Former Epic Games design director says situation bleakest since '80s crash, claims Nintendo could become software-only company.

The game industry is in a state of turmoil that has not been matched since the 1980s crash, former Epic Games design director Cliff Bleszinski told GamesIndustry International today.

"This business has not been in a state of transition like it is right now since the video game crash of the '80s. I really think we're in a massive state of turmoil," Bleszinski said.

The developer, who left Epic Games in October, also claimed that Nintendo may exit the hardware business after reportedly selling just 57,000 Wii U units in the United States in January.

"I think Nintendo could possibly be faced with the situation of becoming a company that only makes software moving forward," he said. "I think Sony and Microsoft are about to come to major blows. But at the same time, people love playing games on their iPad."

"The PC is going through a wonderful renaissance right now," he added. "I think we're ready to do digital download games all the time“I just want to see what happens. In regards to the industry, it's like the Super Smash Bros. of business right now, and I want to see if Peach or Mario wins."

Gamers will get to hear more from Bleszinski in the time ahead. The developer will give keynote addresses at PAX East 2013 in March and the East Coast Game Conference in April.

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