I've been made aware that traditional design studios and agencies are dying off. How sad...truly. It's what I've been wanting to create.
What is causing the fall? Micro studios and freelancers. When you think about it makes sense - why would someone pay for all the overhead of a studio when you could cut out the middleman and hire the designer directly.
There will still be ways to create an agency feel though, it comes in the form of what I call a "freelance spiderweb"