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The simple answer is that you only looked at certain games to make a point instead of the industry as a whole. A typical case of confirmation bias.

Just like music artists can't sell 100m copies like Micheal Jackson did with Thriller, games tend to sell less than they used to. Why? Because people have more options. So while back in the day everyone would listen to MJ, now they listen to all sorts of genres and artists. They also buy digital singles much more than albums (or even use youtube/spotify).

Same with games. Digital sales have risen. The average gamer, thanks to f2p games on mobile and tablets, as well as all the indies on PC, has a lot more options than (s)he used to.

So in order to talk about a crash, you have to look at the total sales numbers. How much money has been spent on consoles/handhelds/pcs, dlcs (which didn't exist back then), microtransactions, and services like Gold and ps+ ?

That's a serious question, btw. I'd like an answer.