Publishing companies have bought into the Technology hype. If its not "Next Gen" then they don't want to hear about it. They will not put any money towards a game that is not pushing the envelope of technology (or an MMO it seems), much to the detriment of many companies, and potentially great games with solid "Game Play"….witch is what this industry should be all about.
As much as I like Technology, it should not be the focus of the game industry, we make games, that is what we should be doing. The PC market is suffering in sales because the only people who can play the games being made are the ones with the super high-end PC machines with the latest killer video cards with 4gigs of Ram. This makes up about 5%-8% of the potential gamers who buy games, and that doesn't even mean that 100% of that 5%-8% will buy your game. The average PC consumer spends $600-$900 on a computer from Dell, Gateway, or Fry's Electronics….there are easily 100 million computers out there, more if you count office computers. This is a much larger market and the target should be quality games that target the mid to lower end machines, with options that will work for players with high end specs.
Then there is the consol market! Xbox 360 has only around 10 million units in the US and about 18 million World wide (These numbers may be out of date and would require more research to verify). With the exception of the Playstation 2 witch has 40 million units in the US and 120 World wide.
So at what point did the PC market stop being a viable game market to target? Was it when technology go so complicated that the average consumer couldn't install a game and have it just work? Is that why consoles are so much more appealing as a game platform? I can only hope that with the current technology that has just come out, we will not see any more huge tech leaps (Im looking at you Crysis and Unreal), and now we can focus on making games again.