising development costs. Games, he said, have to sell a lot more copies now to cover their development costs, and he knows getting all those extra sales can be difficult.