I was with you right up until this:
"As the number of people who play videogames has grown, developers got the cash to make ever more expensive games. But that means they have to sell more copies, which means they need wider appeal, which means they can't aim at small markets like people who like complicated leveling systems and inventory management."
I see it as more: "As the number of people who play videogames has grown, game company financial executives ramped up their market forecasts and investment proposal numbers, which meant they had to sell more copies to justify the investment. Simultaneously, the rapid improvement of graphics and motion-capture technology allowed marketing executives to position graphics quality and photo-realism as a key factor in sales, mainly because pretty screenshots contribute to advertising (and no one can really argue that a given game would be better if the graphics weren't as good).
And concurrently with those two factors, the video entertainment industry began to see games as a parallel medium, resulting in a crossover industry of people who bring "Hollywood expertise" to the production of video games and are expert at selling themselves to company leadership. And in Hollywood, complex, interesting, engaging movies are rarely big moneymakers (unless they focus on or have a heavy dose of sexual scenes).
This threefold combination resulted in game companies shifting the focus of development from complex or realistic aspects of gameplay (which engage cognition for immersiveness) to realism in presentation and the inclusion of gratuitous sexual elements to create an emotional motivation for purchasing."
And that works for the game industries just as it works for any other entertainment industry - when it comes to entertainment, emotion > cognition for making purchasing decisions. The game industry is now Hollywoodized, and we can expect exactly the same kind of product as we get on TV and the movie screen. And they will always claim "it's what the market wants, the sales prove that".
Edit for tl;dr -
Game company execs found out how to push the "shiny" and "sex" buttons on the money machine.
So yeah. We're doomed :\
"As the number of people who play videogames has grown, developers got the cash to make ever more expensive games. But that means they have to sell more copies, which means they need wider appeal, which means they can't aim at small markets like people who like complicated leveling systems and inventory management."
I see it as more: "As the number of people who play videogames has grown, game company financial executives ramped up their market forecasts and investment proposal numbers, which meant they had to sell more copies to justify the investment. Simultaneously, the rapid improvement of graphics and motion-capture technology allowed marketing executives to position graphics quality and photo-realism as a key factor in sales, mainly because pretty screenshots contribute to advertising (and no one can really argue that a given game would be better if the graphics weren't as good).
And concurrently with those two factors, the video entertainment industry began to see games as a parallel medium, resulting in a crossover industry of people who bring "Hollywood expertise" to the production of video games and are expert at selling themselves to company leadership. And in Hollywood, complex, interesting, engaging movies are rarely big moneymakers (unless they focus on or have a heavy dose of sexual scenes).
This threefold combination resulted in game companies shifting the focus of development from complex or realistic aspects of gameplay (which engage cognition for immersiveness) to realism in presentation and the inclusion of gratuitous sexual elements to create an emotional motivation for purchasing."
And that works for the game industries just as it works for any other entertainment industry - when it comes to entertainment, emotion > cognition for making purchasing decisions. The game industry is now Hollywoodized, and we can expect exactly the same kind of product as we get on TV and the movie screen. And they will always claim "it's what the market wants, the sales prove that".
Edit for tl;dr -
Game company execs found out how to push the "shiny" and "sex" buttons on the money machine.
So yeah. We're doomed :\