Possibly on the verge of another crash, there have been numerous companies (esp. EA) reporting huge losses and low sales; despite these titles getting great recognition and praise. It as a whole would basicly be in a rut. Plus there wouldn't be the move and Kinect.
Its basicly the early 80s all over again but in a slightly different way. Nontheless, they're rushing game developement, increasing costs, and still pushing the concept that advances in technology paves the way for success; despite companies dening the highcosts.