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Gamerace said:
Minus Nintendo and the industry has been losing money for years. EA hasn't made a yearly profit since '04 I believe and most developers show losses more often than not. Activision wisely bought the golden goose WoW but otherwise it would be struggling too.

Isn't there bound to be fairly wide scale contraction if this continues?  I am not going to say Crash of the Early 1980s level, where the entire industry collapsed, but maybe some major restructuring, particularly if venture capitalists stop funding things.