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Special Note: Please note that this scenario is meant to be read as entertainment, not as an accurate prediction of the future. Also note that the viewpoints and opinions that may come across in this scenario are not necessarily the viewpoints and opinions of the author.
Nintendo, one of Japan's finest exports, caused panic among conservative Americans in the 1980s who said that we shouldn't be paying $50 per game so that the Japanese can create violent games to satisfy the adolescent male palate. In the North American offices of our cherised video game companies, we don't have designers, we have censors. They "program" stuff to make it look appropriate for Western culture. All the programming is done beforehand by the Japanese staff.
The first quarter of 2038 would signal the beginning of the end for the PlayStation/Wii/X-Box line of video game consoles. Realizing that people would rather surf the Internet, watch reality television, and play emulator games instead of spending money on their games, all the video game companies started to lose money quicker than in the North American video game crash of 1983.
The Worldwide Television Ban of 2040 also impacted the video game industry as well. Most video game consoles are connected to televisions and related materials, as the criminalization of television has almost essentially created a "criminalization of video games" as well. TV commercials has influenced the advertising revenue of video games and video games that are connected to TV sets make enormously larger revenues than internet and smartphone/tablet games.
This would be entitled the Gaming Depression (also known as the Video Game Crash of 2038 to the hardcore gamers who were born prior to 1983). Facebook Nintendo will become a home appliance company becoming very popular by former hardcore gamers. Sega would start making slot machines and divert their gaming to the adult casino world. Sony would divert their game making staff back into making new TVs and Blu-Ray players (in addition to building indoor theme parks to compete with Sega's in Dubai). Most of Sony's exports will go to Puerto Rico, Antarctica, and some parts of Russia where the TV ban was not affected. Apple would eventually acquire the people who made Dance Dance Revolution and use their technology to get people to learn how to dance the traditional dances (and make them fun at the same time). Two years into the gaming depression, PC sales would skyrocket and the sales of netbooks (which never took off in the first place) would jump up considerably. Atari would start to create hybrid vehicles mainly for the American/Canadian market and Activision would start making educational materials for the K-12 schools.
By the year 2040, video games are no longer mainstream as a result of the Television Ban of 2040 - with its role being long replaced by world beat music, interactive anime, orgasm drugs and smoking water cigarettes for the post-rock generation. The teen pregnancy rate would skyrocket by 8000% as a result of former gamers becomes sex addicts and reckless womanizers. Being a "typical adolescent male" of the early 21st century just would never be the same ever again. Only the freeware and unlicensed gaming communities continued to operate after January 20, 2038, usually from lesser known countries in the world such as Fiji and Tonga. Facebook Nintendo's Oculus VR would break even during the Gaming Depression, passing the muster as "educational simulation software." Obesity rates would finally start seeing declining numbers after decades of increasing activity. The "Play 60" programs would finally be in full force as the increasingly lackluster quality of video games finally forces children to "unplug themselves from the consoles" and go outside to a world that is superior to the video games of the mid-2030s and late-2030s.
Parents will find a way to get children off the medication that they had to take in order to halt the bad medical conditions they developed while obese. They will result to Dr. Oz's naturopathic cures to eliminate their children's juvenile diabetes, high blood pressure, and osteoporisis without expensive pharamaceutical medications. Seriously, teens have been known to acquire brittle bones through drinking diet soda.
The West Coast of North America will briefly be in a panic as laid-off game designers go through their unemployment insurance while they get re-trained to design business apps and educational software instead. Kids will learn to play baseball again in the traditional manner. Bird watching groups and bowling leagues would see an 120% increase in membership about 5-10 years after the Gaming Depression begins. Gym memberships, swimming pools, and YMCA memberships rise over 500%. Virginities will be lost almost overnight and the birth rate will see a slight rise for the next 20 years; delaying concerns about "lazy young people not wanting to have babies." Marriage rates will increase as young adults are more likely to get married and become mature adults instead of playing video games. Many young women would rather marry a "real man" instead of an "immature gamer." Professional sports will have to find other venues to promote their superstars. People who want to emulate their sports idols will have to practice their game and hope to get drafted. It won't be like playing career/road to the show/dynasty mode on a video game. People will have to get out of the house and exercise with their friends. Interest in fantasy novels and other geek culture makes a major decline as many parts of modern pop culture were based on video games.