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theprof00 said:
I don't claim to know about the industry, I just know common sense.

The thing about your post is that it's not true. The same formula isn't getting reused over and over. Things are constantly changing in the gaming world. Look at MS Live!, look at Bluray and the pseye. Look at headtracking and the 3d movement, Natal and plenty of other stuff. Sure, most those things are due to the success of the wii, but they are not being made because of the wii. These things are natural evolutions of the medium and have just been spurred into quicker development due to the wii succeeding.
Look at video game history, it's filled with peripherals and new ideas and strategies. To say that console gaming is stagnant is absolutely wrong.

In addition, you used the word "eventually". Let's not break into semantics here, but I don't think you yourself have any idea of when "eventually" is going to happen. But that's ok because neither does Malstrom. The concept is universally understood, but it's one of those things that really works much better in hindsight.

Before Sony and Microsoft actually looked at how sucessful Nintendo was doing they wouldn't have focused on Natal or Eyepet to the degree that they have now. So it is actually because of the wii that focus for these things are coming out.

Natural evolution of things doesn't always work, book industry is still declining from a decade ago even with Kindle and E-books, you know why because writing books isn't that profitabl and the same is happening to games right now. We don't know if Natal or PSeye are going to take off but we do know that some companies are in the red and have been in the red for sometime for using the same formula.

 

The only company that is a complete outlier is activision, but that may because of WoW, GH and Call of Duty.

PS: I don't see games dying ever personally, I just think game companies are going to disappear soon and the current form of the industry to die someday.