Gaming is a larger market than Hollywood. Maybe it becomes a distraction for Nvidia, but someone will step in. That might actually be a good thing and why Nvidia wont do that: it creates an under served market in which newcomers can cut their teeth.
I think we would see an increased push towards cloud gaming. That's probably what Nvidia would want.
Much of the gaming market is phone games however, not traditional consoles or PCs.
Edit: about half in fact! The rest is shared between the other traditional gaming types.