We could very well see a contraction. Maybe even a large one. But I don't think we can ever repeat the '83 crash. It's too mainstream now. The crash was a 97% drop.

Very rough math from random sources, but ballpark total video game revenue is about $180B. Around $30B of that is Tencent. You could loose every video game company besides Tencent and that would only be a 83% drop in the industry.

Even if a huge swath of AAA folds, the money is just going to move around to other games. No one is going to go, "Activision is gone. There's no new CoD to play. I think I'll take up fishing."

We could very well see a contraction. Maybe even a large one. But I don't think we can repeat the '83 crash. It's too mainstream. The crash was a 97% drop.

Very rough math from random sources, but ballpark total video game revenue is about $180B. Around $30B of that is Tencent. You could loose every video game company besides Tencent and that would only be a 83% drop in the industry.