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Part of the problem is sort of casual gamers. I just look around me and I hear all this talk about games I would never even consider buying. And the more those games overrun the market the better chance there is the more 'hardcore gamer games' are going to get lost somewhere in the middle.
Back in the day gaming was really directed towards a different type of audience, and kids these days are growing up being saturated by all these crappy games and cell phone games and other useless stuff. Thus, the real gamer games are becoming more a thing of the past.
And unfortunately it's probably going to keep trending this way. :(
I'm not really sure if that's of any effect to console games. The casual audience is an entirely new market. Them buying casual games doesn't really affect anything. For handheld games I can see damage being done, but that's not the problem here.
The real problem with games these days are three letters. AAA. Games with a huge budget that need to sell a huge amount to break even. If one game fails, you're screwed. Just look at all the publishers in trouble right now. Even EA is having financial issues. When the PS4/720 release this problem is going to get even bigger, until it all finally collapses. The only developers left will be smaller studios and developers who aren't entirely dependent on their latest blockbuster selling 10 million.
It's already happening. Indie games are more popular, and thanks to things like Kickstarter developers don't even need publishers anymore. They receive money to make games people want, not to make games publishers think will sell well. All they have to do is make a quality game and keep the trust of people and they're safe.
the problem with SE, is that they publish too many high budget games. its like every 2 months, they'll release a new AAA game. they're spending too much. just stick to RPGs. that's what they're most known for.