Our economies are based on continuous exponential growth. And honestly? I don't think there's still much room to growth with titles like Halo anymore.
You have to add new demographics (as Sony was/is doing with the PS2 in Europe mostly, and as Nintendo did with the DS and Wii all over the world), entire new countries (like Sony did in Europe with the PS2, and Nintendo apparently wants to do now with China - we'll see how that one goes) for that to happen.
Because if you don't do this, there will be a crash. Actually, I agree with Shams - there will be a contraction coming anyway. This only softens the effect. But at least on some "demographics" there will definitely be a crash.
And to me, the fact that I'm with Entroper in having bought almost as much first year Wii titles as I did N64 titles for the entire generation (and I would've bought even more had I the time/money to play them), is proof enough of that - there are just too many games coming out right now, and there won't be enough dollars to pay them for.
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