A industry crash is the equivalent of the engine of your car breaking down.
Some people would fix the car but others usually just get a new car. If the industry had one, the best possible scenario would be gaming living on as mobile gaming because consoles and probably one of the major publishers short of a Super Mario type crossover success to revive the industry would be dead and regulated to complete niche.
The industry needs to change, developers and publishers probably should all start focusing less on budget bursting graphics or media marketing for titles that are ripoffs of current market leaders and more on making unique fun experiences that can become their one Triple A products (Skylanders and Guitar Hero/Rock Band are probably the best examples). Despite the increase cost for development on HD systems, it isn't just that which has slowly lead several developers into bankruptcy. Bad decisions and management usually is what kills studios, if not corporate politics like with Lucasarts.
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