What's going on with the audio market?

Real Hi-Fi has always been the providence of a discriminating extreme minority. When I discovered it (via, once again, my friend Pete C.), no one else I knew cared; but then, they were for the most part musician’s, the least caring of all, generally speaking. Ironic. When I got Tympani’s and ARC amps in ’72, my friends were still playing LP’s on their childhood phonographs. When after a long separation I in the early 2000’s saw an old friend, he, upon seeing my Infinity RS-1b’s, said "Ya know, people don’t have big speakers anymore" (no doubt with pictures of Bose wall-mounted speakers in his mind); I replied "They never did". Which was not actually true, in one way; when he and I were in a Band together in ’71, our Band house had a pair of Voice-of-The-Theater speakers (our P.A.) in the living room. And people think Maggies are big?! Now it’s down to computer speakers, at best, for most people. Perhaps getting a turntable will spur an interest in that new buyer of Hi-Fi in general. I believe even entry-level products are viewed as luxury items by the general population. The products musician’s choose (with a few notable exceptions, like Henry Rollins. The big Wilson’s are in his living room!) are all of the professional grade (crap), whatever they see advertised in the music mags and on the shelves at Guitar Center.

@dgarretson: Right you are. I made provision in my will for this-- the disposition of gear and record collection. My wife knows enough people to reach out to them if necessary, but it is an issue as we age. I don’t have kids, and have no misconceptions about the value of, for example, my record collection-it will get broken up and sold off, just like any commodity. I don’t think we are the last generation who will enjoy this hobby. I’ve talked with several youngish people- mid-’30s, who are building pretty serious systems, step by step. I’m glad I have time to enjoy what I’ve put together- sometimes, we are so busy working, and I’ve lost more than a couple contemporaries in the last few years. So, play it like you stole it! Buy that record you always wanted and play the damn thing!
Had lunch today with a brainiac friend- he’s not into hi-fi but is a scientist, and he is very optimistic about the human condition, long range. Me, I’m more of a pessimist, but perhaps I’m short sighted. I don’t think a lot of people have really had a break in the last 20 or so years- more work, more stress, the world today seems harder, faster and more competitive-- so all this stuff, about the state of the economy and the state of the world in general, has to be put into perspective. What were people thinking when they were playing those ’50s era records I own? Cold war, keeping up with the Jones, food in cans and cars with fins (those I miss). I’m glad this whole thing has been an important part of my life. I couldn’t imagine life without it (even though I have gone through periods where I didn’t have access to my system or it wasn’t set up).

I'm 45(almost 46), only been aware of quality audio for 5 years and I don't know but right now every day starts with a cup of coffee, surf check and audiogon(forums and phono preamps primarily) Thing is I'm not buying mostly because I'm not loaded but also because I'm learning about various diy stuff and my rig sounds good enough. I'd rather buy music now and fiddle with the edges and tweak what I got. As for retail audio tanking I can't say but for me it's irrelevant considering what stuff costs and what quality used components can be purchased with just a little internet learning and some listening. I don't think the audio world is gonna fall it's gonna come back around as things cycle. What it's gonna look like?? A greater divide in choices, between high end and diy perhaps. The retail middle ground I can see drying up and is not money well spent especially with Internet 2nd hand offerings, in my experience sometimes over 20 years old that sound wonderful and just as good,with a little help, or better than a lot of new stuff. Secondly, with a shrinking middle class working harder and harder to keep up who has time to actually have the luxury to just kick back and really get into it. Well, I think it's a thing that many will think about again and it will be that outlet but it's gonna have to replace something else:The big game family Sunday's at the stadium there are insane $ imho, the vacation as more folks are thinking Staycation, etc. Music can be something the whole family can sit around listen to and engage, shouldn't it be so. I know, how silly, we'd each end up in our own rooms, bummer. 

whart and fourwnds, great posts, all true. The people I see all around me are so distracted, thumbing on their smart phones while doing everything else, even in a movie theater! Sensory overload. Short attention spans, a general sense of anxiety, increasing health and weight issues (too busy on their sp to get any exercise), and everybody tired and fatigued. Mainstream music has been cheapened to the point of it not being worth it's asking price (except for the isolated "song"), which is now almost nothing (except for new LP's ;-). Music is not currently of major importance in most people's lives. The participants here are the members of their own 1%! The future looks grim to me, but then like whart I'm a pessimist. Or as I like to think of it, realist.

I am 33 years old.  I would like this hobby to continue... I definitely don't want to be the last of a breed.

33 years old, first system when I was 25.  Maybe another 32 years of this?  Hopefully?

Currently a growing system.  BW 802D3, Sonus Faber Olympica 3, Classe, Boulder, Cary.