If the video game market is growing, that means the quantity of people playing games is increasing. Perhaps what's really happening is that a new category of players are being captured by the modern video game market, and that 'old school' video games are still alive and well. I mean, there are still great video games being released. Maybe the audience for those hasn't really changed in size as much.

A year or two ago, I watched @shroud (on Twitch) play Squad. I'm not a fan of playing shooter games, but wow it was quite a spectacle to watch! There were tiers leaders on your team to report to and receive orders. Anyone could pin enemy locations on the map. Every squad worked as a team to capture territory. The play development was entirely organic. etc. etc.

If anything, I hope someone carves out the 'old school' market from the belly of the beast and creates a name or brand that that market can rally around. It seems unnecessary to be concerned by the modern video game market. They are catering to an entirely different type of player. It doesn't matter that it's more profitable if they aren't taking away your audience.