Its a dangerous assumption (and the one most professional videogame analysts tend to make)but I think that in terms of trends, what we are looking at now reflects what we will be looking at a decade. Casual gaming (minigame collections, motion controls) will dominate but hardcore gaming will thrive in its shadow (so long as hardcore games continue to put up good numbers in the West).
While I don't think motion control has brought much to the table from a game design perspective, the excitement it has caused among people traditionally indifferent to games is undeniable and its effect is already being felt. For such people the peripherals literally make the game fun. As a result, peripheral based gaming and minigame collections (which have always been with us) have exploded in terms of popularity. Right now we're looking at (among other things)cameras, wands, drum sets, scales, wheels, guitars, skateboards and pulse monitors. Processing power and in-depth games mean nothing to the peripheral crowd and their numbers mitigate against the types of hardware improvement/console cycles we've seen in the past.
That being said, the future is still bright for traditional, software focused gamers due to DLC and downloadable games. While both are controversial, both are good things that will benefit gamers and the industry.The download route isawesome because it gives small game makers a way to release console games (it allows allows niche games such as Siren to cross the Pacific). DLC is awesome because while it has been and no doubt, a decade from now, will be subject to abuse by unscrupulous developers/publishers, in conjuction with the internet it allows good developers to listen to fans and give them exactly what they want. That might translate into the most popular character in an adventure game getting some 'Lost missions' as DLC or a map in an online shooter which facilitates a style of play that has become popular 'Sniper's Heaven, Pilot's Paradise, that sort of thing) or just includes some terrain type users want to see. Also, I think user created content (not just level creators like LBP or Halo 3's Forge, but skin creators like Forza) will get bigger and bigger.
For the above reasons, I think while the futureis bright for hardcore gamers, in a decade life will be a little tougher for makers of hardcore games. Want to sell a new free-roamer? You're not just competing with the year old GTA, you're competing with the expansion pack that was just released. Will this result in fewer games? Maybe. It will certainly mean fewer from those who are supporting their old games as opposed to just focusing on new ones, and it might mean fewer games from those too intimidate to go against an established game. Of course, not being willing to go against the latest Halo expansion pack might lead a develop to make something other than an fps, so longer lasting games might result in more innovation (that could very well be me being optimistic though).
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