We're arguably repeating history, where 100 years ago film was the upstart (but rapidly growing) business and vaudeville was the established incumbent. Film offered far more creative possibilities and were dramatically more immersive than the entertainment it replaced.
Today the film industry is the incumbent - profits have peaked, and the upstart video game business has already eclipsed it. Once again, video games have far more creative possibilities and are dramatically more immersive than the films they're replacing.