richardhutnik on 01 January 2009
The industry dies if the cultural perception of videogames is that they are boring garbage and they fail to entertain. If you end up having what happened with the Atari 2600 and the crash then, you can get some idea what can happen. Even after the crash, Atari still sold around 1 million 2600's (until the NES came along). I know one guy I saw at a Toys R Us who bought an Atari 2600 over an NES, because of the name recognition.
Is it possible the industry could contract? Definitely. By not sure killed. Retrench and structured smarter is a possibility though. As would be a slowdown in the release of new systems.
