I'll vote 'Other' simply because it's not something 'we' or 'they' are doing that's harming the gaming industry, it's a co-operative effort.
The Gaming industry is waning because fewer developers are putting the same effort into making great games like they used to, in terms of story, character development, inter-play, ect... and are instead focusing on graphics and gore (at least in most new games).
The modern-gaming crowd is enthralled by this new-found ability to count the inches of intestine flowing from that minotaurs insides, but have taken to pirating instead of purchasing, in the belief that it's somehow more cool.
The older gaming crowd has noticed the steady decline in video-game quality and has primarily stopped purchasing new-gen games. Some out of principle, others out of genuine distaste for new games.
While I will admit that there are game developers out there that have retained some of the original zeal in terms of quality video-game production, and there are new-gen gamers who prefer older, higher quality games, as well as old-gen gamers who like the newer, lower quality games that are the norm these days; the prevailing fact is that the decline of the gaming industry is being cause by slowly shifting priorities in development, coupled with an old-style of thinking clashing with a new-style.
If game developers quit putting so much effort into smooth graphics and the immediate 'blam-effect', and more new-gen gamers learned to appreciate the subtleties required in a truly High-Quality game, the industry wouldn't suffer as much.