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The entire video game crash thing is a pretty misunderstood phenomenon IMO.

When something is new, it often becomes huge. That happened to video games in the early 80s. Then most people get bored. In video games, that was everyone who wasn't a computer geek around 1984.

I am not convinced that gaming ever recovered from just how huge it was when it started in the 80s. It's like smartphones now - everyone has one, but the obsession with buying them is gone now (apart from smartphone geeks).  A quick test would be to ask a random person on the street if they know that there is a new console generation out - I bet most don't.