It's nice to see a valid discussion turning into a Nintendo versus Sony/Microsoft hate thread.
Myself, I think that the massive amount of sequels is a problem.
For every sequel created by a brilliant studio we miss out on something new and exciting. A really good example of this would be the end of the Super Nintendo era Square. They really did some awesome stuff then, none of which would have been made today. Those games would all have a Final Fantasy title, and probably be a lot more boring.
This said, I'm not sure whether the fault is with the consumers for being cowards only buying sequels or the industry for being cowardly (and wanting profit) and mostly producing sequels.
Also, I would like to point out that even sequels and spinoffs can be innovative. And the industry has progressed a lot the last decade, with many small innovations that has made a lot of difference to playability and fun. But it doesn't feel exciting and new when the game is called Final Fantasy XXXIII or Call of Duty 68.
... Oh god, those sound like porn titles. *>,
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