What about Montreal?
Now that's not to say that things are all bad for Vancouver. Many traditional games studios have disappeared but smaller studios have appeared in their place. Xbox Live focused studios such as Klei and Hothead for example. Microsoft bought Big Park and they're creating casual Kinect titles. Finally, Vancouver still has their digital effects industry with Sony Imageworks and Pixar opening up studios.
Aside from traditional console games I just noticed a few days ago that EA is opening up a Playfish studio in Montreal so that's another point for the Montreal column.