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At the moment he is probably right.  Killzone 3, Bulletstorm, Homefront, Crysis 2.  All in just a little over a month.  Though sales still seem fairly strong, so who knows.

RolStoppable said:

So what about Red Dead Redemption then?

Besides, the rise of FPS has more to do with people wanting to play online and if their friends only play a few specific games, then there isn't much of a choice other than playing the same exact games. The dominant genres of online gaming are FPS, RTS and MMORPGs, but the latter two either don't really exist on consoles or are impractical to play compared to their PC counterparts. That's why the online community on consoles revolves primarily around FPS games. We won't see any sort of migration towards sandbox games when the next GTA launches.

GTA IV is still in the top ten games played on xbox live.  Granted not all of those are in the multiplayer I believe, but it is probably substantial.