Ray Kurzwiel writes about how the law of diminishing returns and the law of accelerated returns are actually complimentary. All the way back to punch card machines a technology has appeared, accelerated hit a wall, only to be replaced by a new technology within a decade.
I suspect we're there with silicon. That or, in a world with finite resources that chooses to invest in yesterdays fuels rather than tomorrow's computers like the car will become 3-4% more efficient every year, leading to smaller, lighter devices year after year
The most likely result is we're heading towards the uncanny valley http://en.wikipedia.org/wiki/Uncanny_valley
Where things get so close to real it starts makes us feel revulsion towards the character. The simpler the character, the easier it is to like. Mario = easy to like. Max Payne, takes a little more work. The cast of GTA V takes a massive budget and years of effort.
My younger sister is 15, and watches other people commentating on people driving tractors and trucks together online. Maybe as I edge closer to 30 gaming has changed, and the concentration in the gaming market is because
1) I only have time to buy and play 3 or 4 games a year
2) Kids of today like f*cking weird sh*t
Either way. Bioshock infinite looks awesome. PS4, not so much. I spend most of my time on Fifa 13.