LordTheNightKnight I also feel this is a valid issue and bringing up Shenmue was an excellent point. I actually have been thinking about this as well. With growing gaming budgets, it seems like the market could very well be in danger in the future. As graphics become more complex and better, making them better also begins taking up more time which ends up consuming more money.
What I'm worried about is in the future if the hardware becomes so good that it'll end up destroying the industry because to use that hardware would require massive budgets. At this rate, hardware is growing faster than the money needed to produce a game that can utilize the hardware.
So what can the industry do? The fans are always crying for improvements, would it be possible to keep both hardware and games at a standstill to allow for the economy to play catch up, or will gamers become displeased that games aren't improving enough graphically, in AI, and physics and stop buying games. The average gamer already screams at devs for being lazy, or should the industry just try to slow it down. It's already been seen many times in the modern world that advancements could be bad.
Old eastern philosophy actually discouraged advancement because they believed it would result in destruction. Take the car for example, a very good idea, but also at the same time a very destructive idea. If cars didn't exist there wouldn't be car crashes, around 42 thousand people die in a year from car accidents. At the same time cars are also bad for the environment, they are also a reason we fight for oil in Iraq, it could be easily argued the cons outweigh the pros.

I guess Too Human will be the real test, since it apparently costs a lot, but is an unproven franchise (comparing Titanic to Spiderman 3). It might be best if it just breaks even. If it flops, that could ruin "Silicon Knights", which is a good developer. If it's a massive hit, then it would likely open the floodgates, at least partially.