It probably comes as a surprise to very few that bubble ("Casual gaming now worth billions!") plus economic turmoil ("Credit crunch!") plus insane pricewars ("Now only $2.99!") has led to a bunch of companies imploding.
Playfirst gave up running their own portal recently - and comments about the price collapse problem here - and today Reflexive announced they're pulling out as well.
BigFishGames is holding on to the lead, but struggling to try and pull the prices back up with the "collector's edition" games.
And for little bitty niche indies like yours truly? Well, hopefully I won't starve. :)