That was only one of two or three articles predicting continued growth I found by Googling "total revenue of the video gaming industry" ... common perception seems to be the industry size will be around $90bn globally by 2020 or so, so gaining on films.
The question of whether a mid-tier could become economically viable is interesting. Unlike films, where certain subject matter, narrative styles and emotional content will never be suitable for a blockbuster, if there's a really clever new gameplay idea it can always be pillaged by the mainstream (or brought to the mainstream by the group that made it up).
In the same way you see talented fringe groups - for example modding communities - in games being swallowed by studios for "official" versions of their mods.
On the other hand, the high detail 3D modelling and artistic values of contemporary games seem pretty superfluous to the whole experience in some cases, and the basics of a good gameplay idea can be implemented by a small team on a modest budget.
So maybe you will just keep seeing "breakout" indie games being made by tiny developers (Minecraft-like) rather than a mid range "art house" niche.
