And to top it off, rol, the people who buy those niche games and titles are very likely collectors and hardcore gamers who already know what they want, so the only titles that people are going to move away from, are the shit titles. True there will be more people going to the big franchises, but that will likely be people who aren't really looking to get the game they want. You're talking about browsers, casuals in stores who say, "hey this looks good".
I'd bet that the people who bought demon's souls bought it because they wanted it, and very few returned it. OTOH, people who bought kane and lynch because "it has guns and stuff" (a shitty game) probably would move more toward the big franchises.
In the end, I think that games which people know are good, yet niche, will continue to sell just as they are, and games that the devs KNOW suck will be cancelled, etc, and thereby push more purchases into the big franchises, adn decrease the number of turds that come out.
