Gotta love the constant negativity in these forums lol

After some more thought, I think I'm wrong about this. There were a number of factors I didn't take into account. These factors dramatically reduce the chances of the market crashing.

I think one major factor is to do with the market's increased variety (not necessarily its overall size). Due to limited hardware back then, the types of games that could be made were also limited. The fact that PC games were capable of providing similar experience allowed for consoles to crash, as people could make a quick shift to PCs.

Mobile games, while their competition today could be comparable to PCs in the 1980's, does not provide the same outlet for most people. It does not allow a quick shift the way PCs did (Unless smartphones get a rapid increase in power, game quality, and more popularity among core gamers)

These were indeed very basic oversights. Thanks for the insults, as they were motivating to getting more reasearch done into this topic.

The difference between now and the eighties was that in the eighties, bad business practices had flooded the industry and were causing huge amounts of damage to consumer confidence. Now, the industry is more segregated into parts (the three first party devs have distinct identities and exclusives, people recognized big companies as separate (EA, Ubisoft, Activision, Bethesda)) which helps buffer against industry wide crash. I think we could see a localized colapse of certain portions. For example, Ubisoft could take a hard hit if they continue to erode consumer confidence in them. But that won't snowball into Nintendo, Bethesda, etc. The mobile gaming market is actually the one on the road to trouble if it continues to go down its current road.

Yes. A video game crash would, in the short term, be a bad thing. That's what would've been worrying.

But sometimes bad things are necessary to bring good things. For example, the 1983 crash, while bad for the time, filtered out the bad game companies. Companies like Nintendo were able to rise to the top.

Video games never ever been crashed before, except "CONSOLE" video game market. as for current situation video games will just evolve and changing not crashing.