If you can look at the Console market and believe, honestly to yourself, that it's in a better position that it was 15 years ago, 10 years ago, or even 5 years ago then nothing anyone will say will convince you otherwise.
But look at where development investment is going, think about where the content being made to appeal to dad, mom, grandma and little Billy is being released, hell just look at Activision Blizzard's slate and last few years of financials and then try to answer that question again.
If you STILL think that everything is fine in the Console space, well, cool then I guess.
It's less "everything is fine and dandy" vs "the entire world market has evolved, and the biggest growth region basically has zero console presence and more of everything else".
So if you're a publisher, like any of the Top 10, you double-down on your best performers, and experiment with things that might become a hit in one than one region to supplement those. It also means you're banking on those big franchises retaining their players, which by and large, they do. Less than before, yes, but it's also a state of transition for players and the market in general.
That doesn't actually mean they're dying nor will cease to generate the most income in the largest markets where they traditionally have a large foothold, yes, even in the face of mobile and everything else.
And in that gaming example, the more likely scenario is that Dad is playing CoC or Fire Age on their phone or tablet; with an eye towards Star Wars, Madden, Cod when there's a deal to be had; the kids are playing Minecraft on 1 of multiple platforms. Grandma is on CCS.
The real loser is handhelds. The family in that scenario flat out doesn't need one.
This is indeed having a huge impact, but was trying to keep the convo more on the US market since its NPD and all. But yes, resources are being funneled into development for those markets that have indeed fully rejected consoles already, including Japan at this point.
People tend to overstate the importance of Japan for console sales--they really are only important for that countries developers. The other regions, never really had them take off for a variety of reasons from government to games (like Kartrider in Korea). So not really a rejection vs never actually having a chance to take off.
Imagine if the US outlawed PC gaming, leaving only console as an option. Even if PCs were unbanned years later, wouldn't matter. That path is largely set in stone and quite hard to change.