The good news: The game you are working on is brilliant, amazing, and from a theoretical game design perspective, is worth every ounce of blood, ingenuity, ignored interpersonal relationships and effort you have poured into it.
The bad news: Some kid using Game Salad just made a Zombie game in 4 hours that will surpass your creation, statistically, in every conceivable, measurable way.
The good news: "13 year olds on New Grounds" have been overtaken as the target audience of choice for your games.
The bad news: They have been overtaken by the new target audience : "8 year olds on their parent's iPhone"
The good news : $.99 cents is losing ground as the price-point of choice for mobile games.
The bad news: Free is the new $.99 cents
The good news: Angry Birds was a surprise success.
The bad news: It probably won't happen to you.
The good news: You too could be that 14 year old who got his game to top of the iPhone charts.
The bad news: Lotto tickets cost a $1.00 each and you will have a better chance with those.
The good news: Apparently in-game ad sales are on the rise thanks to iAd.
The bad news: Thanks to frequency caps and eCPM of $.01, I think we all know how this story ends.
The good news: Atari sold the movie rights to "Missile Command"
The bad news: The movie script you have been painfully crafting for the past decade has just been surpassed by a concept with less depth than "Frogger: The Movie"