Being a small game dev. company is still hard no matter what people say. Even if you charge less, give away source code to the whole game, dev. tools, no DRM, etc. people still compare your game to things like Crysis and WoW and expect that level of quality no matter who you are.
Here is our shameless plug to enter the gaming market:
http://magrathean.ca/project/incognito
We never thought of this, but marketing the project will actually be harder than developing the game (which took 12 months). It will probably be another year before we can generate enough sales to create another one. One has to be optimistic at all times
:)