Late Nintendo President Yamauchi predicted the course of the industry and time and time again. He was never wrong.
We are past the point where if a game doesn't sell well the company who produce it is doomed.
"I have been saying this for some time, but customers are not interested in grand games with higher-quality graphics and sound and epic stories. Only people who do not know the video game business would advocate the release of next-generation machines when people are not interested in cutting-edge technologies."
"There are many companies with the technology to create game software. However, truly talented and experienced individuals are extremely rare. The fact that there are few people who can create excellent games means that there are many who can create subpar games. If we leave the market to such people, anything with potential will be destroyed. The more companies compete, the more they will inevitably produce a large number of games, trying to win with the variety of software. This leads to a flood of similar, subpar game software in the market. When there are many subpar games (also known as 駄作), consumers become uncomfortable. Once that happens, the entertainment market will collapse in the blink of an eye. In order to prevent the market from collapsing due to subpar games, we had no choice but to "monopolize."
I can see in the next 10 years that games as a whole will deflate and only the small scale games like indie and AA games will strive. Games cost too much to development and will see game companies like Ubisoft fall and collapse.