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The market is growing faster than ever, but only if you widen your view of gaming = consoles. Mobile (as in phones) is growing by leaps and bounds and in many countries has overtaken dedicated handheld gaming devices.

Think of it this way, the Earth's population is still growing, on the whole people are becoming more affluent with more disposable income (looking at China, India and Eastern Europe), so the overall gaming market will continue to grow. Therefore, even with a decreasing share of the overall gaming market (purely because of the bleed to mobile gaming which I feel will occur the most in Nintendo's former customer base more than the others.), dedicated gaming consoles will continue to at least remain static in market size.