The way they get more money out of people is DLC, online passes, and those season passes where people pay an upfront fee to get all of the DLC at a discount. This way they're getting more money out of their hardcore fans without the number on the box going up.Yes Guild, but let me bring up a valid point, that may contrast and bring a valid argument to your position.
The problem I see, is that now that companies know people will pay huge amounts for stuff, they'll want to charge even more. There is a limit to how much they can charge before stuff becomes affordable. Guess what happens when these games become too expensive to afford at the rate they are making them. Yes, It certainly wont keep growing if that happens to ever be the case.
As for Genre's, I have my own opinions.
Personally, I hate the CoD series. Not because it's a typical FPS, but because of the lack of parental guidance and the lack of age limit's for on-line play. I dont want my ears to literally get R3APed by some 5 year old who thinks he's so awesome because he can talk shit over a microphone. Kinda the same for Halo in this case.
Perhaps the same could be said of all Online Games.
I've played some JRPG's which I think just plain sucked, others I have loved to pieces. Same with WRPG's. Hell even plat-formers share this fate with me as well.
I also believe that the Gaming Industry is not putting enough effort into making original games, and not those shitware ones either or one's that rely entirely off of gimmicks, or have crap storylines.
So yes, as I stated before, you are right about the market expanding. However, charging more for every new game that comes out, to the point eventually where nobody will be able to afford them, will actually cause it to shrink back to where it was before, or at least this is my belief on the matter. None of you have to agree or disagree with it necessarily.
Games are already incredibly expensive, much more so than movies or TV, it's $60 a pop if you're getting everything new. These high price tags are what lead to more sequels and less new IPs. When people go to buy a game, they're far more likely to buy a game that is a sequel to something they liked already than they are to just try something new. With sequels companies have a far more predictable outcome, and the industry can't really afford to make many new AAA game IPs because the consumers don't want to take that risk. This is why I think the whole Free 2 Play model will be the future, obviously more so on the PC first, because the consoles will want to keep their current models.
And if a 5 year old comes on, mute him, it's not that hard.