There’s no question that there is a lot of money in the video games industry and there are massive profits to be made. However the video games industry is changing. Now that internet connections are becoming faster and online stores are becoming more popular, people are buying games online instead of heading down to their local game shop.
Smartphone gaming is also going up very quickly. More and more people are acquiring smartphones and are playing games on them. I remember a report from last year (can’t remember the source) that Angry Birds was making $1million a month from Android alone. And they don’t even sell their apps on Android, they just have in-game ads.