Well, parts of it are. Online Subscription services and in-app purchases are growing fast.
However, videogame sales dropped by 10%, Gaming hardware by 8% and Videogame subscriptions (like for WoW) even dropped by 24%.
In other words, less games are selling, but that's getting outweighted by what they sell afterwards.
That's the significant one for me.
Hardware sales should be expected to decline towards the end of a gen, no surprise there. Game sales could be down just due to fewer popular releases than the previous year, it doesn't mean too much by itself. That's a pretty big decline for MMO subcriptions though! I wouldn't be surprised if the MMO market itself never declined at all (due to microtransactions) but personally I've always found subscription based MMOs to be of much higher quality than F2P microtransaction focused ones so it's definitely a big negative to me.
Keep in mind gaming hardware also includes PC gaming hardware (though not sure what falls under that classification in detail)
According to VGChartz, the Physical Videogame sales in Germany went down by 8%, mostly because the 3DS and PC games lost a lot. But the losses of the 3DS are more than compensated by the meteoric rise Switch game sales and PC should just been moving to digital. Also keep in mind that with the move to digital sales in general the 8% drop would probably translate in flat sales overall. In other words, I believe that VGCharts German 2018 software sales are overtracked with this new data.
MMO fell because WoW can't keep it's playerbase anymore. It's decline is slower in general because the game was growing in China for a while, but outside of it WoW is coming down very fast now.