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Metallicube said:
It's not like people are making this stuff up out of thin air. Just look at the alarming amount of consolidation and developers going bankrupt. Coupled with a recession, and skyrocketing development costs, it's easy to see why some can see a grim future for the games industry.

Will there be an all out crash reminiscent of Atari in the early 80s? Probably not, but I think we're going to see a situation where less and less full retail games are released, even more companies buying eachother out and going bankrupt, and an influx in free to play/ micro cell phone type games for I also think there's going to be a major decline in sales overall, as people become less interested in the same types of games, and find it increasingly difficult to justify buying yet another piece of hardware for - just for better graphics and social networking. Not a crash, but certainly a gaming "depression" for lack of a better word.

The poor sales of Vita, Wii U, and 3DS (outside Japan) are a sign of things to come. They are not going to be the exception, but the NORM. It is no coincidence that these also happen to be the three most recent platforms.

It's defintely a valid point and I understand your reasoning, but I must disagree. The Vita, Wii U and 3DS all have their own reasons to have such poor sales. I honestly don't see this as a sign that gaming is getting weaker and a  videogame "depression" is coming.