In a recent interview, Epic Games president Mike Capps discusses the myriad challenges facing developers, most of which he attributes to the uncertainty the industry is now facing.

Speaking with Gamespot, Capps discusses everything from the fate of triple-A games to microtransaction and subscription-based models for selling games. The common theme running through most of his answers is that the industry is a transition period, which makes it hard for developers to know what to invest their time and money in -- especially in regards to big budget retail games.

"It's hard to know exactly what's going to happen," Capps said. "We're bullish on the next generation. We're excited about it. But there's a big risk that nobody cares because they're all too busy playing [Zynga Facebook game] Empire and Allies, and they don't need a next-generation console box. So we're a little worried about it, and you see us experimenting some in the mobile space, partially because that's where the developer base is moving to."

Capps will be sharing more of his views on the industry at this year's GDC Europe, in his keynote speech, "Size Doesn't Matter: How Epic Brings AAA Attitude to Every Game, from Gears of War 3 to Infinity Blade" on Tuesday, August 16.