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We can also look at it this way:

Imagine Gen 7 ending in 2015 at a totaL of 280 million, up from 200 million in Gen 6. That is an average growth of 4% per year over Gen 6 (not entirely accurate since generations cross each other somewhat, but it gives a hint). That isn´t a huge growth, but actually quite reasonable.

If the market would start to experience contraction, money will start to pour out of the industry causing more studios to stop making games for the traditional consoles. This will also start a downward spiral in the general publics view of the industry, causing even bigger declines in sales.

I Think an average growth of 2% per year over previous generations should be acceptable enough to maintain a steady industry.