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A crash is never a good thing.

A crash is a catastrophy for everyone, from indie, to games, to industry. 

A crash would mean that for several years, we would be left with lame consoles from companies with absolutely no way to challenge or push the boundaries, the same for developpers, and creativity.

But it's more likely that there will be a transition. Piracy and Indie gaming are helping to push this transition toward new models.