Of course apps are now infringing upon the big gaming consoles,...apps are both newer (often updatable) and priced more affordably (from $4.99 to FREE on average). For me, the reason that I am not buying games for consoles anymore is because consoles have gotten old,...literally. In fact, the last console I purchased was the original Xbox (actually, it was a gift from my wife) and though I loved the games on it (Halo, Elder Scrolls, Madden) and played it to death it could never compare to my PC versions of the game which I could mod and overclock the daylights out of! Ultimately, I was the kind of buyer who, in the end, opted to buy games for the PC only.
The problem with games on the PC, though, is that developers often design their game(s) for one of the big three consoles and then port over the game to the PC. Developers no longer push the bar to greater heights. Instead, they are happy living in the DirectX 9 & 10 world and don't bother with 11 at all since console platforms like the Wii don't support them! I can't remember the last time a game really pushed my PC core temperature [ed. - actually, it was probably Oblivion with the 250+ mods and maxed-out screen resolution,...but that was a while ago. I have since upgraded, though with the crappy games coming out I have to wonder why I bothered?].
Bottom line: with the exception of Portal 2 (which I purchased simply for the physics, puzzles and quirky commentary) I haven't bought a regular game that I simply felt I "had to have", anymore. I'm buying more Blu-rays, 3D at that, and other things that I feel I get more use out of to satisfy my inner geek. Modern games are leaving me feeling that I'm being deprived of the true potential out there. So I "buy" apps, which may not have the graphic interface of my Hi-Def TV but are at least new and cheap. Truthfully, though, since I am on the android platform, even games like Angry Birds can be downloaded FREE and I have yet to pay for an app that I couldn't live without or that some other app couldn't do in whole or in part.
When I think of modern gaming now, I cringe. I still like to play my old systems (Intellivision, Nintendo, Super NES, N64, Xbox, and such) but I do that for nostalgia here and there. I no longer devote whole days to console/PC games because they, too, feel more nostalgic than current anymore [ed. - with the exception of Portal 2, again. I put in 9 hours on the game and have beaten the single player version, though I've yet to try the Co-op mode].
Developers, please start innovating again. If Microsoft, Sony and Nintendo do not have the hardware to support your criteria for making a good game, then just make it for the Mac or PC! You're shooting yourselves by dumbing down your games just to get them on a gaming console. Trust me! If you make a game that pushes the envelope, raises the bar and that console manufacturer's CAN'T support on their console then they WILL come around once they see all the money that they are losing out on. Meanwhile, you (as a Developer) will get praise and glory from the gaming community and save your business! No one will say, "Yeah, it was a fun enough game but could've been better". You won't be stuck with a bad rep for making lame games. You'll be king of the (gaming) world!!!
Another thing,...app developers continue to release updates to their games (often FREE,...again, see Angry Birds) and support their growth. Major Developers tend to put their game out, *maybe* provide some DLC that you pay an arm and a leg for (really, $5 dollars for Horse Armor in Oblivion???), and then move on to other things. No wonder people get tired of your game! If you're already moving on, why should they stick around with it?
Seriously, though, if given a choice between playing an app on an iPhone or Android and playing a console game, then I would go for the console game if both were priced closer together. I really WANT to buy games for the PC/Console,...but you Dev's aren't making it easy for me!
/End Rant