Not to mention that right this moment, there is a brand new market that is expanding.
Aging gamers.
Us old farts don't have the twitch reflexes to successfully play, say, Overwatch. We loves us some superheroes. And with the kids grown and if not gone, at least no longer needing adult supervision and carting to soccer games, we have free time again.
Look how many "retro" versions of games are back.
The fact that they didn't see this coming just shows how narrow and restricted their focus is.