If you have a solid track record in the industry then you don't need a degree. But if you're a wet behind the ears programmer-to-be with no prior job experience then you'll be in a bad position. Exceptional, naturally gifted software engineers in such a position can manage to get by through demonstrating their talent in some way (e.g. contribution to a major open source project, perhaps), but the average developer is at a severe disadvantage compared to his degree holding cohorts.