It's amusing that I actually predicted this in one of my older posts, while it comes as a surprise to The Escapist, a magazine which often catches industry trends early. At the time, I said basically what this article is pointing out now: that the hardcore would be needed in a recession, and that this Wii-induced shift to the casual would be harmful in the context of the financial downturn. I concluded at that time that the industry would essentially "come crawling back" to the hardcore audience on some levels.
To me, it's obvious that no industry is "recession-proof", except the industry of gold-plated pianos constructed solely for Bill Gates. And such products should not count as an "industry".
Let's look at the consuming audience of gaming, because that's really the reason behind all of this. As I've just demonstrated, the upper class, particularly the very rich, are not high in number, and don't consume ordinary resources to a disproportionate enough degree thanks to limits on the time they can spend playing games; when you're running Microsoft, do you really kick back and play a 360 when you get home? Will you really have time? Exactly. And even if you did, there's just not enough hours in the day to use all of that income on media and see it all.
That leaves the lower class and middle class. Lower class is out as well. The reason why this is isn't always obvious to the middle class, especially after a long economic boom like the one we just had for ten odd years, but in essence: games cost far too much. In Australia, it's $100AUD ($82.32US) for a full-price game. That's a whole day's work for our minimum wagers, before tax. There's just not enough for games to be accessible to them, particularly when considering that groceries for three people go for about twice that, weekly.
So the industry is left with the middle-class, who get tight with money when they're paid less, when they suffer the chance of losing their job or already HAVE lost their job, and have plenty of essential things to spend money on, like mortgages in Australia or health care in the US. And all of these pressures are focused on that class right now.
This "bottlenecking" of the wallet flow will always hit every single creative industry aimed at that economic class, even if the products are very expensive and intended for the upper echelons of that class. So, the hit might be less powerful with games than with the cinema, but that's only if there remains a hardcore audience. And unfortunately, the hardcore has had very little reason to be impressed with what the industry's been releasing in the last generation.
"Eternal growth", as the industry giants who called themselves "recession-proof" dared to postulate, never abided anyone as an economic philosophy. I wish the industry luck crawling back to stability.