I'd easily say gaming today is better than gaming yesteryear. We have more games, more diversity (you may go "hurr hurr everything is a FPS game" but that's far from true), more ways to play, and just better games. We're able to advance in all frontiers while still staying connected to the pass. Big studios continue to be big while smaller studios also get a chance to shine. Our consoles have more power, more ways to play, more features, and more selection.
We also have tons of studios dying from increasing development costs. We have overpriced DLC with some available at Day 1 and online passes. There are less stellar Japanese games and JRPGs. The FPS genre now consists of COD-clones. Game prices have increased. Publishers started applying new forms of DRM to their games. Local multiplayer (aside from the Wii) has been taken out of most games in favour of online multiplayer.
It wasn't all that good. Frankly, the best that came out of this generation were the handhelds.
I suggest you watch
this video via Extra Credits on how Day 1 DLC works.
Also, is overpriced DLC really that bad? It's still just DLC. If you don't like this price, don't buy it. It's better then, back in the day, if you wanted a new level pack or something, you ended up buying the whole game again plus DLC. I know Capcom isn't exactly good at adapting but Street Fighter back in the day was just released tons and tons of times and you had to buy it new every time. They've at least shown some small progress in that area with Arcade Edition. Mind you for every step forward they force an Ultimate Marvel vs. Capcom 3 or original Super Street Fighter IV down your throat but one step forward and two steps back is better than just two steps back.
IDGAF on Japanese games and JRPGs so much so that's not really a bad thing. In all honesty it's not like they were, at one point, stellar and then just took a slide down shit hill but they just didn't have competition. If you wanted a story based game, you got JRPGs. Games just didn't have the complexity back then they do today.
Okay, so CoD clones. We have CoD I guess. Homefront too. Medal of Honor counts, right? Battlefield 3 is significantly different. Everything else is rather different. Look at every other FPS game this generation. Half Life 2. Team Fortress 2. Counterstrike Source. Left 4 Dead and Left 4 Dead 2. Borderlands. If you want to count all the first person games that just so happen to feature shooting, you get Deus Ex: Human Revolution. Fallout 3. Fallout: New Vegas. Portal. Portal 2. If two games constitute the entire genre as "CoD clones" then my definitions are quite off.
Game prices have increased, big whoop. Gaming is a luxury. It's not like anything that matters here counts. You pay more for better games.
There's hardly the large amount of tyrannical DRM that people say there is. There's your Diablo III's, sure, but even Ubisoft dropped the horrible DRM from Assassin's Creed II and such. Most of the time it's not even noticeable unless you pirate, in which case, why the fuck are you complaining? You're pirating a game for god's sake.
For games like CoD (which still have local multiplayer), large scale is what matters. Games aren't developed like Goldeneye or Perfect Dark anymore. I'm not saying that as some "GAMES AREN'T AS GOOD AS THEY WERE" anymore sort of way, it's just a shift in technology. When you have access to a strong online infrastructure, you want to make a multiplayer game that caters to it. You don't want a game based on like 4-player combat when you can have 16, 32, even 64 players or more. There's still strong local multiplayer games like fighters and such, but its just adapting to technology.