Yeah. I can see the industry is experiencing that already. AMD has always made more money than Sony from each PS4 unit sold ($18 for Sony and $100 for AMD when it came out). With the significant price cuts since, I doubt Sony is even making a dime now. Not that they ever did with previous generations, though. But trying to compare the current console giant this gen to the 50 Million units the Wii sold within roughly the same period (2 years and 4-5 months), Nintendo actually profitted from each individual sale of the Wii up their 100th million sold. And thay was 7 years ago; with inflation adding insult to injury.
I know it's a vague comparison and example, considering DLC, the shift towards dowloadable and streamable media, online gameplay and overall software sales (not to mention mobile and PC gaming).
And again, it's when I hear that Sony is not even working or considering a PS5 that this video game crash seems more imminent than ever.
And I agree. Considering the path the industry is taking, it will probably be a positive thing. I foresee a future where none of the gaming giants are making dedicated gaming hardware with physical media, followed by no gaming hardware at all.
And don't get me started on physical media retailers...
The RetroVGS is a joke by now, but I really see some random clone hardware developers climbing to the top one day and making Physical media available through some random near future console, just at a smaller scale. With many others like it doing the same after that: enter another market crash (if it wont be considered by then part of this same crash).
Oldtimers like us will end up seeking physical media. But most hardcore gamers (including ourselves at some point) will dive into the world of PC gaming. And I dont like this future.

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