I moved out to the bay with $1k just a 1.5yr ago to find a job after college. I thought it was going to be awesome. Found a job at a great company, got to meet some really great people, learned a lot, but come to find out my wife is not coping well with the new location which is really consuming time and energy. I spent the early part of this year trying to figure this puzzle out, but ultimately it is what it is.
So at this moment, I need to break away from the destractions. Moving back home in late December to the midwest where I can live on a fraction of what it costs out here. I'll have a happy wife that will have the ability to buy a house for 80k and will be with her family/friends. I plan to do consulting (which I'm already starting to build relationships for) to earn money to live / bootstrap with, and I'll start working on a business away from the gamedev train.
If building something in the midwest that ultimately brings me back to silicon valley, oo-rah. But, in the end, a location isn't going to define me.