I already feel like the industry went the direction of sterile games where doing anything interesting is too great of a risk. Indie developers have caught on like wild fire because they are the ones making really interesting games. From 1995 to around 2002, there was an explosion of innovation because of PC gaming and an acceptance of 3D-polygonal graphics. The market successfully offered games for everyone whether it was Sim Farm, bass fishing, deer hunting, or running amok committing crimes ala GTA. The 360 and PS3 were the first consoles from MS and Sony that I ever actually owned, and my 360 experience was so plain that I had to sell it and pick up a PS3 just to get a decent baseball game. I truly, truly missed out on the Xbox and the PS2. I think it's night and day the difference in developer values, and if someone had shown me the future of these platforms I'd have not bought them. That's right. I would have just been a happy Wii owner who continued to play games on PC.
The indie development revolution is rekindling some of that lost spirit, and I guess it took the mobile platform to bring it back. Kind of sad. Aside from those indie offerings, I wouldn't bat an eye if the industry died a hard death and had to be rebooted. There's way too much money being funneled at making the same types of games (shooters, mostly), and I don't see any truly new features or enhanced levels of world detail. It's not that I can't think of any games that really pushed the envelope in some way, but when I think back on them, they're all just shooters in one form or another. Even the best RPGs were sequels, shooters, or both.