No doubt games have change as there are less "hardcore" games (not the same as hardcore gamer) on consoles and even on PC. One of PC's biggest hits is "World of Warcraft" which many agrees it more dumb down than other mmorpg. Mmorpg themselves were always more simply than single player rpg.
For example I never saw anything close to a hardcore strategy game like Carnage Heart (PS) on the PS2. One of my favorite all time rpg on consoles was Vagrant Story on the Playstation. That series was dropped because the combat system was too complex for many casual gamers compared to Final Fantasy simple combat system. (FF12 make some improvement).
I believe Vagrant Story showed many developers that you can't make a game too complex (one where you may have to look into the manual to figure out what you are doing) when you are investing in high dollar games.
In many ways gaming have improved but in other ways many games feels more dumb down. For example COD4 has improved graphics and sound which make you feel you can in a war zone yet there isn't much of a cost for getting killed. You return to the last check point which comes up very often, no need to worry about health because you heal automatically. It almost like I'm playing the game with a Game Shark.
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