First let's talk about more games becoming like movies, and I don't mean that in terms of story elements, but more in the sense of long and, in some cases, tedious cutscenes. Games should be a mix of great story and gameplay. Games like Portal and Borderlands do a freaking incredible job doing this, amazing stories with really short or practically no cutscenes at all. I'm not saying games shouldn't have cutscenes (practically all games need it) but keep them as short as possible, tell your story throw gameplay and the environment (like the Bioshock franchise), not with a long tedious cinematic.  

We also have games which are becoming more action oriented. Dead Space 3 and the RE franchise are examples of this, just because the survival horror genre is "no longer popular".

Going beyond that, we have real actors doing voice acting for video game characters, is this really necessary? Yeah Kiefer Sutherland is doing the voice of Snake, that's cool, but does that make the game any better? Not really, it only makes the development cost even more expensive. Marketing also goes into place, one example that comes into mind is Darksiders 2 and this trailer; they hired James Cosmo (from Game of Thrones), imagine how much money THQ (may R.I.P) wasted on hiring that guy, just to gather the mainstream media, instead of using that money for the game itself (which could have used a little bit more polished).

Don't get me started on actors on E3…

This are just efforts of the video game industry to try to gather the mainstream  audience, and imo this won't work, it will just make the games and the marketing more expensive, plus easier and boring.

Anyway rant over. 

Of course not. I want Suda51 to stay as niche as he is.

On a more related note: just look to zombies. I still love them, (huge George Romero fan, people!) but I rather prefer the genre back when it wasn't for everybody. After it got popularized, it has been taken to the extreme, and its showing fatigue. Probably people will let the genre die one day after no one else is interested in, and I'll be pretty sad.

I'm perfectly fine with video games going main stream, I just don't want them to go down in the gutter like other industries that have gone the mainstream route. I'm not a complete hipster.

Games have always been "mainstream", that's why the first Super Mario Bros sold 40 million and that Duck Hunt game existed.
However, it's true that games are trying to be more like movies.

Movie games are not mainstream games.

The more arcade-like the game, the more mainstream usually. For example, Guitar Hero, Wii Sports, etc.

I like arcade-like games, so I have no problem with games going mainstream.

Obviously not ALL games.

Yes and no (cop out answer!).

It's great for gaming to be in the limelight, and to be able to reach new audiences, but having a bigger audience to aim for means that games have to dilute themselves sometimes. Appealing to the lowest common denominator means the things that make a game special, or define it as unique, get stripped away. Your high budget game won't sell [insert ridiculous number required to break even] if it doesn't try to get as large an audience an possible. However, doing that means it can't be too risky or complex, which is a real burden on creativity.

So.. I guess I was leaning more towards 'no' after all?

I wouldn't mind so much if it wasn't hurting the industry like it is. Otherwise, who cares whether something is 'mainstream' or not?

...Industry crash incoming?

According to most gamers on the internet people who believe in an industry crash are crazy.