The video game industry may be headed toward trouble. One main reason is that tablets have provided a very economical entertainment for those who like game playing. Apps are available for free for handheld devices, so the prices of games suddenly can look very high in comparison. That being said, the video game industry has done innovative things that simply can't be done with game apps, such as the Wii and its motion detection. Still, they will not appeal to as many players, as people who aren't avid gamers may find more economical ways of game entertainment.
No, the video game industry is not headed for another crash along the lines of the infamous one from 1983. Video games companies are selling more systems and games than ever, and Nintendo in particular has been working to make video games accessible to those who do not normally play games.