A better quote on the effects of the PS3 and 360 on creativity from a better developer:
Making a 40 or 50 million dollar game is cool, I love making big games don’t get me wrong, but you have soooo many more masters with their hands in the creative pot when that kind of money is getting thrown around. Hopefully when the game industry becomes more comfortable with those budget numbers things will get better. -Cory Barlog
I think that's a major issue, and I think this is why we have 724,638,345,134 FPSes on the PS3 and 360. Everyone knows there is a market for guns and blood on the systems, so that's basically what the publishers are allowing the developers to make. You think a game like Zack & Wiki would ever have gotten publishing approval from Capcom for the PS3 or 360? Of course not. Big budget certainly can greatly limit developer creativity.
Edit: I should point out this is a 3rd party problem more than a 1st party problem really. 1st parties will fund more diverse games (LBP, Blue Dragon, etc.).
