Few months ago, I decided to try flash out because it would not seem as bad idea. I went through a couple of tutorials and I must say that I've been quite impressed by how much is ActionScript 3 user friendly. Following that, Me and my friend decided to do an online game in flash.

But then I have started to read various articles about how flash is dead, recommending transition to html 5 instead. I dislike the idea of making game in javascript but if flash is indeed going down then I won't have much of a choice.

What is your opinion? Is it still good idea to make flash game?

Yes.

It will be more reliable for your users than javascript, it is almost browser independent, animations will be smooth on all browsers if computer is fast enough.

My opinion.

If you've already gotten some headway with Flash, keep going until you've released a game or two. People who play web games will still have Flash installed on their desktop (assuming it doesn't take you years and years to develop your game).

Re-evaluate in a couple years and you may decide to switch to HTML5, Unity or something else.

Flash isn't dead or even really dying. We've been hearing about the death of Flash for a long, long time now. The argument can be made that Flash on mobile platforms is pretty dismal these days (and as a result in decline when you consider the internet as a whole, mobile devices and all), but on actual computers, not so much.

So sure, you can stick with Flash. Flash still has one of the largest install bases around, and it's going to be a long time before HTML5 can properly compete with Flash in all the areas Flash excels at, especially with the varying support between browsers for individual features.

Thanks for all answers.

I really needed to sort my thoughts on this. :)

It's little offtopic, but

For development, You can use FlashDevelop(http://www.flashdevelop.org/). it's free and performs extremely well.

One good tutorial is this one for example: http://chrismweb.com/2011/01/26/creating-an-asteroids-game-part-1-setting-up-flashdevelop-and-planning/

I would also recommend reading through adobe's documentation http://www.adobe.com/devnet/actionscript/documentation.html

If you are still new and finding the way out, I recommend you to check out HaxeNME which is a much better framework with multiple platforms.