Where to begin....oh wait i know:
-The decay of the FPS genre. Seriously WTF?!?! We have an annualized COD franchise and that's pushing EA to annualize their Battlefields/MOH and now even Halo's following the trend. The sheer number of fps games in market is VERY BAD for the industry. Remember back in 2009, MW2 pushed sooo many games outside of the Holiday release window cause game devs and publishers were scared of loosing too much money in the quarter trying to compete with the billion dollar baby.

-Next would definitely be stories. Yes there's all this innovation and new gameplay types out there, but god the stories to push you thru the campaign are horrendous.

-The fall of PC gaming. This decade marks the dethronement of the almighty PC. Yes, it's true that if you want the best quality graphics and special physics you'd do right to pick the PC copy of your multi-plat titles, but there's not that many AAA PC titles being released. This is resulting in lower qaulity games, because the 360/PS3 are now the lead console for development and PC is getting ports. PS3/360 are starting to show their age and developers need to start keeping up. (yes i know, they're just gearing towards the majority that are on consoles)

-Piracy. The dreaded word in the gaming industry and will probably be the key factor why cloud gaming will be being pushed by third party developers soon. As of 2010 All major home consoles and portables have been hacked and are open to piracy.

-Merging Genres. Say what you want about ME2....Most of my friends tormentingly agree that its a 3rd person shooter with RPG elements. There are soo few single genre oriented games nowadays and that every big release has to have a "action-ish" feel to it.

All in all, I'm pretty dissapointed in the state of the industry right now, but future technologies excite me and the possibilities are truly endless! Sorry for being all negative and crap but to go out on a positive note:
Gaming has become alot more mainstream. Back in highschool everyone from the anime kids to the football team was playing games on a console. Most girls I know now have at least tried some form of HD console (a few are even better than me @ COD). Nintendo really opened up the market and with a larger appeal more money will flood back into the market