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pray4mojo said:
Lawlight said:

The same thing could be applied to movies and yet people still watch on a TV or go to the theatre. I'm not seeing any reason to think that traditional gamers' numbers are declining.

Movies have declined... by alot. One look at the inflation adjusted list and it's confirmed. Snow White and 101 Dalmations out earned Frozen and The Lion King. Actual ticket sales are nothing like they were back in the day. 

The same thing is happening in our industry. Line up all three consoles worldwide and compare them to the first three years last generation. It's down, by alot. When you look at handheld hardware, they're all but dead. So dead in fact that Nintendo saw fit to ditch their dedicated handheld business and merge it with their home console division. The writing is on the wall.

Does this mean the end? No. Like you said, movies are still popular. Console gaming will remain popular as well. But it's naive and flat out ignorant to suggest that there hasn't been a drop off. This is the first generation that didn't outsell the prior one. It's happening.

I'm the first to admit that movies have declined... at the cinema. Not at home with the rise of streaming. Mobile has not replaced that. There will always be experiences that cannot be replaced by a phone. People would rather watch movies at home on a big screen rather than on the go on a phone.