2006 saw the release of the PS3. The console market peaked in 2007. And then the iPhone was released in 2007. Of course, smart phones were slow to catch on in Japan, but that's changed now.
The console market is now worse than it was in 1990. That's hugely significant when you consider how different game development has become in terms of budgets and staff numbers. In 1990, it was possible to create a blockbuster game in 3 months with a group of 5 people, now it's likely 10 times that number. But mobile titles are quick and easy to push out and the market there is growing.
