saturation of the market with dozens of consoles? check
How is that a "check"? Where's the dozens? The market has consolidated down to three major console platforms (PS3/X360/Wii). Back in the 80s there were a lot more consoles. The market also doesn't seem to be saturated yet since console sales and console game sales continue to grow at impressive levels. We're far, far away from a "check" on this one.
hundreds of mostly low-quality games? check
Compared to back then? Hell no. Even "low quality" games cost a few million $$$ these days. No one's got a few million to dump that easily. Back then it was very, very different because development teams were often made up of only a handful of people at most who were working from home or very small offices. Most games had a budget of a few thousand dollars and were made within a few weeks or months.
Nowadays, even if you want to produce a low quality game, you need a team of 20+ people, a decent office + equipment + software licenses + beer + hookers and all that crap which will set you back a few million dollars at a development cycle of approximately 2-3 years.
Lastly, there's also the difference in scale. "Hundreds of low quality games" back then would equal "hundreds of thousands" of low quality games today simply because the market grew by a few 1000% since the early 80s. Today's market can easily stomach a few hundred "low quality" games because it's so much bigger.
Totally different thing. Once again we're far, far away from a "check".
Hundreds of games in development? check
Once again we need to remember how the scale changed. Today's market is so much bigger that we'd only need to worry if dozens of thousands of games were in the making but the entry level requirements of today's market (a budget of a few million dollars and a certain level of proficiency) do create a "natural" border that isn't easily overcome by any kid that can code three lines of Assembler (like back in the early 80s).
Again: Totally different thing.