Fonejackerjon said:
I did mean AAA only, Gaming as a whole is fine, indie and mobile will survive as they are ubiquitous
Well, but you asked how it's gonna repair itself. Indie games are the answer.
Obsidian: Used to develope games for Bethesda (New Vegas), Bioware (kotor2) and lately THQ/Ubisoft (South Park: Stick of Truth). Now they're doing their own thing with Project Eternity.
Larian: Formerly developed Divinity titles for big publishers but then did a RPG the way they wanted to. And it was a bigger success than any of their previous titles
Slightly Mad Studios: Used to develop some of the Need for Speed titles, now they're working on Project Cars. And that game already has an insanely huge fanbase, probably bigger than most of the Need for Speed games.
Roberts Space Industries: Star Citizen has more funding than most games from big publishers.
What I want to say with these examples: Even if we had a big crash where all big publishers die... would there be that huge change?
The publishers will maybe be gone. But the heads behind their games won't go away. And as these examples are showing: Nowadays even Indie games have the money and scale of most 'big titles'.
Those guys behind Halo, Mass Effect, Total War... they will simply make their own gaming studio after 'their boss' is gone. And with big publishers (that get most of the money in the gaming industry) gone, people will have a lot more money to spend into these small projects and studios.
The market crashed in the 80's because those developers behind the games had nowhere to go. Now we have the internet. Internet hooray!
Also diversified gaming!