If consoles are going to be limited to epic games then investing in consoles becomes a huge gamble. You have 200 million to spend, do you want to create 1000 games for the iphone or 1 big console game that if it gets below an 80 on metacritic will be considered a "flop".
People don't buy misses on consoles and they don't buy casual games. They buy the big epic games like you described and that is KILLING the industry.
Consoles were, and are, still dominant because the most time that the average person spent with a screen was a TV.
However, the consumer's usage habits are adjusting. The primary screen they are beginning to use is the smartphone and, eventually, it will be the same for the tablet because it is so mobile. This is where gaming is going to have to go.
>Console gaming is about big screens, epic scenery.
That may be what consoles are about but that is not what gaming is about. I would think that it's a dream for any gamer to have access to the same game wherever you are.
>They have already announced IE for xbox.
This will likely be the least used feature of all of MS's announcements. I don't know anyone who enjoyed using a browser sitting 10 feet away from the screen.
the IE for xbox is just part of the movement on Xbox to turn it into the entertainment center of the living room. It's sayign that it's not only for gaming. The fact that Xbox is used more as an entertainment center than gaming is just sign of things to come. It's pretty obvious that the next xbox is going to be marketed as an entertainment center rather than a console.
Phones already support bluetooth, so there is no reason why a couple of dualshocks cannot work with my android phone for team gaming.
I daresay if Sony did not have its "sunken cost" pathology about the playstation consoles, it could rule the gaming world - it already makes Playstation phones and it is one of the world's largest game publishers - it is just too scared to take the final leap. In one shot, it could come up with a phone and game library that could cannibalize its PS2 range.
However I'm not sure about Wii and PS. They have no Platform to compete with Apple TV and Google TV.