Bah, that's just an excuse cooked up by the suites to earn more money. Companies that go out of business do so because they aren't selling enough of their product, not because they aren't paying a license fee.
All these fees do is completely illiminate free enterprise and independant game development.
When was the last time you saw a truly original game on a console? The sheer cash and development weight of the giants simply cannot create the diversity of an open market.
Ironically, these license fees are an example of capitalism defeating itself with capitalism.
God created the world in 7 days, but we're still waiting for the patch.