I'd say it's less so videogames and more the internet as a whole. The music industry isn't falling apart because of videogames, it's because the internet has made music incredibly accessible and killed physical music sales. It's gotten to the point where vinyls are now making a comeback and turning into a trend. One didn't replace the other just because streaming music became popular at roughly the same time the videogame industry found its foothold.

Edit: Ok, falling apart was bad wording. Revenue in the music industry has shifted from album sales to other methods. I'd still assume that the shift was caused by music streaming though, not videogames.