Currently, The UK is officialy in recession. This fairly recent turn of events is also effecting the rest of the planet.
Developers and Publishers are having to cut back on expenses, and of course understand that this year will be difficult. With rumours that nothing will get any better until at least 2010, its rather a scary situation.
This isnt to say that the games industry will suffer completely!
The pounds weakness, though not good, means that the UK can trade easy with other countries. Also, another upper hand the UK has is the game developers themselfs. Many UK games workforces are at least 80% qualified to degree level, which is always a good thing!
I found this article on what its like to work in the games industry :- http://badpopcorn.com/blog/2008/09/15/what-its-like-to-work-in-the-game-industry/
It made me feel pretty happy about where I want to be. It sounds like the perfect place for me, where people are less interested in material rewards than they are in what they are actualy making and doing. And they have fun!!
Threats to the industry, the most recent, must be the reccession. Despite this i doubt it will have a huge impact. I know that companies are cutting down on recruitment, but it wont last forever. As well as that, one that has been going on for a while, is piracy and 'hacking' of games. I feel piracy will last for a long time at least. Why? Because clever people normaly figure a way to break sonething for the 'greater good!'. Piracy doesnt just effect computer games of course, but it is still a big issue. Much money can be lost, and not much is being done about it.
I think the games industry is still going strong though, people love it and im sure that support will keep it going for a long time.