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HappySqurriel said:

No matter how good a game is and regardless of the genre, if too many games are made that are too similar fatigue will set in and sales will suffer. Some games and some genres are more popular, and even when their sales suffer they may still sell well; but no games are immune from the consequences of too many similar games being marketed.

One BIG element of games is novelty.  A game has to do something to surprise, and entertain.  If you keep doing the same over and over, people get bored.  I do believe a game genre can get played out if it is played out too much.  And, you can take the converse to.  IF players end up happy with what is there, then they may not feel a need to get something new, if it really isn't new, and will stick with what they have.

One can say, "Oh Madden is casual and..."  Well, Madden has roster updates, and EA can force people to have to buy the new version, to get the new roster.