Is shrinking market size all that bad?

[MikeRox]

sundin13 said:

But smaller market size means less potential customers....if a Dark Souls game can sell 2million with a 160mil install base, how much can it sell with a 60mil install base at the same point in a generation? Install bases aren't everything, but if the market was smaller than it was, would Dark Souls have still sold as well as it did?

I agree that developers need to find ways to cut costs (Dark Souls would have been the same example I would have used of someone doing it right), but smaller market size doesn't really have much to do with that. Its all about development philosophies and business goals...

2 million if those users are still part of that smaller audience.