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bumidan said:
Demographics.

One of the reasons for the crash is because there was not that many children in those days - the baby bust generation. (North America)

however, given the more children currently in North America than that period (Echo Generation), then this corresponds with more people buying "video games", along with the core group.

 

No, that wasn't an issue.  Have you ever heard of niche markets?  Some companies sell only 100 products a year and are still very profitable.  More consumers help, but it certainly isn't essential.