There are a few factors, the primary one being the shift away from JRPGs and the rise of WRPGs. I have never seen wars between 2 subgenres be more intense. Even more so than the 2d versus 3d fighter debates.
But the other problem is that there are simply less games being released because of cost. So yeah we a few amazing games now, like ME2, Elder Scrolls, Dragon Age, etc, but they are fewer because do you know how much those cost to make?
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Chrono1219