The Game Industry at the minute is, well, not too good mainly because of the recession, and like most places of work and industry there aren't too many jobs going, so like most people on this coarse I'm a bit worried. However the industry isn't in such a bad situation as some other industries or bossiness's. This also shows what the major issues of the industry are at the minute, no, or less jobs.
However this article from http://www.gamasutra.com/view/feature/3612/analyze_this_is_the_video_game_.php which basically claims that although the gaming industry has many followers, and people who are willing to spend their money on new releases, that this industry is not untouchable, and even though people are still spending their money they are just spending less of it.
This next website http://www.gamesindustry.biz/articles/games-already-impacted-by-recession-npd says where the industry might have been if it weren't for the recession, it says that the industry is still growing but would have alot bigger if it weren't for the recent economy problems.
Another problem facing the industry might be, where to go next? how much further can the quality and the upgrades with the new consoles be taken. At the minute the graphics quality of the newest games are already extremely high, so how much better can they make them. Also wit consoles like the Wii which makes the user more involved and active in the playing of the games, where will they go next? and how can they make the player become even more involved and in control of how they play the game.
A problem for people trying to get into the industry, is that it will become increasingly difficult to get in, as the employers will not be taking on substantial people and will be looking for the best which forces everyone to become better, this i don't think is so much of a problem because if everyone is getting better games quality will also increase.