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There was a long debate in last year's class about independents not being able to compete against the large game developers because their graphics are so much better than anything an independent can produce. I argued that this is just not the case. I believe that an independent game developer (you while you are taking the class) can make games that produce more profit than high end commercial games. The dollars spent on a game does not equal fun and people play games for fun. That's the bottom line. Eye popping graphics can be a form of fun, but it is far from the only form of fun.
The game industry audience (just like the movie industry audience) is cyclical. Every 3-5 years it switches from big budget games/films to low budget games/films. I don't know why, it just does. If you are an independent developer, you just have to time the market right and have something that captures people's imagination.
Sony is getting the pants beat off them and they probably spent 1000 times more than Nintiendo. Why? Partially because of availalbility, but also because Nintiendo focused on fun and Sony focused on high end when the audience was shifting from high end to focus more on fun. It's also much easier and cheaper to mass produce lower end products. I don't believe that Sony will lose the console market leadership, but it will be much easier when the market shifts the focus back into the realm of highend. This will happen as developers build more eye popping games that really take advantage of their platform. In the mean time, they are stuck with a very tough competitor that is miniscule in size in comparison.
What does this mean for you? The industry will tell you that you cannot compete because they like to protect their market place. Don't believe it. Low budget can compete with big budget, you just have to focus on a different target and not play by big budget rules. You should h
ave a really unique, simple and fun idea in mind and plan to implement it this semester. There are no limits.