All gaming being held back by console users.
3d gaming hardware is getting more and more specialised and more and more expensive. The problem is, console owners don't like paying more than about £250 for their new system when it's released.
The xbox 360 was an engineering miracle when it came out.... to cram a geforce7800gtx into a box that small, all for less than £250. It was no surprise they overheated all the time, it was essentially a top-end gaming PC with a £350 graphics card in an itx case..... selling for £200.
Sony tried to do the same thing, but including even more expensive hardware with the blu-ray, and they couldn't keep the costs low enough to compete with microsoft, and consequently got their asses kicked in the sales figures. Nintendo saw all this happening and decided that powerful consoles are too risky: The Wii was technically crap, but has become hugely popular with console gamers.
Microsoft and Sony MUST be selling all of their consoles at a loss.....at least at the beginning when the hardware was considered top-of-the-line. Their business strategy relies on 2 things. The first, is the projection into how much the hardware will cost to produce several years down the line. Due to the global recession, I'm guessing the parts aren't as cheap today as they were expecting 5 years ago.
The second thing is the amount of games each user has to purchase, before they start making a profit from them. As hardware gets more and more specialised and more expensive, this projected figure is going to go up and up. Console users don't want to pay more than £250 or so for their console, which means they're going to have to buy more and more games for each console, before the manufacturers have made sufficient profit to start R&D on a new system. Sony have already said the PS3 is going to have a 10 year lifetime, and unless console users put their hands in their wallets for top-end gaming, the trend is only going to get worse.