This is an interesting topic and one where there will be a lot of differing opinions, which should be interesting.

Lots of talk recently about yearly releases, EA, Ubisoft, casuals, etc. Where do you draw the line in regards to franchise fatigue? When does it really become a problem and why?

I read an excellent quote today that really hit home with me... "A good video game is a thing of beauty. It’s engaging and immersive. A good game can carry you away from your worldly woes like little else besides a good book can. A good game is like a friend who will hang out at the drop of a hat, day or night, rain or shine. And like a friend who has overstayed their welcome, there is such a thing as too much of a good thing. Sometimes you need some distance to make you appreciate a friend all the more. So too with video games." - Chris Avery

On the other hand, we have Activision COO, Thomas Tippl, who said “[Franchise fatigue] is something that I have not bought into, I think it’s an excuse for lack of innovation. If you have a great franchise and you stop innovating, then yes, you will lose your fan base.”

Pretty ironic coming from Activision if you ask me.

Then, just yesterday, Take Two and Rockstar say that they won't "degrade GTA with biannual releases" and "Often times people ask us 'Why don't you come out with Grand Theft Auto every two years?' To us, that doesn't make sense, because Grand Theft Auto, every single time it comes out, is a brand new experience. You can't possibly do that in two years. And if we did that, our product would fatigue and the franchise would degrade from a value perspective."

I love their stance on this matter and I applaud them.

So where do you fit in?

I agree with the last two paragraphs completey, I think you can carry innovation in every franchise. Koei Warrior games(Dynasty Warriors) are the best examples of lack of innovation in a franchise, i'd say that series got fatigued after DW 4. Really looking forward to GTA 5, every GTA is leaps and bounds ahead in every way then the previous title. I am glad we still have some companies like Bethesda and Rockstar that put out quality games worth $60.