This change, which favors the newer writer, the midlist writer, and the bookstore itself, is why you will hear so many long-time bestselling writers complain about the decline in book sales. It’s also why you’ll hear traditional book editors, who don’t see the long-range sales figures, make that same claim. They base all of their decisions on initial print orders, not on actual sales.
A couple of my self-publishing students are worrying about the state of publishing.
There's nothing to worry about. Publishing in general and self-publishing in particular are booming. Don't let anyone tell you otherwise.
Read Kris's excellent article on the state of play in publishing.
(Then realize the state of publishing, while interesting, shouldn't concern you at all. Focus on writing your books. :-))