Great video with lots of numbers predicting a potential crash in the video game market similar to the one in the 80s. Some believe we're already seeing the crash slow motion. With Microsoft all but announcing that their system is going to be online only and may not support used games, I don't think they're going to be immune from fluctuation.
This is exactly what is supposed to happen in a market. It's painful, people lose their jobs, but the best way to maintain stability is to allow these businesses to go bankrupt. Bails outs compound the problem. If these companies were more willing to innovate and produce a higher quality product they wouldn't be facing these challenges.
The future looks good for indie game developers.