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liquidninja said:

Some of you have this false impression of the video game industy growing for the past few generations but try factoring in external trends like: Population Growth, Territory expansion, Economic expansion, or the previous generations of gamers growing up to have more money to put into gaming.

In 2005, shortly before the 7th gen began, Reggie Fils-Aimé gave a more realistic picture of the video game market since the 8bit generation:

 

This slide says it all. U.S. Household Penetration (the white line) has been stuck at around 30%. And this only factors in population growth and duplicated ownership


When I tried to play the video, it said "Stream not found".