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Everyone wins. Here is one simple reason: the market for "hardcore" games isn't going anywhere. As long as that exists, people will continue to make those games. If everyone makes party games, nobody will make any profit from their games.

Logic and simple economics...just think about it. Gaming as we know it is here to stay.  There may be more casual games around, but they will be added to the market, they won't take anything away from the core games.

I also wouldn't be surprised to see more games made for everyone.  Like Mario Kart Wii, or World of Warcraft, that can be enjoyed by causal or core gamers. 

 

Spore utterly failed at this, and only really appeals to casuals.  It could have been so much more, without sacrificing sales.