I think is not the "beginning of the end", but I do think the market for dedicated gaming consoles will shrink this generation. A lot of people is just not interested and they have a lot of alternatives to get their games, cellphones and tables taking part of the market, specially with the low price of the games.
People will think twice about spending 300-400 dollars on a new console when they can still use their perfectly good Xbox 360, PS3 and even Wii. Also they are buying new cellphones and tables and they can get new games in there for almost free.
The dedicated gamer community is not a big as people think, a lot of PS3 and Xbox 360 (and obviously Wii) owners only bought the console to play Call of Duty, Madden, Wii Fit, or in my region FIFA and/or PES, hell I bought my PS3 last year and I already have more games that all the other owners of the console that I know in my work COMBINED!
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