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Been in trouble since 1983. But there's no more trouble than there was a decade ago, I'd say there's even less. The industry has branched out and become huge and now consists of several different segments with various degrees of profit margin possibilities, developers have more than one leg to stand on now if the going gets tough and there have been less bankruptcy and overall closing of studios in the 8th gen than in the 7th (which is largely due to the financial crisis, of course).
Gaming is in good health, it's just rather boring at the moment.