I didn't read the last few paragraphs but this guy is not very educated. His graph alone can completely contradict his whole article. There are periods in the past in which the industry saw three years in a row of declining retail sales however in the long run the industry only grew. Not only that, the chart is for retail only and each year retail plays a smaller and smaller percentage of video game revenue.
Yes many places have shut down but that doesn't mean the industry is dying it means that there is reorganization within the industry and it is cutting out the fat and making it more efficient for today's market. Developer studios have been shut down but each year indie developers become more and more prominent in the market. So if we are looking at the industry as a whole there is not much drop off.
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