this post was submitted on 07 Feb 2026
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Definitely a shrinking audience for AAA games, but I don’t think it will be too bad gamers overall. Consoles will keep marching forward, as will Valve with the Steam Deck and Steam Machine.
I think the highest of the high end graphics stuff has long since hit diminishing returns. You can do a hell of a lot with yesterday’s hardware and less-than-bleeding-edge process nodes for newer hardware. Consoles have never used bleeding edge GPUs and they’ve always done fine with sales (across the whole market, if not always individually). I think we’re highly unlikely to see a repeat of the 1983 gaming crash.
They do fine in sales because the consoles sold at loss and they make money on game sales.
Microsoft, Sony and Nintendo would love to stop producing consoles and start selling you monthly service via a thin client. They just need a ready to go platform for it to gain enough mass first.